Forex Forecast

Euro Rebound Continues The euro continued its broad-based advance overnight in the wake of Thursday’s upbeat ECB press conference.

Yen Still The Focus USDJPY continued its upward march overnight trading through 89.00 for the first time since July 2010. Japan’s trade balance for November chalked up yet another deficit,

China Trade Rebounds G10 FX currency markets were driven by Chinese data releases overnight. A strong set of Chinese trade numbers boosted the Australian and New Zealand dollars in particular,

Still Waiting On Japan With the BoJ’s next policy decision now less than two weeks away, investors are still weighing (and re-weighing) the likelihood of forceful policy action.

Positive Drivers Lacking Risk was fast out of the blocks on Monday but ultimately there was a failure to consolidate as investors acknowledged that positive drivers were somewhat lacking.

Payrolls Conveys Stability The December payrolls report was solid, but in the wake of the release of the same month’s FOMC minutes the day before,

Payrolls due, FOMC Splits Markets’ psychological expectations for payrolls today are likely higher on the back of Thursday’s firm ADP print,

Risk Consolidation Sought The buoyant reaction to the (temporary) resolution of the US’ fiscal issues clearly shows that many in markets clearly feared a more adverse outcome.

Cliff Averted Risk appetite was supported overnight after both the US Senate and the US House of Representatives approved a Bill designed to avert the full force of the US fiscal cliff. Tax hikes will still happen,

Going Over The Cliff Democrat and Republican leaders in the Senate have so far failed to agree on how to avert the fiscal cliff,

House To Be Recalled The countdown to the US fiscal cliff continues with few obvious signs of progress over the past week. All hope is not yet lost however.