-
Weekly preview - Eye of the storm
In relative terms, the week ahead should be a more subdued affair sandwiched between last week's ferocious Euro short-covering squeeze after the ECB meeting and next week's first Federal Reserve interest rate increase for nine years. Positioning will certainly have an important role to play, especially with liquidity starting to thin ahead of the year-end period. There will be the threat of deteriorating liquidity which will risk a squeeze on dollar funding and push the US currency higher. There will, however, also be strong interest in covering Euro shorts if there is any fresh sharp downward move in the single ... (full story)