Danske Markets

The major story in the global financial markets this week has undoubtedly been the major and sudden drop in gold prices. There are a number of reasons for the drop in gold prices, but none of them are...

We have for argued for some time that gold was in a bubble with prices well above where ‘fundamentals’ would suggest that prices would have to come down. The catalyst for the price drop in...

For the past couple of quarters we have had a bullish view on the economy and risk markets. This has been reflected in our trade recommendations via carry exposure and short positions in the...

The title for this post is relevant, as we admit that we seriously misread the Riksbank this time and that market pricing was a better proxy for what it would say. What makes things worse is that we...

The Riksbank's dilemma is that the repo rate that stabilises household debt is not the same as the rate that fulfils the inflation target.There is a risk of accelerating household credit growth in...

Italian presidential vote still inconclusive -- third round of voting begins today.Growth worries persist as soft data and downbeat earnings weigh on sentiment.Markets OvernightItalian Presidential...

A central market theme is what the spill-over effect of the aggressive Japanese QE program will be. It is still early days for the BoJ program, and it will take time before a clear pattern is...

Market Movers aheadThe Fed is expected to scale down rhetoric as the economy enters a soft patch.In the U.S., April non-farm payrolls are expected to show only a modest increase.In the euro area, a...

Italy's centrist parties seem to have reached last-minute deal on presidential candidateWeidmann comments add to odds for an ECB rate cutAggressive BoJ easing triggers investor outflowSentiment swings...

IMF lowers its growth forecasts for most major economies.Focus on Chinese local authority debt intensifies.Risky assets bounced back yesterday, driven by earnings and soft Fed talk.Today's calendar is...

ReviewIn the press conference following the latest ECB meeting, Mario Draghi opened the door for a refi rate cut. We now expect this to happen, most likely at the next meeting in May.Since the...

Portugal is one of the poorest countries in the euro area with GDP per capita at 55% of the euro area average. Portugal has a long history of weak growth combined with large and permanent government...

As one of our FX Top Trades published on December 5, 2012, we suggested entering a RUB/CZK spot at 0.6246 and exiting at 0.6565. The rationales for the trade were intervention risks for the CZK loom,...

Financial markets' response to possible terrorist attack in Boston has been calmCommodity prices markedly lower across the board on concerns about global growthEquity markets are lower but have...

The latest IMM data covers the week from April 1 to April 9. Investors reduced short EUR positions: Non-commercial investors reduced net short EUR positions in the wake of the aggressive policy...

Except for the yen we have made very few major changes to our FX Forecasts compared to the view presented in FX Trends published on March 22. We stick to our overall view that the euro will gain...