Daily Archives: February 10, 2012
FX European Market Analysis
The EUR extended a slide in European trading hours Friday and the AUD continued a pullback from Wednesday’s six-month high against the dollar, as weary investors booked profits on positive currency bets and fears re-emerged over Greece’s ability to stave off a default.
Bond Analysis
German government bonds trading sharply higher Friday following comments from the leader of Greek LAOS party, Giorgos Karatzaferis, who said his party members won’t vote for the new rescue plan. Mar Bund futures opened higher amid risk-off trades after the EU rejection of the Greek bailout agreement.
FX Daily Strategist: US
FX trading risk-off today on yesterday’s Greek disappointment FX markets are trading a classic risk-off theme this morning given yesterday’s slip back in progress on Greece. The USD is bid across the board (barring GBP), and the EUR is stronger vs. high-beta/yield (AUD, NZD, and SEK) but softer against the relative lower yielders (USD, GBP […]
Behavioral Finance: Daily Forex Outlook: Draghi attempts to anchor expectations lower
EUR USD (1.3265) Although the eurozone ministers rejected the tortuously negotiated Greek deal as insufficient to disburse the next tranche of the bailout package, the euro hardly mirrored any volatility, an indication that investors have become weary about the whole Greek issue.
UBS Morning Adviser America
Risk Correction After negotiations between Greek and European officials broke down last night, risk appetite was significantly softer on Friday. The AUD took a knock overnight as the RBA’s Statement on Monetary Policy was interpreted as dovish, while Chinese loan data was poor.
EUR/USD Analysis
EUR/USD closed in NY at $1.3285, after rate had pushed to highs of $1.3322 to take out option barrier interest at $1.3315. Move up had been aided by increased hopes that progress had been made on the Greek debt deal, though this was partially thwarted by German FinMin comments not to expect a decision out […]
GBP/USD Analysis
GBP closed in NY at $1.5815, just off session lows of $1.5813 after rate had pulled back from earlier highs of $1.5886. Rate posted an early Asian session high of $1.5818 before resuming its corrective pullback, trading through Thursday’s Asian low of $1.5794 to extend the pullback from recent highs of $1.5929 to $1.5782, with […]
JPY Analysis
Opened in Asia at Y77.66 after highs in NY of Y77.73 and headed higher on some early importer demand to Y77.75 before exporters pushed the pair back to Y77.51. The rate has since settled around Y77.60/65. EUR/JPY opened at Y103.19 after NY highs of Y103.29 and eased down with the EUR/USD to Y102.91.
Gold Analysis
Spot gold prices have fallen Friday, moving in tandem with a weaker euro, after the EU rejected the proposed Greek bailout deal. The continuing Greek uncertainty has seen risk assets correct lower so far Friday, with spot gold currently trading just above session lows at $1717.93, down $11.47.
Daily FX Technical Strategy: Pullback within greater trends
The bearish breakout in German 10y yields is helping to support the EUR. In particular, both the EUR/AUD and EUR/AUD crosses are staging near-term bounces as profit taking leads them toward the January highs.
Bond Analysis
German government bonds opening higher Friday, amid fade in risk-appetite as final approval on Greece bailout funds now turns cautious. EU sources told MNI that 10 member states of the Eurozone are reluctant to approve a second rescue package for Greece amid doubt that Athens will be able to implement the measures it has agreed […]
Currency Outlook: GBP – Slave to EUR fortunes
The market remains fixated by the euro crisis, ensuring that GBP largely takes its cue from EUR-USD. We examine five potential catalysts for this link to break. While there is much fiscal pain to come, there are not yet grounds for GBP to move independently of EUR-USD.