Even a dead cat will bounce if you drop it from high enough, the old saying goes…
Looks like we are getting a bounce in risk assets this morning after days of pressure but the fundamental outlook hasn’t changed very much.
Greece remain work in progress and Spain is on the front-pages, a place where it does not want to be…Weak Chinese imports made their trade surplus look flattering but China is growing cautious on the investment front, we learned overnight. Seems they’re not too enthused by European sovereign debt at the moment.
Cable is leading the bounce after the BOE stood pat this morning. No addition to QE is all well and good but the UK economy remains in recession with inflation still stubbornly high.
Offers in EUR/USD are layered up from 1.2980 to 1.300, traders report.
