On Monday, markets took a breather after last week’s repositioning. Core bonds regained some ground after last week’s sell-off, the rally in equities halted and so did the sharp rebound of the dollar. The USD gains at the end of last week were not really supported by high profile news. A strong claims report and some standard comments from a well-know Fed hawk cannot be considered breaking news. So, last week moves were probably due to order driven repositioning. As this move is worked out, markets try to find a new equilibrium. The euro regained some ground even as equities were under pressure at the open of the European markets.
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KBC