Macro Morning

by Chris Becker

Last nights action on markets was interesting to say the least, and fun for this little black duck (although lack of sleep is hurting this morning). Monday nights in Europe and the US session seem to have a greater sense of volatility about them and last night was no different, as the complex reacted to the Occupy movement in Hong Kong and absorbed two significant data points.

First in Europe, deflation seems to be the base case as even Germany came in at dead flat for the month, up only 0.8% for the year. This perversely sent the Euro up intra-session on overbought USD strength was reversed but the currency union eventually finished below 1.27: