Here we are at the back end of all these cycle points and bears have come up empty.
The vulnerable euro tumbled into the trading week under renewed selling pressure, thanks to brewing political chaos in Catalonia.
EUR lower ahead of Thursday’s ECB QE announcement; IBEX stumbles again as Madrid prepares to impose direct rule on Catalonia; Yen slips as Abe secures supermajority.
Trump tax plans add support to already convincing stock market rally; IBEX lags behind as Madrid moves to impose direct rule over Catalonia; GBP jumps on optimistic May comments after meeting with EU-27.
Sterling found itself under immediate selling pressure on Thursday morning after British retail sales tumbled in September.
Earnings could support equity market rally; UK data eyed as BoE ponders rate hike; IBEX underperforms as Puigdemont side-steps independence request.
The euro has started the new week on the back foot, while Spain’s Ibex index bucked the trend of an otherwise slightly positive day in the stock markets in Europe.
When the Federal Reserve met on 19-20 September, it announced the start of winding down the $4.5billion balance sheet and maintained plans for a third rate hike in 2017.
The euro has been able to extend its gains after the Catalan president suspended the declaration of independence from Spain on Tuesday, in a confusing statement.
Spanish assets under pressure on Catalonia independence rumours; GBP rebounds on decent economic reports; gold remains well supported despite falling 5% from last month’s highs; FOMC speeches eyed after bank holiday weekend.