Forex Analysis

FX SENTIMENT REPORT

The net short EUR position collapsed from $8.4bn last week to $1.3bn this week, a level not seen since February and one that suggests a bullish turn in EUR sentiment.

NZDUSD and AUDUSD up to typical late Friday mischief

The liquidity in the Antipodeans gets rather iffy late on Fridays, as Australia and New Zealand are well into their weekend revelry.

Asset purchases tapered in June?

We expect the FOMC to taper asset purchases either at the June or September meeting.

Mid-Day FX Market Analysis

USD: The Dollar was able to put together a moderate rebound this morning, but remains well inside of yesterday’s trading range.

FX Market Commentary

EUR/USD holding near the recent top even as global tensions ease Global repositioning shifted into lower gear. The decline of USD/JPY, a key input for other USD cross rates, slowed.

Overnight Price Action Overnight Wall Street rallies helped lift Asian markets. Asian equities opened higher and the USD weakened as the market adjusted positions ahead of Fed Chairman Bernanke’s testimony and

More US economic data to end the week, industrial production…

The US economic data on the day was a little better than expected and supported markets yesterday. Advance retail sales rebounded by 0.6% MoM in May and

Working through the US soft patch

Outlook for 2014 strengthens • The US economy is working its way through a soft patch due to substantial fiscal tightening.

FX Daily

Market movers today • In the US, preliminary University of Michigan confidence for June is due to be released.

USD/JPY Analysis

The pair closed the NY session at Y95.40, the rate having recovered off a NY session low of Y93.92 to Y94.53 before slightly easing off into the close.

GBP/USD Analysis

The pair closed Thursday in NY at $1.5718 after rate had seen a stop driven drive up to $1.5737 as strong demand emerged at the 4pm WMR fix,

EUR/USD Analysis

The pair closed in NY at $1.3373 having recovered off a session low of $1.3279 to $1.3379 as the dollar was sold off in reaction to a WSJ Hilsenrath article,