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Risk appetite continues to build for “phase one” with GBP hit by the BoE doves
Although the immediate geopolitical risk of the Iran/US missile exchanges in Iraq has been put on the back burner for now, the issue will continue to rumble on. This is likely to be a drag on Treasury yields in the coming weeks however, for now the near term focus switches back to the trade dispute and to “phase one” again. On Wednesday, the US and China are expected to sign the first section of their trade agreement. Risk appetite is positive (the VIX hit its lowest in two weeks on Friday, whilst the Chinese yuan strength is at five month highs to drag USD/CNH under 6.90 this morning). The market is anticipating ... (full story)