Monthly Archives: April 2012
USD/JPY Analysis
Opened in Asia at Y82.52 and after a brief push up to Y81.67 fell back on more general risk-off sentiment led by crosses following the 1st round French presidential elections at the weekend and a break down in austerity budget talks in Holland.
AUD/USD Analysis
Opened in Asia at $1.0380 trading down to $1.0367 before pushing up to $1.0385. Soggy equities and a much weaker than expected PPI ahead of tomorrow’s important CPI data led the pair sharply lower to $1.0326 before a stronger HSBC Flash China manufacturing PMI reading and option related buying led a bounce to $1.0349.
UBS Morning Adviser Asia
Policy Meetings In Focus Over the weekend the IMF received pledges of “over $430 bn” from IMF member countries in a bid to bolster its crisisfighting resources. Although the G20 statement made it clear that the additional funds will not be ear-marked for any particular region, the intention is to have enough resources on standby […]
EUR Analysis
Euro was holding a firm tone at the start of the US session, bolstered by upbeat eurozone data and by a squeeze on shorts ahead of the weekend. Pair had stalled just atop $1.3200 but reversal consolidated above $1.3180 as dip buyers emerged and fresh demand into the ECB fixing allowed a quick pop to […]
JPY Analysis
USD pair had seen strong buys ahead of the US session but stalled shy of Y81.80 as talk of sizeable offers ahead of Y82.00 trumped other chatter of hefty stops in the same zone while EUR/JPY tested, but respected, Y108.00.
UBS Morning Adviser America
Positive Data Surprises Both the pound and the euro gained ground in the European session after positive data surprises from both regions. The euro rallied after the German IFO business climate index rose to the highest IFO since August 2011.
Behavioral Finance: Daily Forex Outlook: The tendency to bearishness is unjustified
EUR USD (1.3145) Narrow ranges and sideways trading currently seem to accompany a popular search for gloomy news. For instance, the Spanish bond auction yesterday proceeded as well as anyone could have hoped at the start of the week.
JPY Analysis
Opened in Asia at Y81.60 and headed higher in early trading this morning on local cross demand in AUD/JPY and EUR/JPY to highs of Y78.71, before running into a raft of offers and easing back to Y81.55. EUR/JPY was tightly rangebound through Y107.15-40 as was GBP/JPY through Y130.89-Y131.21.
EUR Analysis
Euro closed in NY at $1.3138 having recovered off lows at $1.3069 to $1.3152. Rate meandered its way up to overnight session highs of $1.31579 in early Asia, driven mainly by cross flow. As this demand faded so rate drifted down to the lows of $1.31289.
GBP Analysis
GBP closed in NY at $1.6054, having recovered from a pullback low of $1.6009 in early NY (off earlier European highs of $1.6078) to $1.6072. Rate picked up an early bid tone into Asia on the back of GBP/JPY demand, the rate edging to an overnight high of $1.6062 before drifting off to $1.6039 as […]
FX Daily Strategist: Europe
FX markets stuck in ranges as vols continue to edge lower – despite stress signals elsewhere The lack of conviction in FX markets continues to frustrate, with moves seemingly confined to clearing out short-term stops. The inability to break out of recent ranges was nicely illustrated yesterday by the lack of reaction in EURUSD to […]
GBP/USD Analysis
Closed in NY at $1.6054, having recovered from a pullback low of $1.6009 in early NY (off earlier European highs of $1.6078) to $1.6072. Rate picked up an early bid tone into Asia on the back of GBP/JPY demand, the rate edging to an overnight high of $1.6062 before drifting off to $1.6039 as the […]