Monthly Archives: April 2012
UBS Morning Adviser America
Dollar Consolidates in Europe After a relatively subdued start in Asia, risk appetite suffered in Europe, with the dollar reversing some of its losses, particularly against the high-beta currencies. The JPY continued its grind higher, while GBP hit 32-month highs on a trade-weighted basis..
Behavioral Finance: Daily Forex Outlook: Growth has yet to trump austerity
EUR USD (1.3250) A closer look at the latest soft US GDP data reveals that although consumer spending rose 2.9 percent, the fastest pace in five quarters, it was not accompanied by a parallel growth in public spending.
FX Daily Strategist: Europe
US Q1 GDP reaction points the way for this week’s releases Friday’s US Q1 GDP advance estimate yielded a relatively muted reaction from the markets, although it provides some pointers for the likely reaction of the USD to this week’s major releases. US Q1 GDP came posted at 2.2%q/q saar, below market expectations of 2.5%.
GBP Analysis
Opened early Europe at $1.6281 stg0.8138, GBP closed in NY at $1.6260, off late session highs of $1.6280. Thin trade conditions, with Japan and China missing today, saw rate track the initial pullback in EUR/USD, the rate posting overnight lows at $1.6257 before picking up fresh demand that lifted it through Friday’s high to extend […]
JPY Analysis
Opened in early Europe at Y80.13 and Y106.15, USD/JPY opened in Asia at Y80.25 and headed lower to Y80.11 triggering stops on the move, before finding some support from hot money names covering shorts. A modest bounce of the lows saw the pair at Y80.18 as volumes remained light for the annual “Golden Week” holidays.
EUR Analysis
Opened early Europe at $1.3250, EUR/USD closed in NY Friday at $1.3252 after rate had pulled back from post US GDP highs of $1.32706 to $1.3235. Rate came under early sell pressure, on the back of EUR/JPY sales into a holiday thinned Asian session, Japan and China closed, the rate pressed to a low of […]
Speculative Positions
Positive GBP sentiment SEB Risk appetite index (RAI) Risk appetite ended the week slightly better but off the weekly highs.
Gold Analysis
Spot gold prices are trading little changed Monday, with prices currently seen trading at $1665. The precious metal remains near its 2-week high on prospects of more safe haven support, after prices advanced strongly during Friday’s session to trade up to an intra-day high of $1667, as risk assets staged a rally during the U.S. […]
GBP/USD Analysis
Closed in NY at $1.6260, off late session highs of $1.6280. Thin trade conditions, with Japan and China missing today, saw rate track the initial pullback in EUR/USD, the rate posting overnight lows at $1.6257 before picking up fresh demand that lifted the rate back through Friday’s high to extend the recent recovery to $1.6289.
UBS Morning Adviser Europe
Dollar Still Struggling Overnight the US dollar failed to recover from Friday’s selloff, and further ground was surrendered to sterling and to the yen. Although Friday’s weak US Q1 GDP report is not entirely to blame for the recent dollar weakness, it certainly didn’t help the dollar’s cause.
RBA Preview – A rate cut, for sure, but a question of how much
The below-forecast releases of Australian inflation data for the first quarter has almost confirmed a rate cut at tomorrow’s RBA meeting – the question now remaining whether the central bank will deliver 25bp or 50bp in cuts.
EUR/USD Analysis
Closed in NY Friday at $1.3250 after rate had pulled back from post US GDP highs of $1.32706 to $1.3235. Rate came under early sell pressure, on the back of EUR/JPY sales into a holiday thinned Asian session, Japan and China closed, the rate pressed to a low of $1.3228 before meeting demand interest (NY […]