Monthly Archives: August 2011
HSBC USA: US FOMC Meeting Preview – What can the Fed do?
Following S&P’s decision to downgrade the sovereign credit rating for the US, Fed policymakers are unexpectedly faced with a meltdown in the stock market and worries about a double-dip recession. Since the stock market decline is not disrupting the banking system, the FOMC is likely to focus on economic conditions in formulating policy. Most FOMC […]
FX DAILY STRATEGIST: Asia – 09 Aug 2011
Markets lose confidence in global recovery FOMC up, but no magic bullets China data key for Asia session, AUD in particular SEK still looks exposed in Europe.
FX Comment: The ECB, ist bazooka and the Swiss franc
The ECB has started to buy Italian and Spanish government bonds, showing off what some have called the central bank’s ‘bazooka’. The question is why the markets have not been more impressed. The single biggest reason for the lack of enthusiasm in the market may be the relatively small size of the interventions so far, […]
Swiss gov comments (from extraordinary meeting)
*SWISS GOVERNMENT MEETS IN EXTRAORDINARY MEETING OVER FRANC *SWISS GOVERNMENT SAYS FRANC MASSIVELY OVERVALUED *SWISS GOVERNMENT SAYS MONETARY POLICY MEASURES ARE NECESSARY
FX DAILY STRATEGIST: US – 08 August 2011
After S&P US Downgrade, ECB response narrows Italian-German bond spread significantly. Markets will test ECB’s commitment. FOMC statement, China data, are other main event risks. Latter could grant a reprieve from further AUD sell-off.
US downgrade: Implications for FX
The S&P ratings agency downgraded the US long-term sovereign credit rating from AAA to AA+ with a negative outlook on 5 August. What does it mean for global FX? In our view, there are three issues to consider: what does it imply for risk appetite in the short run, what will the policy response be […]
Behavioral Finance: Daily Forex Outlook: This is no panic
EUR/USD (1.4325) S&P downgraded the US credit rating one notch late on Friday, launching a financial press frenzy about an inevitable market crash on Monday. US Treasury Secretary Timothy Geithner said that S&P showed terrible judgement and has handled themselves very poorly.
Daily FX Technical Strategy – Risk rout
News over the weekend completely swamped the impact of better than expected NFP numbers. Wholesale risk reduction has taken hold with material chart damage inflicted on European and Asian equity markets.
FX DAILY STRATEGIST: Europe – 08 August 2011
After S&P US Downgrade, ECB response in focus and could help EURUSD up to 1.4500. See Market Focus on p.3 for our take on S&P’s action. FOMC statement, China data, are other main event risks. Latter could grant a reprieve from further AUD sell-off. After S&P downgraded the US over the weekend, financial markets have […]
What matters today (Asia edition)
Developed macro 1. Market is likely to start with ‘risk-off mode’ following the downgrade of S&P 2. The ECB hints that it is ready to buy more bonds in markets 3. The G7 agreed to take actions to stabilize markets and inject liquidity if needed 4. Japan’s current account surplus widened in June.
HSBC FI – ECB intervention, reflecting on US
Spain and Italy take new measures, ECB to intervene In a statement released on Sunday the ECB signalled that it is ready to buy Italian and Spanish government bonds after the announcements made by both countries on fiscal and economic reforms. The Central Bank stressed that it ‘will actively implement its Securities Markets Programme’ and […]
European FX Daily – ECB signals it will buy Italian and Spanish bonds
– Asian markets fell 2.0%-6% – G7 pledged to support financial stability possibly with coordinated action – ECB signals it will buy Italian and Spanish bonds – FOMC to announce further policy measures on Tuesday