I think the market is a little lost this morning. Friday night saw the usual risk aversion play break down somewhat. Early on in London, after a bad day in the Asian equities and expecting a bad day to follow on the European markets they didnt do the usual and sell the risk currencies. In fact the risk currencies looked to have some reasonable support coming in despite the weaker outlook for equities and that was before the US had a caniption fit over the thought of nationalisation of banks (don’t get me started on that topic, suffice to say i am ALL FOR IT!!).
I think that has left people a little up in the air this morning because it may not simply be a case of following the equity markets to determng when add/remove risk trades.
Given there is no data to speak of out in Asia today it could be a quiet start to the week until we get some direction from Europe.
