So today when I got into work, I read the headline: ‘RTRS: a debt swap agreement is largely in place but Greece must first pledge tough reforms’ I immediately thought to myself ‘yeah fucking right’. But, not long after I was proved wrong by rallying indices and peripheral yields easing with the BTP future up 2 points. And now I’m hearing: ‘RTRS: PSI deal just a 'formal step' away’.
Indices are setting off stops, with a lack of sellers for obvious reasons.
Bunds etc have held in well due to a lot of people caught short in the market.
Euribor has kept a firm bid; I also think that this is down to short supporting it.
TED is holding securely, I think this is for a mixture of reasons. Shorts caught in Bor, easing LIBOR, and weak Schatz for obvious reasons.
Short Sterling saw some humongous selling, with spreads gaining a firm bid. As the Sun would say ‘a source’ is telling me that a big trader from a famous German bank has decided to unwind his books today.
Oil is bloody moving around! There was a spike yesterday just less than $2, this was rumoured to be a fat finger. Oil is currently toying between toying the US and Chinese data and on the flip side the shit storm in Europe. The market is making big swings on the back of the news stories we are hearing, good news from Europe is helping it regain some buyers.
EUR/CHF has seen some keen selling. It currently trades at 1.2045 which is pretty close to the SNB’s barrier at 1.20. I am also hearing rumours from ‘sources’ that some brokerages are not accepting stops between 1.20 and 1.17 because they have ‘too many’. Now we have to assume that the SNB will defend it the first time BUT what if a big bear stampede goes on in late NY time or even Asia/OZ time?? Be aware! However I’m sure the SNB are too stupid and will have someone working at night!
No comments:
Post a Comment