From another thread, another forum.
Above all the yen is expected to get a lot stronger sending nekkei further down in thecoming weeks.
Make your own decisions wisely.
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Quote:
Originally Posted by MPP View Post
just caught this - any views on effects?
09:18 GBP/USD: Consolidating Gains Above 2.0100, Fed Rumour Underpins London, March 7. Cable is consolidating gains to an early Europe 11-week peak of 2.0160, with a rumour that the Fed might deliver an emergency Fed Funds rate cut after today"s 13:30GMT US February employment release helping underpin. The market is understandably nervous about the risk of another emergency FF cut, in the light of the unscheduled 75bp cut delivered on January 22.
There is conjecture that if the Fed does deliver an emergency FF cut today, then it is most likely to be a 50bp reduction to 2.5%--and that this could be followed by a 25bp cut to 2.25% at the next scheduled FOMC meeting on March 18 (the FOMC followed up the 75bp Jan 22 cut with a 50bp cut on Jan 30).
Some option-related supply might emerge ahead of 2.0200 if cable extends north towards the level. There is speculation that an exotic option barrier might reside at 2.0200. Confirmed exotic option exposure is located at 2.0250 and 2.0300. Sterling support points include 2.0100 (former option barrier level) and 2.0082 (today"s Asian session base). [email protected]
Quote:
Originally Posted by DutchTrader View Post
Market rumours are circulating of an [EMERGENCY RATE CUT] by the Fed on Frid mrg, soon after the release of the US jobs rpt, following Thurs night's heightened turmoil in the credit mkts. The credit crunch is now said to be turning into a new and more dangerous phase, with news that mortgage lender Thornburg and invt firm Carlyle Capital had both missed margin calls, stoking fears over a wave of hedge fund liquidations and fire sales of assets. With both having significant holdings of mortgage backed securities, the latter mkt has literally collapsed, with sprds widening out to record wide lvls. Libor spreads are also back out, whilst a frenzy of safe haven Tsy buying say the 2yr note dip below 1.5% to its lowest since March 2004. US s/t rate futures otherwise rallied to new highs after the Wall St close, boosting the implied chances of an aggressive 75bps cut by the Fed this mth to 88% vs 54% on Wed 22:12 GMT - [FED DISCOUNT WINDOW BORROWING] Primary credit borrowing at the Fed's Discount Window rose $186 mln on a weekly avg basis to $355 mln in the week ending Mar 5. However, borrowing on Wed was only $34 mln, down $649 mln from the prior Wed. The biggest reductions in borrowing were $331 mln in the San Francisco Federal Reserve District, $184 mln in NY, and $119 mln in the Cleveland District.
Above all the yen is expected to get a lot stronger sending nekkei further down in thecoming weeks.
Make your own decisions wisely.
----------
Quote:
Originally Posted by MPP View Post
just caught this - any views on effects?
09:18 GBP/USD: Consolidating Gains Above 2.0100, Fed Rumour Underpins London, March 7. Cable is consolidating gains to an early Europe 11-week peak of 2.0160, with a rumour that the Fed might deliver an emergency Fed Funds rate cut after today"s 13:30GMT US February employment release helping underpin. The market is understandably nervous about the risk of another emergency FF cut, in the light of the unscheduled 75bp cut delivered on January 22.
There is conjecture that if the Fed does deliver an emergency FF cut today, then it is most likely to be a 50bp reduction to 2.5%--and that this could be followed by a 25bp cut to 2.25% at the next scheduled FOMC meeting on March 18 (the FOMC followed up the 75bp Jan 22 cut with a 50bp cut on Jan 30).
Some option-related supply might emerge ahead of 2.0200 if cable extends north towards the level. There is speculation that an exotic option barrier might reside at 2.0200. Confirmed exotic option exposure is located at 2.0250 and 2.0300. Sterling support points include 2.0100 (former option barrier level) and 2.0082 (today"s Asian session base). [email protected]
Quote:
Originally Posted by DutchTrader View Post
Market rumours are circulating of an [EMERGENCY RATE CUT] by the Fed on Frid mrg, soon after the release of the US jobs rpt, following Thurs night's heightened turmoil in the credit mkts. The credit crunch is now said to be turning into a new and more dangerous phase, with news that mortgage lender Thornburg and invt firm Carlyle Capital had both missed margin calls, stoking fears over a wave of hedge fund liquidations and fire sales of assets. With both having significant holdings of mortgage backed securities, the latter mkt has literally collapsed, with sprds widening out to record wide lvls. Libor spreads are also back out, whilst a frenzy of safe haven Tsy buying say the 2yr note dip below 1.5% to its lowest since March 2004. US s/t rate futures otherwise rallied to new highs after the Wall St close, boosting the implied chances of an aggressive 75bps cut by the Fed this mth to 88% vs 54% on Wed 22:12 GMT - [FED DISCOUNT WINDOW BORROWING] Primary credit borrowing at the Fed's Discount Window rose $186 mln on a weekly avg basis to $355 mln in the week ending Mar 5. However, borrowing on Wed was only $34 mln, down $649 mln from the prior Wed. The biggest reductions in borrowing were $331 mln in the San Francisco Federal Reserve District, $184 mln in NY, and $119 mln in the Cleveland District.
