Sterling Reverses Lower on BOE – Marc to Market Edit The market heard a dovish Bank of England today and sent sterling down by around than one percent. Initially sterling had reached its highest level since the US election; extending its recent rally a little through $1.27, but has now reversed lower. A close below yesterday’s …
The rise of interest rates in Europe have seen premiums over Germany increase. This is not unusual. Often the intra-European spreads are sensitive to the underlying direction of rates. The premiums often narrow in a falling rate environment and widen when rates are rising. It is one thing for the Italian or Portuguese premium …
Great Graphic: French Premium over Germany Continues to Grow Read More »
The US dollar remains on its back foot despite the stronger than expected ADP job estimate and the FOMC that said nothing to dissuade investors that it will be gradually raising rates this year. Japanese equities tumbled more than 1% while the 10-year JGB yield rose above 10 bp without eliciting a response from …