Author: Piero Cingari

The Great Decoupling

The relationship between the British pound and Gilt-Treasury yield spreads has never been so far apart. Under normal market conditions, the exchange rate and bond yield spreads should move together. Currently, we are observing non-linear effects in UK financial assets.   Gilt yields have gone through the roof and the pound is plummeting because investors […]

EUR/USD chart analysis: parity breached.

The euro broke below the parity level (1.0000) against the US dollar again on August 22, 2022, following a fresh wave of selling pressure prompted by deteriorating risk sentiment in Europe. The recent price action in EUR/USD hasn’t been driven by the widening of interest rate differentials between the Fed and the ECB, but rather by the widening price […]

Gas Crisis continued…

Emergency rate hikes by the ECB and BoE wouldn’t be detached with the current situation, in order to prevent further depreciation of the euro and the pound. The need to import expensive LNG from abroad, to compensate for Russia’s gas shortfall, is disrupting UK and EU trade flows, both of which are showing record-high trade […]