04 December 2009

Question : Transition Point ?

Given improving NFP (impossible to dis-prove until next month), I wonder if we are anywhere near to moving away from current relationship of :=
  • increased risk appetite or better data => higher stocks + lower USD (funding currency)
to :=
  • increased risk appetite or better data =>higher stocks + higher USD (increased interest rate expectations)
[eventually we get to : better data => higher rates + lower stocks]

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