Daily Morning Call

Election Special Global Morning Call – #SaxoStrats video

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  • John J Hardy, Saxo Bank head of FX strategy:
  • The markets have already drawn their conclusion 
  • USD reaction is in-line with the expected pattern
  • The dollar is down against the safe-havens
  • USDJPY is mispriced, nothing has changed with the fundamentals
  • It'll be interesting to see what the next anti-establishment move is in Europe 
  • The clock is ticking on a Janet Yellen exit 

Steen Jakobsen, Saxo Bank chief economist and CIO:
  • I'm in Russia, which isn't at all surprised by Trump's victory 
  • This isn't about Trump winning, it's about Clinton losing again 
  • It's about anti-globalisation and the coming of age of the Berlin Wall generation 
  • People couldn't live with another 8 years of no change 
  • The popular vote in the US decided for Trump
  • This is a sea-change in the world of politics
  • If there's one thing Americans like, it's the feeling of being great
  • The probability of a US rate hike has dropped
Peter Garnry, Saxo Bank head of equity strategy:
  • We're going to see a replay of Brexit in markets today
  • Asia Pacific is down by 3.4%, lead by cyclicals
  • Asia Pacific financials are holding up much better than expected
  • We can expect a bloodbath in Mexican stocks
Ole Hansen, Saxo Bank head of commodity strategy:
  • Oil and copper are lower, gold sees a strong bid
  • Trump's pro-fossil fuels policies could see US oil production recover
  • Gold needs to close above $1,330 in order to signal a move to July high of $1,375
  • We've seen a big surge in gold volume already
Michael Boye, Saxo Bank fixed income specialist
  • Yields plummeting on the back of Trump's surprise win
  • US Treasuries short end is down, 2-yr has dropped 20 bps
  • Bunds may open at 164-plus with negative yield
  • Fed policy is completely up in the air
  • It's very difficult to see Yellen hiking onto this turmoil