Tapas Strickland

Tapas Strickland

“Tapas is an Economist within Global Markets Research at the National Australia Bank (NAB). ”

Tapas joined NAB after having spent 6 years at the Reserve Bank of Australia. He writes for the Bank on the economy and on financial markets. At the Reserve Bank of Australia he held positions in domestic analysis and in international financial markets. He also worked as an economic adviser to the Department of Prime Minister and Cabinet, advising the Gillard, Rudd and Abbott governments


Yesterday’s song title was Start me up by the Rolling Stones and it still seems an apt description with the risk‑on tone continuing overnight.

A broad risk on rally that started in the Asia continued overnight driven by expectations of a lower damage bill from Hurricane Irma and the absence of geopolitical headlines with North Korea not launching an ICBM on Saturday as many had feared it would.

I don’t care, I love it was the electro pop song of 2012. So it was with the market reaction to the ECB meeting overnight with the Euro higher (+0.9% to 1.2023) and German Bund yields lower (-4.0bps to 0.31%).

Consumer confidence – personal finances weighing.

It was another FX dominated session with the standout performer being the Canadian Dollar, up 1.1% after stellar Q2 GDP figures.

The US dollar rose 0.6% across the board overnight in reaction to stronger than expected US GDP growth and a stellar ADP payrolls print.

It was a very quiet session overnight with little data of note.

Dual-citizenship crisis – government’s majority still likely ok.

The USD rally ground to a halt overnight amid continued US political machinations and uncertainty over the trajectory for inflation in the latest FOMC Minutes.

The Aussie was slightly weaker at -0.5% with weaker than expected Chinese data weighing alongside a stronger US dollar.

Geopolitical tensions surrounding North Korea dominated the overnight session. However, market moves were contained following a winding back in rhetoric by US Administration officials.

In terms of market moves, most action happened in bonds. The bond sell-off continued overnight, underpinned by a weak French 30-year bond auction.

Lift was Shannon Noll’s first post Australian Idol hit. The lyrics “seems like forever that you’ve been falling, it’s time to move on” are an apt description of the mood of central banks, which have been removing expectations of further policy easing and getting the market into thinking of central banks tightening policy. This theme continued overnight with comments from the Bank of Canada’s Poloz and Bank of England’s Carney.

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