Photo: AP Images
Citi’s currency guru Steven Englander has put out a note on the big issues that traders are debating right now.They are.
1) Is the euro bad or simply boring?
2) The China hard/soft landing and its implications for risk
3) Is Bernanke’s glass half-full or all empty?
4) Can the US and USD bounce when the rest of the world sinks?
5) The silence of the central banks
6) Is Japan more than a US rates story?
Some of these might sound a little wonky, so let’s clarify.
On the euro question, everybody hates it as a concept, but people don’t feel strongly about its direction one way or another.
The China, Bernanke, and US questions are fairly straightforward.
As for the central banks question, traders wonder whether the worlds central banks are done diversifying away from dollars. And on Japan, the quesiton is whether the yen will move based on some other factor besides the gap between US and Japanese interest rates (i.e. the BoJ and the Japanese trade situation).
Anyway, all these questions are interesting, and they’re more interesting than the typical mix of gas prices, Europe, and China you usually get in discussions about big issues of the day.