Monthly Archives: January 2012
UBS Morning Adviser Asia
Euro Rebound Continues EURUSD continued its rebound on Thursday, trading in a 1.2839-1.2972 range against the dollar on the back of strong auction results and hopes of a satisfactory conclusion to PSI talks in Greece. Spanish and French auctions were taken favorably by the markets and the euro pushed higher in the European session.
Three cheers for extend and pretend – or not?
This market is cheering global signs of extending and pretending from global governments and central banks. We know where it will all end, but the trouble is always figuring out how long the market wants to live in fantasy land.
CRUDE OIL ANALYSIS
Crude futures rose Thursday after weekly jobless claims fell to the lowest level since April, 2008, offering some optimism on the U.S. economy. Light, sweet crude for February delivery gained $1.09, or 1.1%, to recently trade at $101.68 a barrel on the New York Mercantile Exchange.
FX Daily Strategist: Europe
Markets focusing on the positive and seemingly ignoring Greek event risks…for now Risk in FX markets has continued to edge higher as the markets seems to focus on the positives out of Europe, with a successful Portuguese bills auction and news that the IMF will attempt to increase its lending capacity carrying the day. But […]
Behavioral Finance: Daily Forex Outlook : The tenuous rally in euro
EUR USD (1.2860) At first glance, the news that IMF is being put to work yet again to gather resources to tackle the eurozone crisis, looked positive, the euro rallied. However, what looked ostensibly positive actually also implied that the eurozone funding problems still exist and, worse, that none of the European countries were taking […]
UBS Morning Adviser America
Auctions Support Euro Spanish and French auctions were taken favorably by the markets and the euro pushed higher in the European session. EURUSD has now rallied 2 and a half big figures since Friday’s S&P downgrades and marginally riskpositive headlines are being taken well by investors.
EUR/SEK ANALYSIS
EUR/SEK to extend weakness to 8.7109 and 8.7006, as the sustained EUR downtrend pushes into fresh 10-month lows below 8.7838. A daily close below 8.7838 would upgrade the eight-week bear wave off the 9.2940 lower high, bringing the focus onto a 1.618 Fibonacci extension target at 8.7109 and leaving the important February 2011 reaction low […]
BUND ANALYSIS
German government bonds are lower Thursday but off their worst levels following Spanish bond auction results, which were seen as disappointing. Spain allotted E6.61bln total size in 4.25% 2016 Bono, 4.60% 2019 Obligacion and also the 5.85% 2022 Obligacion issues Thursday, and exceeded the target of E3.5bln to E4.5bln set by the Tesoro Publico. However, […]
GBP/USD ANALYSIS
GBP/USD closed in NY at $1.5438, off its extended recovery high of $1.5444. Rate traded the early part of Asia between $1.5423/38, as it consolidated Wednesday’s move, extending to $1.5446 into the Asian afternoon before easing ahead of the European open to hold between $1.5423/33.
EUR/USD ANALYSIS
EUR/USD closed in NY at $1.2864, having extended Wednesday’s rally through European highs of $1.2847 to $1.28655 during the afternoon session as talk swirled suggesting a Greek deal could be in place by Friday. Risk appetite remained in place into early Asia, allowing rate to push on to $1.2880.
GOLD ANALYSIS
Spot Gold is trading higher for a fourth consecutive day in Europe Thursday as the euro continues to rise against the dollar and physical bullion demand holds firm. Market participants say the yellow metal continues to take its cues from other markets, primarily EUR/USD, which has climbed to its highest level since Jan. 5. Gold […]
JPY ANALYSIS
The USD opened at Y76.83 and fell from, early highs of Y76.85 to Y76.72 before finding some support. EUR/JPY eased from Y98.84 to Y98.55 before a bounce to Y98.81. The pair supported by talk of an increase in the IMF bail out funds and hopes of a resolution to the Greek debt deal.