There is a strong correlation between banks and bond yields, as the chart below shows. Extreme interest rate policies in Europe and Japan have led to remarkably low yields, and in turn, banks trading close to - or even below - book value. However, with rates turning back up in... Show More
The US dollar lost its safe haven play last week when it encountered major resistance from its 200 days moving average level, according to Saxo Capital Markets Sydney-based trader James Kim. In the next few days, the US Dollar Index might be testing re-entering the channel it broke during the... Show More
In the lead-up to the next monetary policy meetings of the European Central Bank (ECB) and the US Federal Reserve (Fed), things are now pretty clear, according to Saxo Capital Markets Asia Macro Strategist Kay Van-Petersen. He says he’ll be sticking to “the clearest path of least resistance”, which is... Show More
Following the atrocious attacks in Paris this weekend, Saxo Capital Markets Asia Macro Strategist Kay Van-Petersen says that while "Parisians will emerge out of this stronger and more united than before, unfortunately politics will be something very different". Van-Petersen believes the latest terrorist episode claimed by ISIS will put even... Show More
This week gold has reached the lower end of its current range. The news from the currency market is that real money dollar buyers have only just started to react to the recent weakness in EURUSD. Saxo's head of commodity strategy Ole Hansen says that whether this will translate into... Show More
Eurozone leaders have given Greece until Wednesday to pass six sweeping measures including tax and pension reforms before discussions on further bailout funds can resume. Leftist Prime Minister Alexis Tsipras will be required to push legislation through parliament to convince his 18 partners in the euro zone to release immediate... Show More
World's most accurate currency forecaster of 2014 sees the euro dropping to parity within 2 years. After watching the 19-nation currency slide as low as $1.1754 today from last year's high of $1.3993 in May, ING sees it continuing to weaken all the way to $1, a level last seen... Show More
Saxo Bank Chief Economist Steen Jakobsen's essential trades for Q4... The world is not ending, it's getting ready for a new beginning, says Saxo Bank Chief Economist Steen Jakobsen in his outlook for the fourth quarter of 2014. Jakobsen has recently changed his trading strategy from investing in core European bonds,... Show More
Airbus shares climb on strong first quarter results, says Saxo Bank Head of Equity Strategy Peter Garnry. Saxo Bank's Head of Equity Strategy Peter Garnry has seen one of his top three picks in Europe take off based on rising wealth from emerging markets lifting demand and overall prospects. Garnry says... Show More
The key talking point on the desk today is what exactly is going on with the USD and whether it is time to get back into longs. I have been bullish on the USD lately, but while the longer-term prospects of the USD are strong, there are other forces in play... Show More
Mario Draghi says he's ready to use unconventional instruments to fight low inflation, yet the financial world remains unconvinced. Last night Draghi said we will monitor developments very closely and we will consider all instruments available. We are resolute in our determination to maintain a high degree of monetary accommodation... Show More
Currency Update: The weaker tone for the AUD was set yesterday morning when the construction activity for Q4 came in weaker than expected registering a decline of 1%. The AUD was weaker as the dramatic events unfolding in the Ukraine pushed the USD higher and the EUR lower. Today at... Show More
According to the SMH, the top five currency bets being pursued by Hedge Funds this year are: 1. Long USD vs Yen. The whole driver (this year) is going to be yen. If you're only a USD guy and you're ... only in euro/dollar, you're going to get a whole... Show More