Hints and tips:
...Simon Derrick at BNY Mellon argues the pronounced drop in Treasury yields and expectations of Fed rate cuts does not explain all the recent selling pressure seen in the reserve currency....
...Bank of America Merrill Lynch note: “Valuations still look expensive on earnings, but look cheap on growth, cash flow and relative to bonds.”...
...A steady RMB with 2008 echoes — Simon Derrick at BNY Mellon makes an interesting observation about China’s renminbi....
...Analysts at Bank of America Merrill Lynch sum up the current mood: “Needless to say, as the Fed’s interests are aligned with investors in risky assets, the US economy is strong with little recession risks...
...Bank of America Merrill Lynch note: “Our analysis of the actual performance since April 2018 (when the USD rally began) flags three currencies with ‘catch-up’ potential — JPY, GBP and AUD, although for...
...Simon Derrick, chief currency strategist at BNY Mellon, notes: “Since the start of tapering by the Fed in late 2013, US equity markets have developed a particularly close relationship with moves in the US...
...“Big dollar moves tend to drown out everything else,” says Simon Derrick of BNY Mellon. Meanwhile, the pound’s value against the euro has “gone sideways” since the summer, he adds....
...So a large majority for Mrs May is no guarantee that the pound will continue its recent rally against the dollar, said Kamal Sharma at Bank of America Merrill Lynch....
...“Ultimately, the issue is still how effectively the UK can deal with its large current account deficit,” says Mr Derrick....
...Similarly, Simon Derrick of BNY Mellon wonders if that Lancaster House speech lulled investors into “a false sense of security”....
...“Investors have taken news about Article 50, and there’s been a lot, in their stride,” says Simon Derrick of BNY Mellon....
...“We think the BoE should over-egg stimulus: do too much, do it early, and do everything,” said Gilles Moec, Europe economist at Bank of America Merrill Lynch....
...However, Mr Derrick suggested policymakers go big or go home....
...Simon Derrick of Bank of New York Mellon says the dollar has often reacted on debate nights down the years....
...Goldman Sachs and Bank of America Merrill Lynch also shifted the timing of their rate calls later this year....
...“Gold is the new black,” according to Bank of America Merrill Lynch analysts, pointing out that three-week inflows into the metal from investors are running at their highest since the middle of 2009....
...Simon Derrick at BNY Mellon also points out that the strains are spreading far and wide....
...Speculative money, says Shusuke Yamada, chief Japan FX strategist at Bank of America Merrill Lynch, could once again be the deciding factor....
...“If you are too cautious and you allow deflation to set in, it is very hard to control,” Gilles Moec, chief European economist at Bank of America Merrill Lynch....
...Michael Hartnett, chief investment strategist at Bank of America Merrill Lynch says: The market is starved for yield and investors have poured money into any bond anywhere that offers a coupon....
...Bank of America Merrill Lynch’s Athanasios Vamvakidis took a stab at where exactly the euro’s stress levels actually lie (with our emphasis): Equilibrium estimates for the Eurozone as a whole suggest that...
...Francisco Blanch, head of global commodities research at Bank of America Merrill Lynch, raised his average forecast for Brent in the second quarter of 2011 to $122 a barrel from $86....
...Simon Derrick, chief currency strategist at BNY Mellon, said: “Higher inflation and slow growth could hurt sterling. We could see stagflation lite.”...
...“What’s going on with Greece is emblematic of bigger sovereign problems,” said David Bianco, chief equity strategist at Bank of America Merrill Lynch....
...“For the UK, fresh concerns about the key banking sector have fed through into broader concerns about the outlook for the economy,” Mr Derrick said....
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