Forex Analysis

GBP/USD Analysis

The pair closed in NY Tuesday at $1.5643, off recovery highs of $1.5653 after the dollar had been pressed lower during the NY session on the back of a sharp,

EUR/USD Analysis

The pair closed Tuesday’s NY session at $1.3312, off late recovery highs of $1.3318 after rate had reacted to a sharp sell off in dollar-yen,

USDCHF looking ugly

USDCHF was already in a rout, but the sell-off today has been turbo-charged by the ongoing rout in risky assets,

United Kingdom: Is the BoE jumping the gun?

The second estimate of Q1 GDP confirmed the 0.3% Q/Q growth figure reported in the preliminary estimate.

Mid-Day FX Market Analysis

USD: The Dollar has taken a negative turn over the past few hours and is posting moderate losses coming into this morning’s trading session.

USD weak despite Fed-tapering discounted elsewhere

On May 22, the Chairman of the Federal Reserve, Ben Bernanke delivered key testimony to Congress, sparking a series of market corrections,

CEE currencies corrected previous gains Czech and Hungarian inflation remains low Central European currencies, temporary boosted by last week´s intervention of the Polish central bank, corrected their gains yesterday.

$-Bloc FX’s Model Behaviour

Our shorter-term models indicate AUD, NZD are cheap against USD, while CAD is fair. To the extent the market wants to start to price the end of the “QE era”,

Japan: BoJ ignores market call for another fix

• Bank of Japan (BoJ) did not announce any new measures to stem the volatility in financial markets and, by not mentioning the volatility in financial markets in the statement,

Morning FX Market Commentary

Currencies: Dollar still fighting an uphill battle As was the case after Friday’s US payrolls, the dollar remains in the defensive. The US currency hardly profits from a rise in core bond yields.

European economy showing more signs of improvement, another quiet day on the calendar

Main market theme to start the week was ongoing relief following Friday’s decent US labour market report. USD/JPY was the standout mover across markets.

USD/JPY Analysis

The pair closed in NY Monday at Y98.82 after rate had corrected back from a high of Y99.28 (the high driven by S&P upgrading the US credit outlook),