There was a slight miss in August NFP which pushed Bond Yields down and pushed down these Spreads slightly off lofty levels. There was some good action today as there was a good range in these Euribors and Short Sterling, with a slight downward bias, yet there remains a strong underpinning for higher rates.
This data wasn't strong enough or weak enough to really sway any decision the FED may have already had on the table, so I think what ever they had planned for September will still happen, whether that be tapering or, holding back till later on in the year.
Into the mix today was the news that the Russians would support Syria in the face of any military, this pushed Stocks down and Bonds up, and added extra spice to this market.
This Syria situation is going to be a major talking point for weeks to come as it seems likely the US will attack, and we know the Markets don't like that.
Looking forward its now all about the FOMC meeting mid September, and until then we will have alot of speculative trading, as traders position themselves before the number. This will be the main focal point, and so each piece of data coming out will be closely looked at coming up the meeting. So worth keeping an eye out for them all. I think we will now range in these Spreads until there is significant data to push it into new territory, so ill be looking to scalp as I did today, after yesterdays big steepening.
Next week is a pretty light week in terms of data, we have retail sales on Friday, but other then that not much else out so much of the move will be dictated by ongoing Syria talk and FED talk.
This data wasn't strong enough or weak enough to really sway any decision the FED may have already had on the table, so I think what ever they had planned for September will still happen, whether that be tapering or, holding back till later on in the year.
Into the mix today was the news that the Russians would support Syria in the face of any military, this pushed Stocks down and Bonds up, and added extra spice to this market.
This Syria situation is going to be a major talking point for weeks to come as it seems likely the US will attack, and we know the Markets don't like that.
Looking forward its now all about the FOMC meeting mid September, and until then we will have alot of speculative trading, as traders position themselves before the number. This will be the main focal point, and so each piece of data coming out will be closely looked at coming up the meeting. So worth keeping an eye out for them all. I think we will now range in these Spreads until there is significant data to push it into new territory, so ill be looking to scalp as I did today, after yesterdays big steepening.
Next week is a pretty light week in terms of data, we have retail sales on Friday, but other then that not much else out so much of the move will be dictated by ongoing Syria talk and FED talk.
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