Why volatility is bad news for investment banks Recent market volatility isn’t good news for investment banks, JPMorgan’s Kian Abouhossein and team argued, and leaves Goldman Sachs and Morgan Stanley near the bottom of their pecking order. They explain: "Although volatility is good for investment banks, recent market turmoil has led to a spike in market volatility (avg VIX +100% since 15 Aug) which poses some residual short positioning risks such as correlation. Generally ...
"USD: Increasing Sensitivity to Inflation. Neutral We remain medium-term USD bulls, but we continue to believe USD will struggle in the near term. The FOMC meeting this week has changed the near-term outlook as a more dovish than expected Fed has made front end yield differentials less USD supportive. We believe inflation readings will have more importance with employment bouncing back but core inflation remaining low. Should inflation start materially ...
Morgan Stanley Chart Of The Week - EURUSD On the long-term EUR/USD Chart "Despite the corrective rebound developed since early March, EURUSD remains within a long term down trend, which accelerated from June of last year. Indeed, this move lower over the past year forms part of a C wave decline within a broad multi year corrective structure which has developed since the 1.6038 peak of 2008. The pace of decline over the past year is typical for a C wave. This suggests ...
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