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One Trader Weighs In On Thursday’s Trio Of Risk Event Hellspawn

"All capable of moving things around. All capable of passing calmly by and spawning headlines of “all attention now turns to...”. The financial world equivalent of Mad Libs."

Obviously this week is all about Thursday. Elections in the UK, Comey testimony, and the ECB. We got a temporary reprieve from the psychological burden of having to wait four days to know our fate when Qatar stole the spotlight on Monday. But then again, that's only an accurate assessment if you believe geopolitical turmoil counts as a "reprieve" from other geopolitical turmoil. In any event, the market began to slowly turn its attention away from Doha and towards Thursday's terrible trio during the overnight session with risk-off sentiment manifesting itself in the usual place: USDJPY, which hit a six-month low: As we wrote on Sunday evening, "there are some potential land mines out there and it’s pretty clear that in all cases, FX will be the transmission mechanism be it in sterling, the euro, or, in the case of Comey’s testimony, USDJPY." Well on Tuesday, former FX trader Richard Breslow is out with his take on what's coming. Read his full note below... Via Bloomberg There seems to be a furious debate raging about just how momentous Thursday’s slate of news on hand is going to be. Correctly anticipating what will move markets and in what direction hasn’t been an
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1 comment on “One Trader Weighs In On Thursday’s Trio Of Risk Event Hellspawn

  1. Spunky McGregor says:

    Come on, H. I love coming here and perusing the articles; they entertain me. That is all news does anymore – it entertains. I don’t know if you want to blame Rupert Murdoch or Ted Turner for media environment we live in, but it all amounts to the same damn thing. Everything is a huge deal (even if it isn’t) until all of a sudden shit gets real and then we’re all riding in the same handbasket, postmarked for the 9th circle of hell. In my opinion, none of these things is going to make a dent in markets because the markets cannot be riled. It’s gospel now, we’re living it. The shame of it is that when everything is blown out of proportion it drowns out the signal.

    But…one of these days we’re going to wake up and it’s going to be real again, because something happened that no one anticipated. That is what makes this kind of behavior frightening, because it builds these irrational assumptions that eventually are proven wrong. I don’t know what’s going to pop the bubble this time, or when (if I did I wouldn’t be sharing) but I know it’s coming, and sadly, it won’t be anything on anyone’s radar. The resilience of our markets is overrated. I hope that our political systems prove to be more robust.

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