Monthly Archives: May 2012
UBS Morning Adviser Asia
More Pain In Spain The fact that EURUSD was so easily knocked below 1.25 on the ratings downgrade of Spain by Egan-Jones from BB- to B serves reminder of the heightened market sensitivity to any bearish Spanish headlines and the scope for continued disappointment.
UBS Morning Adviser America
China Stimulus Hopes Dashed The AUD and EUR reversed their gains versus their dollar in Europe as a report from the news agency Xinhua quashed expectations of fresh large-scale stimulus from China. Earlier, domestic reports had circulated suggesting that new stimulus measures were being discussed, up to the size of CNY 4trn – but these […]
Bonds Analysis
German government bonds are higher Tuesday having reversed opening weakness, with the benchmark 10-year Bund yield hitting fresh record low at 1.344% June Bund futures opened lower on profit-taking, but reversed direction as stocks pare gains with some traders citing comments from Bank of Spain saying economy is to continue shrinking in Q2.
Daily FX Technical Strategy: EUR crosses take the strain
Evidence for a short term risk respite continues to mount… outside the eurozone that is. A reversal day in the Shanghai Composite implies further near-term upside potential and this is reflected in the commodity currencies where momentum is calling for a corrective bounce. Spanish problems, though, continue to be a drag making euro cross trades […]
Behavioral Finance: Daily Forex Outlook: Euro buoyed by profit-taking
EUR USD (1.2535) Even as the IMF’s chief reiterated the significance of tax collection and tourist revenues for the Greek economy, it is any hint at the colour of the likely coalition after next month’s election that causes markets to pay attention.
GBP Analysis
Opened early Europe at $1.5673, stg0.7997, GBP closed Monday’s session at $1.5678, just off lows of $1.5675. Trade through Asia tracked EUR/USD, as the cross was contained within a tight range of stg0.79895/0.8000, with an early push up to session highs at $1.5683 reversing, then moving through Monday’s base before closing the gap left by […]
EUR Analysis
Opened early Europe at $1.2534, EUR/USD closed Monday’s North American session at $1.2542, off pullback lows of $1.2525, after rate had been pressed back from early European highs of $1.2625 as early risk-on tone was reversed on widening Eurozone peripheral bond spreads.
JPY Analysis
Opened in early Europe at Y79.55 and Y99.71, opened in Asia around Y79.55 and lifted to Y79.64 ahead of the Tokyo fix, following a slight increase to 4.6% in the April unemployment rate. Exporter supply capped and the rate fell back on usual month end sales flow, extending losses to Y79.42 on cross yen supply.
FX Market Technical Research
EUR/USD saw a very tepid rebound on Monday. The new low of 1.2495 charted last week has not been confirmed by the daily RSI and this suggests caution here and some near term consolidation.
GBP/USD Analysis
Closed Monday’s session at $1.5678, just off lows of $1.5675. Trade through Asia tracked EUR/USD, as the cross was contained within a tight range of stg0.79895/0.8000, with an early push up to session highs at $1.5683 reversing, the move down moving through Monday’s base before closing the gap left by Friday’s NY close at $1.5660 […]
Gold Analysis
Spot gold prices are trading modestly lower Tuesday after prices failed to breach some minor resistance around $1580 early on during the Asian session. Spot gold traded up to just over $1579 before prices fell back to session lows of around $1571.70 as risk assets became subject of some selling pressure in Asia, thought to […]
Technical Analysis
Europhobia prevails… EUR/USD Sellers responded again… EUR/JPY Soon at a fresh short-term low… EUR/GBP Sellers retain an upper hand… EUR/SEK Still respecting support… USD/SEK Bullish triangle (or flag)… EUR/NOK Support likely at range floor.