Cristian Maggio, Head of Emerging Markets Research at TD Securities, shares the market performance in the European session, noting that Bonds markets remained well bid while EUR/CHF moved higher.
Key Quotes
“European markets continue to adjust to the FOMC message from yesterday. Despite the Fed removing the ‘considerable time’ reference from its statement, markets seems to have taken the dovish view as the introduction of ‘international developments’ is a key source of concern. This has left the European bond markets well bid, with 10yr Gilts breaking through the 1.40% mark for the first time on record.”
“The knock on effect on the rest of the EZ is strong and visible, with yields nudging lower on pretty much all maturities, bar the peripherals that seem more reactive to Greek developments, i.e. yields going the opposite direction.”
“EURUSD is relatively stable at around 1.13 at the time of writing, after a modest move up in the Asian hours.”
“More remarkably, EURCHF has moved 1.6% higher to 1.0375, near the highest levels recorded since the SNB suppressed the floor. Nonetheless, the EUR remains almost 14% weaker to the franc.”
Key Quotes
“European markets continue to adjust to the FOMC message from yesterday. Despite the Fed removing the ‘considerable time’ reference from its statement, markets seems to have taken the dovish view as the introduction of ‘international developments’ is a key source of concern. This has left the European bond markets well bid, with 10yr Gilts breaking through the 1.40% mark for the first time on record.”
“The knock on effect on the rest of the EZ is strong and visible, with yields nudging lower on pretty much all maturities, bar the peripherals that seem more reactive to Greek developments, i.e. yields going the opposite direction.”
“EURUSD is relatively stable at around 1.13 at the time of writing, after a modest move up in the Asian hours.”
“More remarkably, EURCHF has moved 1.6% higher to 1.0375, near the highest levels recorded since the SNB suppressed the floor. Nonetheless, the EUR remains almost 14% weaker to the franc.”
