Forex Analysis
FX Daily
Not much on the global agenda today. UK CPI is expected to rise to 1.7% y/y from1.6% y/y, which would mark the first increase in more than a year.
FI Eye-Opener: Italian and Spanish bonds facing stormy weather for a change
Bond yields edged further up on both sides of the Atlantic yesterday, though the short end yields actually fell a bit and curves thus steepened. Trading volumes were not particularly large.
AUD/USD Analysis
Aussie fell to a 2-week low this morning, after reports suggested that Australia’s credit rating could be put at risk by disagreement over the Federal budget.
EUR/USD Analysis
Another quiet morning for the euro after it had traded a $1.3702 to $1.3734 range last night in the US. Euro-dollar opened at $1.3709 and
GBP/USD Analysis
The pair closed in NY Monday at $1.6816 after rate had recovered off a session low of $1.6806 to $1.6845 (21-dma Monday).
USD/JPY Analysis
A subdued morning for the Japanese currency, with dollar-yen stuck in a narrow range while euro-yen enjoyed a mild stop-loss driven move higher early in the session.
EUR Mid-day Analysis
Clearly the Euro has rejected the overt weakness seen at times last week as the Euro is seeminglyclimbing back toward last week’s highs without definitively bullish economic news flow.
CHF Mid-day Analysis
While the Swiss is left flat footed by the rejection of a $25 minimum wage referendum, it is catching anindirect lift from a recovery in the Euro and renewed weakness in the US Dollar.
JPY Mid-day Analysis
An upside breakout in the Yen to the highest level since February 5th suggests that the Japanese economyis regaining its footing.
USD Mid-day Analysis
The Dollar is showing signs of falling below the potentially critical pivot point of 80.00 in the early goingtoday. However, it is somewhat surprising that the Dollar is showing weakness in the face of noted slowing fearsin Europe,
CAD Mid-day Analysis
The Canadian continues to win by default and because of the lack of confidence in the USeconomy and the US Dollar. Apparently slack Canadian data has been discounted or ignored and
GBP Mid-day Analysis
The Pound has continued to respect a pattern of lower highs since the May 6th highs and it has alsoremained off balance because of threats from the BOE on the ultra-hot UK housing market.