Spot curve and London bombs

[qazwsxedc]

Yesterday produced steepening and overall downward moves in the Short Sterling and Euribor curves. Any guesses as to whether that'll persist or whether we'll go back to business as usual in a day or two? Both would be reasonable explanations, either taking account of perceived uncertainty or of Londoners' dogged determination not to be cowed by the bombers.

Looking at how yesterday afternoon played out I wouldn't be surprised either way, but I wonder what the consensus is here.

 

[jmreeve]

Yesterday's equity market reaction was really quite strange.

In the longer term, we are in the middle of a consumer slump and yesterday's events is unlikely to put people in the mood to go out and spend lots of money. I think it will have a much larger dampening effect on the UK economy than is currently priced into the equity markets. I would guess the yield curve changes are a reflection of the longer term impact on consumer spending and the economy.

 

[shortsterling]

Short Sterling Trader

I have been working as a local for a few years. Recently I have had a really bad run and every trade I do seems to translate into a loss. Does anyone have any suggestion as to what to put on in the event the MPC minutes coming as bullish/bearish? Please help.

 

[jmreeve]

Don't put anything on.
If you are having a bad run and don't know which way to trade then don't trade.