Forex Analysis
FI Eye-Opener: Post-election rally in the periphery
Longer German bond yields edged slightly higher yesterday and the curve steepened, but trading volumes were very subdued due to the US and UK holidays.
AUD/USD Analysis
Aussie started at $0.9237 this morning following Monday’s $0.9230/49 trading range. Early trading action saw speculators taking on rumored offers at $0.9250,
EUR/USD Analysis
After quiet, holiday-thinned Monday sessions in Europe and the US, the euro started this morning on a bullish note, as it opened above the 200-day moving average of $1.3640, at $1.3646.
GBP/USD Analysis
The pair closed Monday’s holiday thinned session (US and UK closed) at $1.6843 after rate had recovered off early lows of $1.6828 to $1.6854 in very subdued trade.
USD/JPY Analysis
JPY opened at Y101.98 this morning while euro-yen started at Y139.10. Early market action saw dollar-yen stuck in a Y101.92/96 range after yesterday’s move through Y102.00 failed to garner sufficient follow-through.
Central European Daily
MNB is about to cut rates by 10 basis points Poroshenko’s victory could calm the situation in Ukraine The Central European currencies strengthened on Friday but
Commerzbank: GBP/USD View
In Cable, Commerzbank notes that it eased lower towards the end of the week and while this alleviates immediate upside pressure we will need a close below the uptrend channel at 1.6771 to confirm that the market has topped.
Commerzbank: EURUSD View
EUR/USD spent the latter part of the week testing the 200 day ma at 1.3637, notes Commerzbank.
ANZ: Weekly CFTC Trader Positioning Data
Leveraged funds reduced their net short positions against the USD for the second week. Net short positions against the USD fell by USD0.4bn, largely reflecting the reduction in positioning in the EUR.
FX Daily
Financial markets will digest the outcome of the EU-election. We expect the marketimpact to be limited despite strong gains for anti-EU parties.
FI Eye-Opener: A blow to further EU/Euro-zone integration
Core yields saw somewhat mixed performance on Friday. German yields edged slightly higher, and intra-Euro-zone spreads narrowed, while US yields fell ahead of all the uncertainty ahead over the weekend.
AUD/USD Analysis
The pair opened at $0.9236 this morning, following a $0.9214 to $0.9245 range in the US on Friday and re-visited Friday’s US session high before Japanese stocks started their day,