Forex Analysis
JPY Mid-day Analysis
Tightened ranges continue to unfold in the Yen as the overall global economic outlook is choppy, anxietytoward activity in China is still high and progress in the Japanese recovery is still suspect.
USD Mid-day Analysis
The action in the Dollar remains unimpressive perhaps because the flow of US economic data thisweek has remained unimpressive. In fact, traders could suggest that US economic data is relatively slack whencompared to the Euro zone.
CAD Mid-day Analysis
The Canadian remains in a near term liquidation trend on the charts, especially after somedisappointment from Canadian retail sales results.
GBP Mid-day Analysis
Even the Pound has failed to benefit from positive headline flow overnight. In fact, seeing the UK CBIretail sales volume virtually explode to a +30 reading from a +13 reading in
Central European Daily
CEE markets stay calm despite tensions in Ukraine … … demand at bond auctions exceeds expectations CEE currencies showed yesterday that contagion from Ukraine has not
What if the euro view is wrong?
We have been arguing that EUR/USD should weaken from these levels on the back ofpeaking equity inflows, a turn in rate differentials and building ECB verbal intervention.
The Global Macro Pulse
The dollar is generally flat except against the NZD which rallied following the RBNZ statement. NZDUSD rallied to a high of 0.8637 following the statement,
FX Daily
German IFO expectations are due for release and we expect a decline for a thirdconsecutive month although the level is set to remain high.
FI Eye-Opener: Dovish Draghi to deliver more soft words
Bonds mostly gained yesterday on both sides of the Atlantic, but the move lower in both the US and German 10-year yields was only about 1bp.
AUD/USD Analysis
Aussie continued to trade heavy this morning after yesterday’s sharp losses after Q1 CPI data and the HSBC China flash PMI. Aussie-dollar fell to a $0.9268 low last night in the US and started in Asia at $0.9291.
EUR/USD Analysis
The pair opened this morning at $1.3817 after a $1.3811 to $1.3845 range overnight in the US. It crawled up to $1.3822 in early dealings but reversed direction soon after
USD/JPY Analysis
JPY opened at Y102.53 while euro-yen started at Y141.67. Dollar-yen bounced off Y102.44 twice in early dealings but was held up while yen cross also stayed firm amid reports of decent two-way interest in dollar-yen and other yen crosses.