Monthly Archives: February 2012
USD/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.
UBS Morning Adviser Asia
Seeking Consolidation With the news flow from the Eurozone largely exhausted for now the market reverted to data in search of risk drivers.
Bund Analysis
German government bonds trading higher Wednesday following weaker than expected European flash PMI data and gains in UK Gilts after dovish Bank of England minutes.
UBS Morning Adviser America
BoE Split On QE Risk assets continued to trade heavy in Europe and the euro came under slight pressure after some weaker Eurozone PMIs. USDJPY finally broke through 80 and pushed higher throughout the session.
EUR Analysis
EUR/USD closed in NY at $1.3233, with early demand into Asian dealing taking it to highs of $1.32499. Rate reversed to $1.3211 before recovering in steps to $1.3240 into the European open.
GBP Analysis
GBP closed in NY at $1.5783 and initially edged to $1.5793 in early Asian dealing before easing back to mark lows at $1.5764 as it tracked EUR/USD moves. Rate recovered, stepping its way to $1.5796 before Europe provided the added push to take it on to $1.5816.
JPY Analysis
Opened at Y79.74 in Asia and after an early low of Y79.68 headed higher on cross demand particularly on EUR and AUD/JPY buying which has steadily taken out a raft of offers and finally flushed the Y80.00 barrier tripping stops to a high of Y80.07.
Behavioral Finance: Daily Forex Outlook: The Greek deal had an even shorter half-life
EUR USD (1.3225) The scepticism around the Greek bailout deal is pervasive. While it was clear that the package was essentially crafted for servicing the debt costs of the Greek government, the complex PSI deal, it seems, does not guarantee a closure on the issue yet.
Daily FX Technical Strategy: US yields carry JPY crosses
While initial JPY weakness emerged in response to optimism for equities, the recent push to 1-3 month range highs for US yields has likely given investors additional reasons to pare back JPY length.
FX Daily Strategist: Europe
Greek deal leaves markets none the wiser The response to yesterday’s Greek bailout has seemingly confounded most market participants: those looking for a relief rally in risk have been sorely disappointed – but so have those who were looking for a ‘sell the fact’ response.
FX Market Technical Research
EUR/USD as expected 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.
GBP/USD Analysis
Closed in NY at $1.5783 and initially edged up to $1.5793 in early Asian dealing before easing back to mark lows at $1.5764 as it tracked EUR/USD moves. Rate recovered, stepping its way to $21.5796 before Europe provided the added push to take it on to $1.5801.