Yesterday was the day that financial markets heard from several of the world’s major banks, with policy and interest rate decisions from the Bank of England and the European Central Bank, and early today the Bank of Japan weighed in as well. As forecasters had anticipated, all of the central banks stood pat, generally in wait-and-see mode to assess previous easing efforts, but not discounting the possibility of more easing ahead. Of the central banks, only the ECB was able to offer markets anything of value, saying that they were prepared to buy up Spanish debt as and when Spain’s government made an official request.
But it was a statement made by Spain’s central bank which was most notable but seemed to have slipped past investors’ focus. Yesterday, the governor of the Bank of Spain, Luis Maria Linde, dismissed the Spanish government’s budget which was presented late last week as too optimistic and not in line with independent forecasts. According to him, Spain’s economy is set to contract by 1.5% next year, not the 0.5% projection that the Spanish government has forecast. Linde believes that the government must consider still more measures so that deficit targets can be met, even beyond those proposals made by the Mariano Rajoy government.
Markets had priced in those decisions well ahead of the actual announcement and there was little movement in equities though the Euro edged higher. The EUR/USD is currently trading at 1.3006, and sentiment on OpenBook is bearish with 59% of traders selling against 41% buying. OpenBook guru NMarijus leads the trend with several open short positions; the guru has had several short positions hitting their respective TPs over the course of the past several days, with the most recent earning a 6% return. The guru has a large allocation in the EUR/USD pair, ranging between 96% and 100% over the past six months. As of now, the guru, who has 22,577 followers and 1,539 copiers, has realized equity over the last quarter was 5.5%, over the last six months 105.7% and for the last 12-months was 47.4%
But it was a statement made by Spain’s central bank which was most notable but seemed to have slipped past investors’ focus. Yesterday, the governor of the Bank of Spain, Luis Maria Linde, dismissed the Spanish government’s budget which was presented late last week as too optimistic and not in line with independent forecasts. According to him, Spain’s economy is set to contract by 1.5% next year, not the 0.5% projection that the Spanish government has forecast. Linde believes that the government must consider still more measures so that deficit targets can be met, even beyond those proposals made by the Mariano Rajoy government.
Markets had priced in those decisions well ahead of the actual announcement and there was little movement in equities though the Euro edged higher. The EUR/USD is currently trading at 1.3006, and sentiment on OpenBook is bearish with 59% of traders selling against 41% buying. OpenBook guru NMarijus leads the trend with several open short positions; the guru has had several short positions hitting their respective TPs over the course of the past several days, with the most recent earning a 6% return. The guru has a large allocation in the EUR/USD pair, ranging between 96% and 100% over the past six months. As of now, the guru, who has 22,577 followers and 1,539 copiers, has realized equity over the last quarter was 5.5%, over the last six months 105.7% and for the last 12-months was 47.4%
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