Forex Analysis

FX Daily

Focus will be on the ECB’s asset quality review and stress test, which were releasedyesterday.

Core bond yields ended marginally lower on Friday. Leaked ECB bank stress test results put modest upward pressure on yields in the afternoon,

The pair closed in NY Friday at $1.6090 after rate had extended its recovery off Thursday lows of

The pair opened right at the session low for this morning at $0.8796 following last Friday’s $0.8719 to $0.8824 intraday range.

The pair started in Asia at $1.2679 after trading a $1.2635 to $1.2696 range on Friday.

The pair opened at Y108.36 this morning, slightly higher than its Friday close of Y108.12 in New York,

Overall credit growth has been edging higher. Mortgage demand is firmer

With the European bank stress test results out, the banks, if anything, have one minor reason less not to increase lending.

Beyond doubt this was a more credible stress test than similar exercises done before and

Further gradual rise favoured in USD/CAD However, the change in BoC’s communication suggests that

We suspect that some of the support in the Euro this morning is the result of fresh Ebola anxieties in theUS but

While the Swiss has shown some capacity to respect recent spike lows,