Monthly Archives: February 2012
EUR/USD Analysis
Closed in NY at $1.3370, having rallied strongly from a pullback low of $1.3270 to post extended recovery highs of $1.33747, having taken out the reported barrier at $1.3350. Trade in Asia consolidated this move with trade during the main part of the session contained within a range of $1.3365/80 before dropping late on to […]
Crude Oil Analysis
Nymex April crude prices are holding firm in Asia this morning around $108.50 after a sharp rally yesterday in NY. The move was largely seen as a short squeeze, despite the absence of any further headline news from Iran, and a build in inventories reported by the EIA of 1.63mmbls which was slightly above analysts […]
AUD/USD Analysis
Opened at $1.0715 having seen a strong bounce along with the EUR/USD from NY lows of $1.0661 on a surge in crude oil prices and some panic short covering in the EUR/USD. Failure of the EUR/AUD to break decisively through the A$1.2480/90 level also added a bid tone to the pair.
USD/JPY Analysis
Opened at Y80.00 after seeing lows of Y79.85 in NY following strong 7yr treasury auctions, but recovering on the back of strong real money and leveraged demand in the EUR/JPY which sparked a wave of short covering.
AUD rallies as RBA’s Stevens says he is happy with current policy
In his semi-annual testimony before Parliament, RBA Governor Stevens said that monetary policy was right for the moment. He offered nothing different from the previous RBA statements and remained upbeat on the economy throughout.
UBS Morning Adviser Asia
Stevens Boosts AUD The Australian dollar got a modest boost from parliamentary testimony by RBA Governor Stevens. He painted a relatively upbeat picture of the economy and, crucially, he did not suggest the RBA are poised to cut the cash rate imminently.
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 […]