Monthly Archives: January 2012
GOLD ANALYSIS
Spot Gold prices consolidated the powerful gains of Wednesday with a new 7week high of $1730.85 in NY yesterday after opening the session around $1710.60. The move was seen as follow through strength following the FOMC meeting which pledged low rates until at least 2014.
CRUDE OIL ANALYSIS
Nymex crude prices closed fractionally lower yesterday in mixed trading with the contract continuing to gyrate around the $100 level but continues to close just below it. The IEA stated that there was no need to release any strategic reserves to counter any shortages from an Iranian oil embargo at the present time.
AUD/USD ANALYSIS
Opened in Asia at $1.0631 with the pair down from highs yesterday of $1.0688 seen in Europe. Better than expected NZ Dec trade data weighed on the AUD/NZD which prompted a slide in the cross to NZ$1.2924 from NZ$1.2966, which stalled an early rise in AUD/USD at $1.0641.
USD/JPY ANALYSIS
Opened in Asia at Y77.45 after slipping back yesterday from Y77.81 to lows of Y77.29 in NY. Exporters and custodial names opened the selling in EUR/JPY and AUD/JPY which in turn impacted on the USD. The pair slid to Y77.27 before bouncing back towards Y77.45.
Asian Market Summary
EUR/USD opened in Asia at $1.3109 after slipping back from NY highs of $1.3184 on soft US housing data and comments from Juncker that the ECB wouldn’t accept losses on Greek debt which weighed on sentiment.
UBS Morning Adviser Asia
European equities ended Thursday on a buoyant note as stimulus from the Fed and hopes of further progress from Greece encouraged hopes that the worst is now over. The Stoxx 600 index for Europe is now back in bull market territory, having recovered more than 20% from its September lows and the EUR has responded […]
CRUDE OIL ANALYSIS
Crude oil futures climbed above $101 a barrel Thursday after Iran threatened an immediately halt crude oil sales to the European Union and U.S. indicators showed an improving economy.
UBS Morning Adviser America
Post-Fed Rally The post-FOMC risk rally continued on Thursday with the dollar extending its losses in the European session. Data flow on Thursday was minimal and the markets were largely driven by yesterdays Fed actions. A short-dated Italian auction was well received, while Swedish data disappointed and SEK underperformed.
GBP/USD ANALYSIS
Opened early Europe at $1.5665 stg0.8379 GBP closed in NY at $1.5660, off FOMC inspired recovery highs of $1.5679. Holiday thinned Asia saw cable consolidate the move, with trade contained within a very tight range of $1.5651/65.
EUR/USD ANALYSIS
Opened early Europe at $1.3125 EUR/USD closed in NY at $1.3107, having corrected from a low of $1.2931 to $1.3121 as markets reacted to the dovish FOMC comments. With Australia and India closed for holidays, and China for the week, it made for a very thin Asian market to ponder last night’s events.
JPY ANALYSIS
Opened in early Europe at Y77.59 and Y101.79 Opened in Asia at Y77.78 after falling back from NY highs of Y78.28, The FOMC brought risk back on to the table which sparked a massive risk rally in the EUR and Gold.
FX Daily Strategist: Europe
Commodity currencies well placed to benefit post-FOMC The FOMC statement overnight was rather dovish and should see the USD sell off versus the commodity currencies. The announcement has seen nominal yields declining even as inflation expectations move higher.