Monthly Archives: April 2012
Technical Analysis
JPY strength. AUD downside turn? US bond yield up… EUR/USD Ended the week above 1.3227… USD/JPY Exited the 55d ma band… AUD/USD Rise looks corrective… EUR/SEK Next resistance violated… USD/SEK Failed breaking 6.75/76… EUR/NOK Soon to exit the bull flag.
Crude Oil Analysis
June Nymex crude oil prices are currently trading $104.83, down 10 cents on the session, with the market observed in a tight trading range as parts of Asia are absent due to a public holiday.
AUD/USD Analysis
AUD/USD is currently seen trading $1.0452 ahead of the European opening, as the rate recovers some early declines seen during Asian trading hours. The pair started the week opening around $1.0457 before dipping down to $1.0436 within the first two hours of the session.
USD/JPY Analysis
USD/JPY was trading at Y80.15 ahead of the European open, close to the lower end of the session’s Y80.11 to Y80.38 range. The pair opened around Y80.25, edging higher in very light volume as Tokyo markets are closed for a public holiday – the first of the annual “Golden Week” holidays.
Calm Asian markets, one eye on the RBA (and holidays!) tomorrow
It was a quiet start in Asia to what will be a busy week, with holidays in Japan and China impacting activity. Currencies were range-bound and barely changed from Friday’s New York closing levels.
UBS Morning Adviser Asia
Dollar On The Ropes The US dollar sold off across the board on Friday after Italy managed to auction bonds successfully despite Spain’s downgrade by S&P earlier. A weak US GDP report for Q1 inflicted further damage, leading to another round of dollar selling.
FX Markets Summary
U.S. gross domestic product, the broadest measure of the country’s economy, rose at a 2.2% rate in the first quarter, below the 2.6% growth rate economists had forecast. The weaker-than-expected report came as investors, concerned the U.S. economic recovery may be stumbling, have been eager to pinpoint the Federal Reserve’s next potential move.
UBS Morning Adviser America
JPY Bears Retreat After a shaky opening to the Eurozone fixed income markets, risk assets recovered some lost ground in Europe, with the euro rallying some 80 pips back up to 1.3240. The BTP 10-year auction results were reasonably strong though less demand was seen for the 5-year bond.
EUR Analysis
Opened early Europe at $1.3186, EUR/USD closed in NY at $1.3217, the rate correcting away from a late recovery high of $1.3240, with news of S&P’s downgrading of Spain by two notches to BBB+ hitting the markets at 1700EDT which dropped rate to $1.31766 at the Asia open in very thin trading conditions.
GBP Analysis
Opened early Europe at $1.6172 stg0.8154, GBP closed in NY at $1.6179, the rate having retained an underlying buoyant tone through Thursday’s session, holding just off extended highs at $1.6208, with pullbacks in this session contained by $1.6167.
JPY Analysis
Opened in early Europe at Y80.88 and Y106.61, USD/JPY opened in Asia at Y81.20 and headed lower on exporter supply through Y81.00 to Y80.90 as volumes remained light into the BOJ policy decision.
Behavioral Finance: Daily Forex Outlook: Chorus for growth is not in harmony
EUR USD (1.3200) A two-notch S&P downgrade with a negative outlook for Spain has come as a result of the risks to the country’s budgetary performance from shrinking economic growth. This downgrade seems to support a recent wave of opinion against austerity.