{"id":60344,"date":"2012-07-31T16:35:05","date_gmt":"2012-07-31T06:35:05","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/07\/31\/risk-assets-squeeze-higher-again\/"},"modified":"2012-07-31T16:35:05","modified_gmt":"2012-07-31T06:35:05","slug":"risk-assets-squeeze-higher-again","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/07\/31\/risk-assets-squeeze-higher-again\/","title":{"rendered":"Risk Assets Squeeze Higher (Again)"},"content":{"rendered":"

\n\tBy Andrew Taylor, Market Strategist GFT<\/span><\/p>\n

\n\tTop Headlines<\/strong><\/p>\n

\n\to Main Events Schedule:<\/p>\n

\n\t· Wed – FOMC<\/span> meeting > seen as a non event<\/p>\n

\n\t· Thu – Eyes on ECB<\/span> action & Monti<\/span>\/Rajoy<\/span> meeting<\/p>\n

\n\t· Fri – Non Farm Payrolls<\/p>\n

\n\to AU Building Approvals data shows unexpected strength<\/p>\n

\n\to End of Month rebalance<\/span> points to slight USD selling<\/p>\n

\n\to Market Moves:<\/p>\n

\n\t· AUD sees solid support > Central Bank feel<\/p>\n

\n\t· EUR dips a little on whether ECB<\/span> will deliver<\/p>\n

\n\t· Equity markets receive continued boost on CB action<\/p>\n

\n\t· Gold remains at recent resistance looking for a break<\/p>\n

\n\t· WTi<\/span> and Copper tame<\/p>\n

\n\t <\/p>\n

\n\tOvernight Asian equity markets decided to tempt fate with higher moves contrary to the non-event US session. Perhaps being the only time zone without the Live Olympics to distract meant it was business as usual.<\/p>\n

\n\tThe current elevated levels equate to actions by the ECB<\/span> at Thursday’s meeting that will aid stressed bond markets, however, with two days still to go before the meeting, traders have now decided to revisit exactly what was said and rationalise<\/span> why they reversed their outlook. In a classic situation of ‘shoot first and ask questions later’, the market finds itself questioning if they have in fact overshot the mark based on comments that should be no surprise.<\/p>\n

\n\tTo put it into perspective, the market is under no illusions that an announcement by the ECB<\/span> will not be a game changer. The ECB<\/span> is limited in what they can offer (like all Central Banks) and Thursday’s actions will be designed purely to buy time for struggling economies. The question is then how quickly will the market return to its destined course post ECB<\/span> meeting? Well if the last FOMC<\/span> meeting in June is anything to go by, it won’t be very long. To refresh those risk bulls memories, this was when Operation Twist was extended and in a similar scenario, markets realised<\/span> that nothing had in fact changed, this saw initial profit takers fair best as they sent the markets snow ball south.<\/p>\n

\n\t <\/p>\n

\n\tOutlook<\/strong><\/p>\n

\n\tToday will see a raft of economic data across the region with German labor data and euro zone flash CPI figures the pick of the bunch. Traders are keen to spot any further cracks in the European engine room as it seems that disastrous economic effects on Germany is what could bring this spiraling situation to head.<\/p>\n

\n\t <\/p>\n

\n\tEconomic Events to watch:<\/strong><\/p>\n

\n\t0600 GE Jun Retail Trade<\/p>\n

\n\t0645 FR Jun Housing starts<\/p>\n

\n\t0645 FR Jun Household consumption expenditure in manufactured goods<\/p>\n

\n\t0645 FR Jun PPI<\/p>\n

\n\t0800 GE Jul Labour<\/span> market statistics (incl<\/span> unemployment)<\/p>\n

\n\t0900 EU Jul Flash Estimate euro area inflation<\/p>\n

\n\t0900 EU Jun Unemployment<\/p>\n

\n\t1000 FR Jun OECD CPI<\/p>\n

\n\tFor more intraday analysis and trade ideas, follow me on twitter @ATaylor_GFT<\/span><\/p>\n

\n\tAll views expressed are the author's and not by association FNArena's<\/span> (see our disclaimer).<\/p>\n

\n\tDisclaimer<\/strong><\/p>\n

\n\tTrading spot forex<\/span>, contracts for differences, and spread bets is risky and not suitable for everyone. All of these products (excluding Binary CFDs<\/span> and Binary Spread Bets) are leveraged, and you can lose more than your initial deposit. Don’t trade more than you can afford to lose. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful, and in accordance with applicable laws and regulations in such jurisdiction. The information provided here should not be relied upon as a substitute for extensive independent research before making your investment decisions. GFT<\/span> is merely providing this information for your general information and the information does not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision based upon any information contained within. Customer Service personnel communicate solely for administrative purposes in a clerical capacity and cannot discuss sales or dealing related questions. Technical Support personnel handle technical support questions only and cannot discuss sales or dealing related questions. The contents of this e-mail communication and any attachments are for informational purposes only and under no circumstances should they be construed as advice, an offer to sell, or a solicitation to buy any foreign currency, contract for differences or other derivative or over the counter product. Past results are not necessarily indicative of future results.<\/p>\n

\tGFT<\/span> refers to Global Futures & Forex<\/span>, Ltd. and all of its divisions, branches and subsidiaries, including Global Forex<\/span> Trading, GFT<\/span> Futures, FX360<\/span>, GFT<\/span> Global Markets Asia Pte<\/span>. Ltd., GFT<\/span> Global Markets UK Limited and GFT<\/span> DMCC<\/span>. Global Futures & Forex<\/span>, Ltd., doing business as Global Forex<\/span> Trading and as GFT<\/span> Futures, is registered with the U.S. Commodity Futures Trading Commission as a futures commission merchant, and is a member of the National Futures Association. In Japan, Global Futures & Forex<\/span>, Ltd. is registered with the Financial Services Agency as a financial instruments firm and is a member of the Financial Futures Association of Japan. In Australia, GFT<\/span> refers to Global Futures & Forex<\/span>, Ltd., ARBN<\/span> 103 508 461, Australian Financial Services License number 226625. For Australian investors, a Product Disclosure Statement (PDS<\/span>) is available from the company website www.gft.com.au. Interested parties should read and consider the PDS<\/span> before making any decision to deal in GFT<\/span> products.GFT is the issuer of these products. In the United Kingdom, GFT<\/span> is the business name of GFT<\/span> Global Markets UK Limited, which is registered in England and Wales (Registration No. 5394757), with registered address of 34th<\/span> Floor CGC<\/span> 34-03, 25 Canada Square, London E14<\/span> 5LQ<\/span>, and is authorised<\/span> and regulated by the Financial Services Authority (FSA). The FSA does not regulate Binary CFDs<\/span> or Binary Spread Bets. In Singapore, this information is made available to you by or for GFT<\/span> Global Markets Asia Pte<\/span>. Ltd. (Unique Entity Number 200717665N<\/span>). In Dubai, GFT<\/span> is the business name of GFT<\/span> DMCC<\/span>, where GFT<\/span> is Registered & Licensed as a FREEZONE<\/span> Company under the Rules and Regulations of DMCCA<\/span>, License Number DMCC-31136<\/span>.<\/p>\n

\tThe lion’s head logo, the lion’s head logo with GFT<\/span>, GFT<\/span>®, DealBook<\/span>®, FX 360°®, CFD<\/span> 360°®, Chart Studio®, Foresight-A.I.®, G3BO™<\/span> and DealWheel™<\/span> are either registered trademarks or trademarks of Global Futures & Forex<\/span>, Ltd., in the United States and\/or other countries. The absence of a name or logo in this list does not constitute a waiver of any and all intellectual property rights that Global Futures & Forex<\/span>, Ltd. has established in any of its trademarks, service marks or logos. All other trademarks, service marks or logos are the property of their respective owners. The different companies, and divisions and branches thereof, may perform services on each other's behalf. Therefore this email is sent to you on behalf of the company and\/or division or branch with which your account is maintained, regardless of the employer of the person sending the email. © 2012 Global Futures & Forex<\/span>, Ltd. All rights reserved.<\/em><\/p>\n

\n\tTechnical limitations<\/strong><\/p>\n

\n\tIf you are reading this story through a third party distribution channel and you cannot see charts included<\/span>, we apologise<\/span><\/span>, but technical limitations are to blame.<\/em><\/strong><\/p>\n

\n\tFind out why FNArena<\/span> subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Have investors seen this all before? GFT’s Andrew Taylor offers some perspective on this week’s rally on global equity markets.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[41,26],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/60344"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=60344"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/60344\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=60344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=60344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=60344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}