Last night’s macro in a word is terrible. China PMI and German manufacturing offer no relief for commodities and they are linked.
Below, we have a chart of the V2X, a Goldman product used to measure volatility in the EU. So it Europe still cheap, a sell, or should you trade it hard?
As we being the final session of the week the euro catches a bid against the U.S. dollar after euro zone leaders announced it will allow some of the troubled counties like France, Spain and Portugal to take additional time to lower their respective budget deficits easing some of the burden of austerity.
Economist Kenneth Rogoff is one of the great economic minds out there. His book, “This Time is Different” is probably the best read about the 2008 financial crisis and the structural issues surrounding it.
Apparently there is movement amongst euro zone leaders calling for a Euro bond as the hail Mary solution to the European Union’s problems. Whether it happened tomorrow or some time down the road, how would the EU implement such an asset?
Despite trader hopes to the contrary, the prospect of yet another round of apocalyptic headlines Greece is becoming a problem again as we shift into the bottom of half of week. The disappointment is once again sending commodity prices and confidence in the euro zone lower.
European banks like Paribas (BNPQY, quote), Unicredit (UNCFF, quote) and Credit Agricole (CRARY, quote) are soaring on relief after the Greek Parliament passed austerity measures. Although this is step one of many, the euro as well was lifted in overnight trading sending a traders a like a small ray of hope that the cloud of a very messy crisis lifts soon.
As the euro zone continues to scrabble to fix the Greek debt crisis, analysts have started fretting over whether Portugal may fail to manage its own cripplingly high borrowing rates. But there are great babies being thrown out with the bathwater.
Crude oil price is once again being held capture to geopolitical tension surrounding Iran’s threats of the shutting down the Strait of Hormuz. Saber rattling intensified from Iran as the U.S. and the EU begin boycotting Iran’s energy exports as trader watched the premium for oil climb.
To be or not to be, will Greece default or not? It is the question on every trader’s mind. Developments over the weekend threw cold water on the prospect that Greece will avoid a default, once again leaving traders disappointed and the euro on the defensive.