FX Weekly: 31st October 2011

  • A further 15% of the S&P 500 reports this week, but with over 60% of companies having reported, a strong earnings season is to some extent already discounted
  • G20 needs to make progress in filling in some of the bailout blanks for momentum to be maintained. Without clarity, risky assets (including EUR pairs) may come under pressure
  • Mario Draghi’s debut as ECB President is the key event for intraday traders
  • European macro data has plunged in Q3 so a rate cut isn’t completely discounted despite the latest bailout pan- an ECB rate cut is 20% priced in for the time being




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