Monthly Archives: May 2011

There has been significant client interest and mixed analyst opinions in the market about how to read the recently announced consent solicitation suggested by Kazakh Gold.

BoC is today and almost no one thinks they’ll move, see market exps derived from curve below BoC expectations for a hike are: 0% priced for today 15% priced in for Jul19 17% priced in for Sep7 28% priced in for Oct25 35% priced in for Dec6

AUD traded poorly this am.. We have the soft GDP to come out tonight which is causing a few to pare back longs..

Summary Central Bank of Russia (CBR) raised deposit rate from 3.25% to 3.5% on its rate setting meeting on May 30. It left refinance and REPO rates on hold at 8.25% and 5.5%, respectively.

1346 in the S&P 500 is the key pivot for macro markets. If the index rallies above that level it is probable that a “risk on” environment will dominate.

Uncertain US growth trumps Greek debt concerns EU leaders continue to discuss further financial support for Greece with, according to yesterday’s Financial Times, demands for more direct international involvement in Greek economic policy, including influence over measures for tax collection and the privatization of government assets.

EUR USD (1.4380) A view of the eurozone in terms of risk presently reveals a rather jagged topography. In Italy the country’s economic growth is faltering, and Spain braces itself for contagion risk as it seeks to launch €3.5bn in two bond auctions on Thursday.

1.4340-50 breaks under the strain After a quiet day yesterday due to various Holidays, the key 1.4340-50 level in EURUSD was finally breached overnight in Asia, triggering stops and some early European buying.

Soon some healthy REAL MONEY inflows on the open here…USDTWD Macro adding to USDRUB shorts (via options too)

Turkish trade deficit reached USD 9.1bn in April vs. expectations of 9.8bn. The deficit is 64% higher than in April 2010.

News HU: Neutral – Government, banks announce action plan to save FX borrowers -in line with expectations (no agreement on bank tax) (p2) RU: Mixed – CBR hikes O/N depo rate by 25bp, leaves all other rates unchanged (p2) TK: Mixed – CBT says it reduces daily FX purchase auction to USD40mn from USD50mn (p1)