Monthly Archives: May 2012
Gold Analysis
Spot gold prices are little changed Thursday after prices once again tested support around the $1530 level during the previous session. Strong flows into the USD continue to hamper the precious metal, with investors still expressing haven preference towards U.S. Treasuries and German Bonds.
EUR/USD Analysis
Closed in NY at $1.23668, after rate was pressed to extended lows of $1.2361. Rate came under renewed downside pressure in early trade, the rate easing to an extended low of $1.2358, as it took its early lead from the sell off in AUD (Tr.Sec.Martin comment on the Australian deficit), but demand placed ahead of […]
UBS Morning Adviser Europe
RBA To Cut Next Week The latest batch of Australian economic data overnight confirmed that non-mining sectors of the economy continue to lose momentum. As a result, our Australia economics team now thinks the RBA will lower the cash rate by 25 bp on Tuesday, and are still looking for a total of 50 bp […]
Crude Oil Analysis
July Nymex WTI prices are trading in negative territory Thursday, extending their losses from yesterday’s sharp declines. Risk aversion has now sent oil prices to 7 month lows, with WTI falling 3.2% yesterday to close a huge $2.94 lower at $87.82 a barrel.
AUD/USD Analysis
AUD/USD opened the Asian session around $0.9705 and has so far traded in a $0.9674/$0.9719 range. After some moderate exporter buying interest that saw the rate trade to intra-day highs of $0.9719, sellers soon appeared with the rate breaking through $0.9700 following comments by Australian Treasury Secretary Martin Parkinson on Australian deficit.
Asia today: No cure for yesterday’s EUR hangover
The hangover from another EUR slide overnight could not be cured in the Asian session, with risk currencies content to hover near yesterday’s lows. As per yesterday, any hint of a rebound/retracement found a number of willing sellers.
UBS Morning Adviser Asia
Euro Aversion After a brief pop higher on the back of the some seemingly positive headlines from the EU Commission, it was all downhill for EURUSD, which fell below 1.24. Indeed, the Commission’s suggestion that direct bank recapitalisations via the ESM might be “envisaged” and the Eurozone should move towards a “banking union” were justifiably […]
UBS Morning Adviser America
Spain Concerns Continue The euro jumped 20-pips on the headline that the EU Commission could envisage direct recapitalization of banks by Eurozone permanent bailout fund (ESM). While the headline is positive, it is not unexpected and it would require a change in the ESM treaty to get the policy through.
Bonds Analysis
German government bonds are sharply higher into the NY session Weds and extending recent FTQ gains, with benchmark 2Y Schatz yield hitting record low at 0.0074% and 10Y Bund yield 1.308%, amid increased jitters surrounding Spain and Italy.
Gold Analysis
Spot gold prices remain in negative territory Wednesday extending their losses from the sharp move lower posted in the previous session. Prices have been in a narrow range so far after hovering between $1550/53 early on during Asian traded hours.
GBP Analysis
Opened early Europe at $1.5614, stg0.7985, GBP closed in NY at $1.5632, as rate recovered off late European lows of $1.5608. Rate managed to extend the recovery to $1.5637 into early Asia before reversing.
JPY Analysis
Opened in early Europe at Y79.45 and Y99.05, Opened in Asia at Y79.45 and gained 10 pips on headlines from BOJ’s Yamaguchi warning of further easing if EU risks materialise and BOJ’s Shirakawa warning of risks to the growth outlook.