NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

European Open: Macro Vacuum

Published 02/08/2023, 01:28 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
-
USD/CNY
-

Investors are trying to drum up the muster to get back into the soft landing trade, which means rates are still high, but rate volatility dies. Still in the back of their mind is that scorcher of an NFP suggesting there remains a risk of inflation coming back.

For the next little while, the central banks aren't as important as the economic data will be. With markets operating in a macro vacuum today, investors aren't exactly scrambling to put on risk. 

Forex is quite dull with EUR/USD trading choice most of the morning but failing to get a rise out of slightly better risk sentiment; however, with China reopening faltering on the back of an uptick in US-China frictions, seemingly taking the wind out of the FX market sails, action has been tepid.

Given the lack of carry factor, getting back in the saddle is challenging in Asia FX, even for currencies with strong export or tourism linkages to China. After all, you get paid well to hold dollars in the bank, so investors might wait for the Yuan to recover some of its mojos on growth catalysts before re-engaging.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.