Daily Archives: February 23, 2012
US Treasuries Analysis
US Treasuries open NY lower after mixed overnight flows heading into today’s 1pm ET US$29B 7Y note auction. In TOKYO, Treasuries moved lower from the start after closing NY Wed higher after reasonably good $35B 5Y note auction.
Bond Analysis
German government bonds trading higher Thursday, amid 2-way flow, with the belly of the yield curve underperforming. Mar Bund futures opened higher amid increased geo-political tensions in the Middle-East and also the continued uncertainty surrounding Greece.
UBS Morning Adviser America
Strong IFO Boosts Euro The euro led other risk assets higher in the European session after a strong German IFO print. All sub-indices including the main business climate (109.6) were above consensus and the euro broke through the 100 day movingaverage to a high of 1.3343.
Behavioral Finance: Daily Forex Outlook: Dim growth outlook fails to dent the euro
EUR USD (1.3260) A vote to get the Greek bailout deal approved in the German parliament looms. Important thing is the issue of increasing the resources of the ESM to €750 billion. As before, the IMF and other eurozone members are in favour of increasing the ceiling.
GBP Analysis
GBP closed in NY at $1.5668, having been pressed to lows of $1.5648 during the session following dovish BOE Minutes. Rate was held between $1.5660/70 in early Asia before dipping to $1.5650 as rate tracked Aussie’s dip to take out barrier interest at $1.0600.
EUR Analysis
EUR/USD closed in NY at $1.3247 after trade was contained within a range of $1.3212/67. Rate picked up an early bid tone into early Asian dealing, the rate edging to an early high of $1.3255 before dropping back to $1.32312 as rate tracked Aussie’s dip that took out option barrier interest in this pair at […]
JPY Analysis
Opened in asia at Y80.29 after NY highs of Y80.41 and after early highs of Y80.35 slipped back on cross sales to Y80.07. Bids from funds at Y80.00/10 halted further falls and the pair later settled around Y80.15. EUR/JPY eased from Y106.45 tripping some light stops through Y106.20 to Y106.16.
Daily FX Technical Strategy: Euro delayed reaction
The market appears to be slowly responding to the Greek bailout deal given the general euro recovery yesterday. EUR/GBP is leading the charge but if EUR/AUD, EUR/CAD and EUR/NZD all follow through by breaking their respective recent range highs today, then we would expect the short covering move to snowball.
UniCredit EEMEA Daily
News HU: Negative – EC recommends suspension of cohesion funds as of 2013 (p1)
FX Market Technical Research
EUR/USD is sidelined and is struggling at the 1.3300/22 area (last weeks high). Failure here should provoke a sell off back to the 50% retracement at 1.2974, this remains our favoured scenario. Below 1.2974 should trigger losses to 1.2891/54, then 1.2775 en route to the 1.2626 recent low.
Technical Analysis
EURUSD is possibly completing a bullish triangle – IF so with a mid-133 target… USDJPY is still in its bullish drive, but a pause/small setback would be timely at key resistance with the current short-term stretch in mind…
GBP/USD Analysis
Closed in NY at $1.5668, having been pressed to lows of $1.5648 during the session following dovish BOE Minutes. Rate was held between $1.5660/70 in early Asia before dipping to $1.5650 as rate tracked Aussie’s dip to take out barrier interest at $1.0600.