Macro Morning: Easter volatility

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by Chris Becker

Holidays and daylight saving changes can cause confusion or even disruption across global markets where in the last four days some observe Easter and others (particularly here in Asia) have not. Its taking some time for the algos (and me) to catch up!

Following the April Fools Day ructions, Friday night’s US unemployment report confused this even further with a genuinely bad print following the poor ISM survey which equated to risk markets seeing Fed rate rises pushed further out in the calendar as US Treasury yields rose bouncing off their lows.

Recapping the Easter trade in Asia over the break, the Shanghai Comp seems set to get to a 100% year-on-year return, rallying 1% following a solid non-manufacturing print on Friday. The Nikkei was open yesterday and lost a little ground, confused about the bad/not bad NFP print, but overnight futures caught up significantly showing this trend is still well intact (and my short swing trade petering out):

Chart Nikkei225, D1, 2015.04.06 22:41 UTC, VantageFX Pty Ltd., MetaTrader 4, Real
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