Basically nothing happened today with commodities and stocks flat.
Bonds fell today. Seems like all of a sudden we are hearing more chatters of inflation fear – especially with the TIPS auction with negative yield. The question is : is this rising fear of inflation just a blip or a turning point? I will have to do some more research here. Frankly I don’t have an opinion yet. Economic data seems weak enough and Fed dovish enough that I think QE would be quite substantial.
USD was broadly strong with exception of GBP where Q3 GDP came in better than expected. But keep in mind this is 1-4 months old data. UK data has been surprisingly good for a while – deterioration has been seen in October and could worsen rapidly as austerity measures get implemented. This rise would probably lose out over the next day or two.
Tomorrow’s big data release is US durable goods order.
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