Niels Christensen

It's a positive environment for the equity markets. by Niels Christensen

It's a positive environment for the equity markets.

Niels Christensen

All in all it's a positive environment for the equity markets. by Niels Christensen

All in all it's a positive environment for the equity markets.

Niels Christensen

Looking at the U.S. economic data, everything is looking quite positive. No one expects higher interest rates to be a brake on economic growth.

Niels Christensen

With policy easing speculation gaining ground and the Finance Minister talking down the yen, it is clear they do not want a stronger currency.

Niels Christensen

It is quite amazing how oil prices have recovered from Monday's lows. That is shoring up risk appetite and pushing up commodity-linked currencies, as long as oil remains above $43 a barrel we think commodity currencies will remain supported.

Niels Christensen

The poor Chinese data is fuelling risk aversion, but that is slowly giving way to some positioning adjustment before the ECB meeting, given expectations are so high that the ECB will ease policy, there is a chance that it could fall short and we could see a bounce in the euro.

Niels Christensen

We are seeing better risk appetite weighing on the yen, the focus is on the ISM report, and if, like the manufacturing survey, it is a good one, then we could see the dollar move higher.

Niels Christensen

There is a fair bit of nervousness going into the Fed meeting. Interest rate markets have postponed rate hikes in 2016 and 2017 so investors expect something dovish from the Fed, given the volatility in stock markets.

Niels Christensen

The market thinks the latest bout of risk aversion will drive the Fed to postpone a rate hike, that is weighing on the dollar, while the yen, the franc and the euro are all trading higher.

Niels Christensen

Stocks markets are in focus and absence of risk appetite is acting as a headwind to the dollar, having said that, with a September rate hike back in focus, I am biased towards more downside in the euro against the dollar.

Niels Christensen

We had a pretty big move up in the dollar, so it's natural that there is a pause especially with the U.S. calendar a bit empty and little in store to push Treasury yields higher today.

Niels Christensen

All these add to view that the ECB will have to act fast. Investors with long dollar positions will want to keep them and target recent lows in the euro.

Niels Christensen

The risk is on the downside for the euro after these comments, it could break below $1.20 since there is a risk of a very low inflation reading out of the euro zone next week.

Niels Christensen

It could break below $1.20 since there is a risk of a very low inflation reading out of the euro zone next week, that will just add to pressure on the ECB to take measures when it meets later this month.

Niels Christensen

The risk is on the downside for the euro after these comments, it could break below $1.20 since there is a risk of a very low inflation reading out of the euro zone next week. That will just add to pressure on the ECB to take measures when it meets later this month.

Niels Christensen