No Currency War Here, But You Got To Like the EURO Result

Capital Market is undergoing its self-regulated Q1 reality check of pitting financial markets progress against the real economy. The discouraging story surrounding the global real economy has resulted in risk-off trading strategies winning out. Perceived safe-haven assets such as the dollar and German bunds are rallying this morning after the more hawkish tone from the FOMC minutes and a series of softer data either side of the Atlantic disappoints.

Yesterday's minutes of the Federal Open Market Committee's meeting released shown that US policy makers are divided about the strategy behind 'helicopter' Ben's program of buying bonds until there is “substantial” improvement in a US labor market. Some policymakers are concerned that the central bank's 'easy' money policy could lead to further financial markets instability and making it will more difficult to exit such programs cleanly.

Rising fears over the potential costs from further QA could persuade Fed...