Market talk
With less than a week to go before the long-awaited September FOMC meeting, the market is finding itself in a wait-and-see mode. Albeit weaker than expected payroll numbers likely pushed some forecasters to revise their estimates, surveys released after the report still points towards Septapering…
USD strategy
A reasonable assumption is that the FOMC doesn’t want to see interest rates rise much further at this juncture and therefore will use a fairly dovish language in connection to the tapering announcement. If this premise turns out to be accurate, a reversal in rates in the short run seems probable, even though the bigger trend admittedly points towards higher rates…
EUR strategy
Encouraging data has been a theme also in the euro-zone and we are now inclined to flip our reasoning from January and look to pay EUR 5yr5yr vs. USD and enter relative steepeners in EUR vs. USD…
SEK strategy
We are inclined to believe that a first Riksbank hike in April is too early, but at this point, it’s wiser to look at combination trades rather than outright front-end receivers. We think SEK ASW spreads begin to look too tight and finally, fundamental support has come suggesting that a more notable reversal of SEK spreads against NOK is on the cards…
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Nordea