We're already seeing light liquidity, and the data wasn't much of a focus.
Todd Elmer
If you look at this from a directional standpoint, I think you'd look to be short of dollars.
short
The Fed may become less comfortable offering guidance on the direction of interest rates. The market is going to watch to see if they remove 'measured.
direction guidance market interest comfortable
You still have the potential for aggressive hikes by the Bank of Canada and you still have support from commodities prices.
potential support canada
A lot of this comes on the back of year-end profit taking on what has been a successful position for the market.
market successful profit
This is a bit of consolidation ahead of the major data that we get tomorrow. The forecast for the data is relatively optimistic, although that optimistic outlook does not seem to be played out in the markets.
data optimistic tomorrow outlook
We're seeing a weaker dollar mainly because of position covering.
There are expectations for quantitative easing to end in April - that's our forecast too - but it will probably take several months (after that) before they begin tightening interest rates.
end expectations interest begin
light data focus
There has been a clear shift in ECB rhetoric and gears are shifting in favor of tighter policy.
favor rhetoric
It's clear that the market is becoming more aggressive for an end to Japan's 'quantitative easing'.
end market
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