Monthly Archives: April 2012
UBS Morning Adviser America
UK Back In Recession The pound came under pressure versus both the euro and dollar after the Q1 GDP print confirmed that the UK is back in recession. The headline number came in at -0.2% versus consensus estimates of +0.1%.
GBP Analysis
GBP closed in NY at $1.6144, the rate having recovered from a pullback low of $1.6127 after extending recent highs earlier in the day to $1.6164. Rate consolidated its recent recovery, trade through the Asian session contained within a range of $1.6136/51, with early sales into Europe retesting the overnight low before marking a fresh […]
EUR Analysis
EUR/USD closed in NY at $1.3198, the rate recovering from a pullback low of $1.3180 into Asian trade after rate had seen session highs in NY of $1.3219. Rate initially dipped to mark overnight lows at $1.31917 before picking up fresh demand, the market risk on tone boosted by the strong results from Apple.
JPY Analysis
Opened in Asia at Y81.32 after a recovery yesterday from lows in NY of Y81.01. The pair headed higher as the Nikkei pushed up over 1% in early trading on the back of rises in US stocks and strong Apple earnings but the move stalled into offers above Y81.50 from exporters, models and macro funds […]
Behavioral Finance: Daily Forex Outlook: The austerity dilemma
EUR USD (1.3195) The successful Dutch government bond sale managed to offset the negative sentiment that the political upheaval in Netherlands triggered in the market. Nevertheless the collapse of the Dutch government bought into forefront the challenges of trying to implement austerity programmes, not just in the periphery but in the AAA-rated core economies too.
Technical Analysis
Many markets are pausing, commodities extend losses… EUR/USD No new directional information… USD/JPY Another leg higher underway?… AUD/USD Notable buyers’ response… EUR/SEK Mid-body support confirmed… USD/SEK Hugging support… EUR/NOK Acceleration higher needed… NOK/SEK Micro-term bullish flag… GBP/USD Running out of steam.
Bond Analysis
German government bonds are opening lower Wednesday ahead of the new 30-year Bund auction for E3.0bln. Volumes are seen light as players await the FOMC meeting outcome and press conference with Federal Reserve Chairman Ben Bernanke later this session.
GBP/USD Analysis
Closed in NY at $1.6144, the rate having recovered from a pullback low of $1.6127 after extending recent highs earlier in the day to $1.6164. Rate consolidated its recent recovery, trade through the Asian session contained within a range of $1.6136/51, with early sales into Europe retesting the overnight low in tandem with EUR/USD.
EUR/USD Analysis
Closed in NY at $1.3198, the rate recovering from a pullback low of $1.3180 into Asian trade after rate had seen session highs in NY of $1.3219. Rate initially dipped back to mark overnight lows at $1.31917 before picking up fresh demand, the market risk on tone boosted by the strong results from Apple.
UBS Morning Adviser Europe
FOMC Decision Approaches Surprisingly-strong US earnings reports released after the NY close generated an upbeat tone in Asia, allowing the Australian dollar to claw back all losses it has suffered since Tuesday’s soft CPI reading.
Gold Analysis
Spot gold is trading around $1642 this morning Asia after another strong rally yesterday lifted the metal from $1634.15 to $1649.40 on the back of rising equities and strong earnings from US companies including Apple.
Crude Oil Analysis
June Nymex crude oil prices edged higher yesterday in tandem with equity markets trading up to $104.10 from earlier lows of $102.79 and closing at $103.55, some 45cents up from opening levels.