Once again it feels like the calm before the storm in the global capital markets; while the US closure on Monday has a lot to do with it, the intra-day ranges...

Once again it feels like the calm before the storm in the global capital markets; while the US closure on Monday has a lot to do with it, the intra-day ranges in many assets seem worryingly low. Perhaps there's an element of traders who are simply staying put, waiting to see if the S&P 500 can break into blue sky territory again, and then the momentum-focused traders will jump back on board. Certainly it would be nice to see better US data; while many will attribute the slowdown to weather patterns, there are a number of issues that simply can't be blamed on the weather. So until clarity is restored here (which may take some time to materialise), the market won't look to significantly unwind treasury longs, especially in the short-end, and go overweight the USD again - (VIEW LINK)