Forex Forecast

NOK wins, CAD loses US markets were back on line today, and while conditions were predictably thinner than usual, the S&P 500 managed to close a tad higher on the day despite concerns about month-end profit-taking and the damage caused by Hurricane Sandy.

Norges Bank Due North American markets are expected to gradually return to normal and with some key data points looming, investors will hope to have the means to factor in any material changes.

Euro Compared To A Diamond ECB Executive Board member Coeuré said the euro is as solid and long-lasting as a diamond (given empirical evidence suggests otherwise, Coeuré’s resort to metaphor here is perhaps understandable).

Normal Service To Resume Normal trading conditions are expected to resume on Wednesday as markets based the US are set to re-open. Whether activity in FX can pick up accordingly is a separate issue as the market continues to witness a distinct lack of event risk.

Markets Calm Amid Closures FX markets traded in very tight range overnight as the initial flurry of post-BoJ activity ran its course ahead of the London open. In a somewhat disappointing decision, the Bank of Japan expanded its Asset purchase Program by a further JPY 11 trn overnight, taking the total target size up to […]

BoJ Eases, But Not Enough The Bank of Japan expanded its Asset purchase Program by a further JPY 11 trn overnight, taking the total target size up to JPY 91trn.

BoJ In Focus Risk appetite remained subdued during New York hours amid thin trading. Stocks and bond markets in the US were either fully closed or shut down early on Monday and major exchanges announced that they will remain closed on Tuesday as the impact of Hurricane Sandy is expected to continue through Tuesday afternoon.

Subdued Activity Trading was light during London hours as markets brace for the arrival of Hurricane Sandy, affecting trading sessions. The US Securities Industry and Financial Markets Association (SIFMA) has recommended an early close at 12:00 local for today while Equity markets will be closed.

Storm Warning With Hurricane Sandy bearing down on the US Eastern seaboard, US equity markets are due to close today. The US Treasury market seems likely to shut from 12 noon EST too after the Securities Industry and Financial Markets Association issued a recommendation to that effect.

NYC Braces For Hurricane Sandy US Q3 GDP grew by 2.0% against the consensus call for a 1.8% growth. Our economists note that the growth was driven primarily by domestic demand from the household sector.

Light Flows In Holiday Trade A holiday across South East Asia and the Middle East kept flows to a minimum overnight, however a moderate risk-off mood took hold nonetheless.