Forex Analysis
GBP Mid-day Analysis
With residual geopolitical anxiety and weaker equities to start the new trading week, the Pound shouldremain in a profit taking bias.
We remains short EUR/GBP – BNP Paribas
The minutes to the July BOE MPC meeting will be released on Wednesday and will be scrutinized for further evidence that the Committee is moving towards hiking rates later this year, notes BNP Paribas.
The Global Macro Pulse
With Japan closed today, trading in FX markets was thin. EURUSD crept slightly higher to 1.3533, USDJPY is marginally lower at 101.26, and AUDUSD is flat at 0.9393.
AUD/USD Analysis
Aussie started this morning at $0.9390 after Friday’s $0.9336 to $0.9411 range. The aussie traded that high during the US hours but retreated toward the session close.
FI Eye-Opener: Markets too upbeat on Europe?
German bond yields initially continued to fall on Friday, and the 10-year yield almost touched the record lows of 1.13% from 2012,
FX Daily
A light global calendar today with focus likely to remain on the geopolitical tensions. Both US and Europe are increasing the pressure on Russia following the MH17 crash.
GBP/USD Analysis
The pair closed Friday at $1.7088 after rate had recovered off pressured lows of $1.7037(US bank fix sales 1300GMT) before correcting to $1.7094 ahead of the close.
Leveraged Funds Positioning Data
The USD was sold almost across the board in the week ending 15 July by leveraged funds.
EUR/USD Analysis
The pair crumbled below $1.3500 on Friday in the US for the first time since early February and traded a low of $1.3491 before opening at $1.3528 this morning in Asia.
USD/JPY Analysis
A holiday in Japan today made for a quiet session in yen pairs. Dollar-yen opened at Y101.37 while euro-yen started at Y137.09 this morning.
Markets Outlook – OCR Hike a Case of Risk Management
If this Thursday’s OCR decision was down to just the marginal economic information then there would be some rationale for the Reserve Bank holding fire,
Weekly Commentary
The big news of last week was an 8.9% fall in theGlobalDairyTrade auction price, after a 5% drop a fortnightpreviously.