FX Weekly: 13th September 2010

 First week after summer holiday lull failed to spur clear market direction leaving most asset classes in range trading mode

 Across the board EUR weakness resumed alongside uncertainty over banks in the European periphery and peripheral sovereigns that must raise significant amounts of funding by the end of 2010

 Sterling pairs were broadly lower as chances of policy tightening disappeared over the horizon. Market expectations see the next BoE rate hike in mid-2011.

 New Basel III financial rules were in line with expectations while extreme leniency over their implementation has given banking stocks and equities in general a boost in early trade today




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