While risk trends weren't unmoored by a wave of event risk that included a Fed rate decision, UK call for more BoE stimulus and Cyprus hand-wringing; the fundamental backdrop is considerably more volatile. For those looking for immediate satisfaction - like myself - in short-term volatility, the FOMC rate decision both placed a cap on activity before its release and Chairman Bernanke's evasion of QE exit questions left the fuse for fear unlit for another day. However, the mix between investor sentiment and competitive stimulus as catalysts leave these markets extremely combustible. In today's video, we discuss the importance of the Fed's bearings, the unresolved tension in Cyprus, the stimulus outlook for the UK and the dormant dragon in the Bank of Japan - as well as the trade opportunities behind all of these themes.
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