Forex Analysis
CHF Mid-day Analysis
While the Swiss has recently won by default, the market might have become short term overbought withthe recent 4 day bounce. With a slightly stronger Dollar and positive Euro zone data flows overnight,
JPY Mid-day Analysis
The recent upward bid in the Yen has been reversed early today in the wake of disconcerting revelationsthat Japan’s Current Account deficit for November was the largest ever.
USD Mid-day Analysis
The Dollar is deservedly weaker this morning in the wake of the net result from the December Nonfarm payrolls last week and also because of a positive Euro Zone Industrial Production release overnight.
Major influence of monetary policy expectations
Generally, the FX market is subject to more long-term trends or regimes, where a specific factorhas an impact on virtually all currencies in a particular way.
AUD: Interest rate differentials, or just interest rates?
Interest rate differentials are widely seen as an important driver of currencypairs. By way of example, AUD/USD moved in line with short-end interest ratedifferentials from mid-2011 to around mid-2012 (see Figure 1).
The Global Macro Pulse
The USD has regained a bit of its overnight losses. USDJPY has risen to 103.31, having traded as high as 103.50 and AUDUSD has dipped to 0.9036.
FX Daily
In the US we expect headline retail sales to have slowed markedly in December to just 0.1% m/m from a solid 0.7% m/m mainly on the back of a substantial decline in auto sales.
GBP/USD Analysis
The pair closed Monday’s NY session at $1.6387 after rate had been pressed lower through the earlier part of the day from an Asian high of $1.6508 ($1.6518 high post NFP Friday) to $1.6347 in early NY.
EUR/USD Analysis
The pair witnessed another dull session during the Asia-Pacific hours today, following its $1.3637 to $1.3677 range in the US overnight. Soon after the euro opened at $1.3671 this morning, it gravitated lower to
AUD/USD Analysis
Aussie suffered minor losses through a quiet Asia-Pacific session today, as the US currency recovered some recently lost ground. Aussie-dollar opened at $0.9054 and after some early support off $0.9050,
USD/JPY Analysis
JPY traded with slight weakness this morning vs the euro and the dollar. Dollar-yen opened at Y102.97 after dropping to an overnight low of Y102.86 last night in the US as euro-yen started the day at Y140.81.
G10 market trends – EUR still resilient
EUR: still resilient Last week’s European Central Bank (ECB) meeting saw President Mario Draghi adopt a particularly accommodating stance,