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9 Sep 2013
Flash: Four themes, one trading opportunity – BAML
FXstreet.com (London) - David Woo, Strategist at Bank of America Merrill Lynch notes an opportunity ahead.
Key Quotes:
"Reduced uncertainty around the September FOMC meeting should bring down interest rate volatility".
"The fact that geopolitical risk has subsided in the very near-term should also help reduce the perceived riskiness of US assets".
"This should support foreign investor appetite for new corporate issuance in September".
"At the same time, speculative conviction in higher US Treasury yields and dollar is increasing without positioning being extreme".
"This should help support the USD, especially against the EUR and JPY, as foreign inflows are most likely to come from Europe and Japan".
Key Quotes:
"Reduced uncertainty around the September FOMC meeting should bring down interest rate volatility".
"The fact that geopolitical risk has subsided in the very near-term should also help reduce the perceived riskiness of US assets".
"This should support foreign investor appetite for new corporate issuance in September".
"At the same time, speculative conviction in higher US Treasury yields and dollar is increasing without positioning being extreme".
"This should help support the USD, especially against the EUR and JPY, as foreign inflows are most likely to come from Europe and Japan".