Last quote by Stefan Worrall
Stefan Worrall quotes
The market rallied impressively last week for a number of different reasons.
The market is in a state of significant anticipation. This is certainly crimping liquidity today because there is not a lot of substantial transactions going on in the market where you have this extraordinary volatile event.
Results are coming from certain districts of the U.K. that actually are fairly skewed one way or the other, and there is huge volatility in the pound and in the yen. I think that sort of set the tone for the morning.
I think it's hard to argue that the weakness we've seen in Japan this year has had to do with fears of a VAT hike and I think investors are much more focused on world events.
The rally we're experiencing today is based in part on the latest Brexit polls showing that the 'remain' votes have moved further ahead.
The market's initial reaction to the GDP data was a slight strengthening of the yen.
The yen has clearly shocked a lot of people with its aggressive strength this past week, but whether or not the negative sentiment is overdone won't be clear until we see the U.S. non-farm payrolls figures.
The U.S. dollar remains doggedly below 110 yen, which will cap any notions of a sustained rebound.
We've had a decidedly more bullish mood these last few days, with a bit of encouragement coming from oil prices, a bit of encouragement from China's trade data, and the yen is obviously playing a factor.
I don't think investors are expecting anything drastic from the BOJ, especially given the fact that they are meeting before the FOMC and will be reticent about making a big aggressive gamble ahead of a Fed meeting.
Following the selloff and the fears of recession that emerged early in the new year people pulled back aggressively from their previous expectations about how a rate hike from the Fed might unfold.