Monthly Archives: May 2012
EUR/USD Analysis
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.
UBS Morning Adviser Europe
Fitch Turns Pro-Growth The US holiday on Monday made for quiet trading conditions in Asia overnight, however the Australian dollar was supported by rising expectations of a growth-supportive policy response from China. Meanwhile Fitch warned that Eurozone sovereign ratings are not likely to see stability “anytime soon”.
Crude Oil Analysis
July Nymex WTI crude prices have edged their way higher Tuesday, holding steady above $91.00 a barrel. Trading has been largely range bound coming off of yesterday’s U.S. holiday, with prices dipping early on in Asia from around $91.39 a barrel to session lows of $90.87 after some risk assets came under pressure from Japanese […]
AUD/USD Analysis
AUD/USD opened in Asian around $0.9855 and has been seen in a range of $0.9802/58 so far. The rate was subject to some early selling pressure, thought to be from a custody bank, with a sharp move lower from $0.9845 down to session lows of $0.9802 observed in the early part of Asian traded hours.
Asia Today: Was that it? A 12-hour EURUSD retracement?
After a relatively calm overnight session due to the US holiday, Asia opened today’s session with a slew of Japanese data. Japan’s unemployment rate nudged up to 4.6 percent from 4.5 percent previously (and expected) in April and was the first increase in 3 months but there was some welcome news as the job-to-applicant ratio […]
UBS Morning Adviser Asia
Greek Banks Recapitalised A US holiday made for quiet trading conditions overnight, but earlier risk finally found some consolation during the European session after some favourable news flow. This boost to sentiment ultimately faltered however as investor concern over the currency union, and especially its banking sector, returned.
FX CFTC: Flight to dollars (and JPY) intensifies
The weekly collection of data from the CFTC covering the week ending May 22 showed a huge increase in the net dollar long postion as all of the eight IMM currency futures were sold apart from the JPY.
Bonds Analysis
German government bonds are mixed midday Wednesday, with the yield curve steeper, albeit in thin volume trading with U.S closed for the Memorial Day holiday and a number of European countries also observing Whit Monday/Pentecost holidays.
UBS Morning Adviser America
Euro Squeezes Higher Risk finally found some consolation overnight as European equity markets rallied on the back of some more pleasant news out of the Eurozone. An Italian auction also passed without incident.
GBP Analysis
Opened early Europe at $1.5702, stg0.8019, GBP closed in NY Friday at $1.5660, as rate recovered off traded lows of $1.5630. Rate was marked higher into early Asia on weekend press reports which prompted a move back into risk.
JPY Analysis
Opened in early Europe at Y79.37 and Y100.01, opened in Asia around Y79.55 and nudged higher in thin trade before running into corporate/exporter sales ahead of the BOJ minutes. USD slipped to Y79.40 on reaction to expected release where the BOJ said there would be additional easing, but warned they are not monetising debt.
EUR Analysis
Opened early Europe at $1.2592, EUR/USD closed in NY Friday at $1.2516, having seen lows in this session of $1.2495 before bouncing after taking out option barrier interest at $1.2500.