Our view over the past few quarters has been that EURUSD should be rangebound, as the cyclical outperformance of the US economy is offset by the eurozone’s relatively better balance of payments position.
As of last week, the partial government shutdown is officially the longest shutdown on record.
A greater percentage of negative yielding bonds has reignited the hunt for yield as investors look for higher yields in riskier asset classes.
The U.S. Federal Reserve (the Fed) has called a halt to the balance sheet reduction program earlier, and at a higher terminal level, than investors first anticipated.
Equities continue to look attractive relative to fixed income, and could very well move higher in the short-term given firmer economic data and a Fed on hold.
This week the House of Commons demonstrated that a clear majority of Members of Parliament (MPs) are not willing to leave the EU without a deal.
We continue to believe that no UK politician can secure a better deal simply because there is no other solution to the Irish Border.
Market sentiment towards the Chinese currency has shifted significantly