 It was another volatile week with multiple theme working on the markets. US-China trade truce, arrest of Chinese business executive, stock market routs, treasury yield free fall, US yield curve inversion, weak economic data and global slow down, OPEC+ production cut, UK Brexit parliament debate, Italy budget. All have a hand in market volatility. Commodity currencies ended as the weakest ones. Australia lead the way with surprisingly weak Q3 GDP figure. Canadian Dollar was additionally pressured by BoC and oil, but saved by strong job data. Swiss Franc was the strongest one for the week, followed by Japanese Yen, on risk aversion. Mild weakest in emerging market currency like Turkish Lira gave the Franc a slight upper hand. Euro, Dollar and Sterling were mixed. Many of the theme have not concluded yet. Markets will be eager to see more progress in the 90-day US-China trade talks. Brexit vote will be held on Tuesday. Italy may or may not submit its revised 2019 budget. ECB will meet on Thursday. Oil could be under pressure again after the production cut. And, yield and stocks are continuous theme. |
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