various asset classes, speculators have been throwing in the towel either because of profit-taking (USD short) or short-covering (stocks and bonds). In the.S., the market witnessed one of the biggest short-covering scrambles.S. The same applies to the eurozones periphery debt, with investors being too bullish, having priced in too much good news for Italian, Greek, and Spanish debt in particular. Many do expect the BoEs Monetary Policy Committee (MPC) to act next month by tightening lending criteria - expect June 26 to have the markets full attention for those revelations. 10-year yields seems to be back in play again today. This week's short-lived nature of buying would suggest that the market is somewhat uncomfortable to put new money to work in these areas; investors prefer to trim long positions. The April number.8, year-over-year, was slightly above March's.6, however, the print is unlikely to influence Governor Mark Carney at the Bank of England (BoE) on rates. The rise was mainly due to the base effects. Cable did threaten.6871 immediately after the print; however, subsequent profit-taking on GBP longs has managed to push the currency back by 50 cents. Lower commodity prices and a stronger pound (1.6830) would suggest that inflation is likely to remain subdued for some months.
It is not investment advice or a solution to buy or sell securities. The correlation between JPY and.S. For instance, the market became too bearish.S. Opinions are the authors; not necessarily that of oanda Corporation or any of its affiliates, subsidiaries, officers or directors. This article is for general information purposes only. Inflation number this morning. British Inflation Rises, as expected, fresh data delivered a higher.K. Falling Bond Yields Rain Down, last week's theme was the 'pain' trade vulnerability of trades where positioning remained overweight/extreme dominated by the long peripheral bond-trade exit. Last week closed out with yields aggressively backing. Easter was in late April versus March last year, and transport costs typically rise over the holiday period.
Real GDP (Q3) preliminary.
Industrial output (September) final.