Massive risk off ahead of Fed Chair Yellen’s testimony – Lloyds Bank

Research Team at Lloyds Bank, suggests that an awful start to the week ahead of Fed Chair Yellen’s testimony Wednesday and Thursday.

Key Quotes

“Equity and credit markets, especially in Europe, led the way down, which was picked up in the US and Asia overnight (Nikkei down over 5%). This has prompted a move to safe havens, with government bonds, JPY, EUR, CHF and gold all benefiting.

Japanese 10-year yields moved negative for the first time ever. Sterling is not benefiting, which has seen EURGBP extend to new highs in its 3-month rally from 0.7000. German industrial production has already been released and a lot weaker than expected, which has seen the EUR come under a little pressure.

We have an IEA oil report (OPEC tomorrow) which is worth noting, as further pressure on crude oil prices will add to the already poor risk sentiment environment. In the US, the focus will also be on the New Hampshire primary.”

Research Team at Lloyds Bank, suggests that an awful start to the week ahead of Fed Chair Yellen’s testimony Wednesday and Thursday.

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