Show less
Morning Call: Softer dollar boosts commodities, stocks
21 September 2018 at 7:40 GMT
Morning Call: Markets stabilise as trade tensions ease
20 September 2018 at 8:28 GMT
Morning Call: Chinese shares surge as trade war rages on
19 September 2018 at 8:36 GMT
Today’s FX chart analysis - video
John J Hardy
18 September 2018 at 10:28 GMT
Morning Call: Trump hits China with tariff plan
18 September 2018 at 7:29 GMT
The week ahead in macro
Kay Van-Petersen
17 September 2018 at 8:11 GMT
Macro Monday week 38: Keep Global Macro and Carry On
Kay Van-Petersen
17 September 2018 at 8:02 GMT
Morning Call: US yield curve lifts, boosting dollar
17 September 2018 at 7:23 GMT
Technical analysis webinar – A view of the market: Larsson
Kim Cramer Larsson
12 September 2018 at 14:44 GMT
Morning Call: Chinese shares fall further
11 September 2018 at 8:36 GMT
Morning Call: USD, SEK in focus
10 September 2018 at 7:49 GMT
The week ahead in macro
Kay Van-Petersen
10 September 2018 at 7:37 GMT
Morning Call: Is Japan next?
07 September 2018 at 7:35 GMT
Video / 15 November 2017 at 8:55 GMT

From the Floor: Risk rising, EM bond yields spike — #SaxoStrats

   • Risk factors rise, equities and junk bonds lower
   • Euro up on strong German GDP release
   • Aussie dollar struggles on weak wage growth
   • Venezuela, South Africa, Zimbabwe sink EM bonds
   • Weak Swedish and Norwegian data impact currencies

By Michael McKenna

Equities sold off with commodities overnight while junk bonds are also feeling the pinch as risk assets retreat, reports Saxo Bank head of forex strategy John J Hardy.

The euro, meanwhile, is gaining ground on a strong German GDP beat Tuesday (0.8% quarterly growth versus 0.6% expected). In hardy's view, the pair to watch here is EURAUD as the Australian dollar is struggling on pallid wage growth.

"The downtrend in EURUSD also appears to be done," says Hardy, adding that the 113.00 level in USDJPY could be "the next shoe to drop" in the G3 space.


Create your own charts with SaxoTraderGO click here to learn more

Source: Saxo Bank 

Geopolitical risks are also on the rise, particularly in the emerging markets space where Saxo Bank global sales trading manager Althea Spinozzi points to the coup in Zimbabwe, continued (and related) unrest in South Africa, and the Venezuelan default as three major factors weighing down EM bonds.

"European core bonds, however, are higher amidst strong macro data," adds Spinozzi.

Finally, Hardy reports that the SEK and NOK are "imploding" after a disappointing CPI release out of Stockholm and poor GDP figures out of Oslo.

For more on the risk climate, EM bonds, and the developing situation in Saudi Arabia, listen to today's morning call in full via the link above.

Harare, Zimbabwe
   The Zimbabwean capital of Harare is now under direct military control. Photo: Shutterstock

Michael McKenna is senior editor at Saxo Bank


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail