Monthly Archives: April 2012
Crude Oil Analysis
June Nymex crude oil prices are trading steadily at $104.41 a barrel Thursday, supported by a move higher in equities, after the U.S. Federal Reserve’s meeting on interest rates offered up few surprises.
Gold Analysis
Spot gold prices are trading modestly higher Thursday, after the U.S. Federal Reserve’s meeting revealed no real surprises. Fed chairman Ben Bernanke said U.S. monetary policy was “more or less in the right place” even though the central bank would not hesitate to unleash another wave of bond purchases if the economy were to additionally […]
FX Daily Strategist: Europe
FOMC commentary challenges view of ‘More Twist in June’….. Treasuries initially sold off and the dollar drew support from the FOMC post meeting statement. These moves were subsequently reversed after Mr Bernanke made clear in the post-meeting press conference that ‘We remain prepared to do more’.
Bonds Analysis
German government bonds are opening higher Thursday following dovish comments from Fed Chairman Ben Bernanke at the FOMC news conference, which outweighed impact of the hawkish Fed projections.
GBP/USD Analysis
Closed in NY at $1.6167, after rate had bounced back from post GDP release lows of $1.6082 to $1.6183 as it took full advantage of the USD sell off as market reacted to dovish comments from Ben Bernanke (leaves door ajar to possible QE3) in his post FOMC press conference.
UBS Morning Adviser Europe
RBNZ On Hold At 2.5% The RBNZ kept the policy rate unchanged at 2.5%, but implicitly raised the prospect of a future interest rate cut if the New Zealand dollar remains elevated. The short overnight policy statement warned that continued currency strength may force the bank “to reassess the outlook for monetary policy”.
EUR/USD Analysis
Closed in NY at $1.3218 after rate had been bounced from session lows of $1.3173 to $1.3234 as market reacted to FOMC statement (viewed hawkish) the Fed Bernanke’s press conference (viewed dovish as left open the use of QE3).
Technical Analysis
EUR/GBP lower, HUF rising and bonds back on track… EUR/USD Ending reaction?… EUR/JPY Still struggling in the bands… EUR/GBP Looking for a new low… EUR/SEK Sideways then higher… USD/SEK Waiting for buyers… EUR/NOK Slow… EUR/HUF Falling out of bed.
UBS Morning Adviser Asia
Mixed Signals From The Fed The Fed offered few surprise in the April press release, though Chairman Bernanke’s press conference was more dovish.. It is clear Bernanke wants to keep all the tools available to the Fed on the table, and was explicit in noting ’balance sheet tools’ which are available.
TEXT OF FOMC STATEMENT
Information received since the Federal Open Market Committee met in March suggests that the economy has been expanding moderately. Labor market conditions have improved in recent months; the unemployment rate has declined but remains elevated.
FOMC ready to dance with market expectations
The USD was even having a hard time holding onto gains against sterling today, which weakened on a very negative GDP report for Q1. Has the market appropriately priced in the FOMC risks here?
FX Daily Strategist: US
Weak UK GDP holding back GBP for now – looking to short EURGBP The worse-than-expected UK GDP print was the focal point this morning, against a back drop of rebounding risk appetite and equity markets. The first release of UK Q1 GDP showed that the UK economy contracted 0.2%, weaker than expectations of 0.1% q/q […]