Forex Market
AUD/USD Analysis
Opened in Asia at $1.0459 after another mauling in Europe and NY yesterday which saw the pair fall from $1.0528 to $1.0421 on China concerns and Pimco forecasts of large falls in GBP, EUR and AUD. AUD received an early lift in Asia this morning on talk of a large Toshin issuance next week, together […]
USD/JPY Analysis
Opened in Asia at Y3.39 after trading down from early highs of Y84.10 in NY to Y83.30 on the back of a reversal lower in US treasury yields. Asia this morning has seen the pair largely at the mercy of cross moves. Early EUR/JPY demand lead the dollar up to Y83.47 before a surprise Japanese […]
AUD pushed lower as China flash PMI data slides further
Signs of weakening global growth were reflected in today’s flash estimate of China’s manufacturing PMI data for March, which slid to 48.1 from 49.6 last time. Note this is the first “real month” of data this year now that the Lunar New Year distortions are out of the way and is not suggesting a rosy […]
FX Daily Strategist: US
FX markets lacking direction, correlation between yields USD looser than many supposed FX markets continue to trade with a lack of clear direction, characterised by quick reversals and a range of mostly unconvincing explanations being wheeled out for the moves. A slow grind higher in equities in the US session, after sharp opening losses suggested […]
Behavioral Finance: Daily Forex Outlook: Euro demand emerges from the dollar-zone
EUR USD (1.3270) The currency markets appear to be struggling to interpret the risks for the euro and for the dollar. On one hand, high oil prices, rising US long yields, and the prospects of tighter Fed policy earlier than 2014, are considered the most apparent short-term challenges for the dollar; on the other, investors […]
GBP/USD Analysis
Closed in NY at $1.5859 (200-dma Tuesday), off recovery highs of $1.5887, after rate had rallied back from earlier lows of $1.5831. Rate marked Asian lows at $1.5856 in opening trade before edging higher, the rate taking its cue from EUR/USD rise, trading to a high of $1.5896 before momentum faltered.
EUR/USD Analysis
Closed in NY at $1.3222, having seen recovery highs in this session of $1.3253, off earlier lows of $1.3172. EUR/USD was on the rise into early Asia, tripping stops as rate moved above the NY high before demand for EUR/JPY, as rate targeted and triggered the barrier at Y111.00, boosted the move to $1.3273.
AUD/USD Analysis
Opened in Sydney around $1.0480 and slipped to $1.0467 in the wake of yesterday’s sharp BHP led fall from $1.0625 to NY lows of $1.0457. Rumoured strong bids from exporters ahead of $1.0450 deterred further downward momentum and the pair headed higher led by Japanese, Singapore and HK names tripping stops up through $1.0500 to […]
USD/JPY Analysis
Opened in Asia at Y83.73 and came under pressure from the start on exporter sales, but the move was cushioned by demand in EUR/JPY into the Tokyo fix which pulled the dollar back up from a fall to Y83.53 with the pair recovering to Y83.74.
Fears of China slowdown retreat; risk currencies regain ground
In contrast to BHP Billiton’s gloomy outlook for China demand for iron ore announced yesterday, Australia’s Bureau of Resources and Energy Economics (BREE) issued its latest forecasts – and it was certainly upbeat. The agency expects iron ore exports to rise by more than 50 percent by 2016/17 compared with last year on the back […]
GBP Analysis
Cable closed in NY at $1.5891, off session highs of $1.5915, after rate had been pulled higher on the coat tails of euro-dollar’s stronger recovery, which allowed the cross to extend its recovery off lows of stg0.8283 to stg0.8343. Cable closed above its 200-dma (Mon $1.5861, today $1.5859) and seen supporting the pound’s underlying buoyant […]
EUR Analysis
EUR/USD closed in NY at $1.3240, having seen its recent recovery extend to highs of $1.32659 as the market reacted to the Greek CDS settlement, the EFSF sale of 20-year bonds and confirmation that the ECB is putting its bond-buying programme on the back burner.