Forex Market
European Market Preview
EUR/USD resumed yesterday’s rally this morning in Asia after the NY session saw a bout of dollar strength as offers in the $1.2810/15 proved resilient. Asia opened at $1.1736 after lows in NY of $1.2711, but consistent buying from leveraged names in a continuation of yesterday morning’s move saw a move back up to $1.2787, […]
FX Daily Strategist: Europe
Chinese data cheers risk markets Better-than-expected data from Asia has been the catalyst for a risk rally this morning, with markets shaking off the threat from Greece. Singapore exports are a notoriously volatile release but nonetheless the 16% rebound in non-oil exports in December was a welcome turn in the recent data trend.
European Market Summary
The EUR was mostly firmer in European trade Tuesday, underpinned by solid German and Chinese economic data, but it struggled to make much headway against the dollar as the euro zone crisis continued to weigh on investor confidence.
GBP/USD ANALYSIS
GBP/USD closed Monday’s session at $1.5325, having traded through the US holiday within a range of $1.5284/1.5330. Rate initially dipped to $1.5312 into Asia, the rate taking early direction from EUR/USD, reacting to the downgrading of EFSF by S&P.
EUR/USD ANALYSIS
EUR/USD closed Monday’s session around $1.2665, having consolidated Friday’s drop to $1.2624 in generally subdued US holiday trade within a range of $1.2626/82. Rate initially dipped into Asian dealing, marking lows at $1.2648 as early traders reacted to the S&P downgrading of the EFSF from AAA to AA+, though move was expected after Friday’s action.
FX Ringside
Has SEK decoupled from ordinary drivers? The SEK is generally regarded as a cyclical and risk sensitive currency. As such it should depreciate whenever risk appetite decreases (e.g. as measured by the SEB risk appetite index) or when growth is either slowing or expected to slow.
Daily Forex Outlook
S&P-effect diminishes EUR USD (1.2725) S&P delivered yet another indictment yesterday and downgraded EFSF by a notch. Moody’s, on the other hand, maintained France’s triple-A, although with a warning about its fiscal condition and the banking sector.
European FX Market Analysis
EUR/USD – Recovery extended to $1.27714 in early Europe before demand met stronger supply from a UK name. Rate has pulled back but seen meeting will buyers in the area between $1.2750/40 which is currently keeping it buoyed.
UniCredit EEMEA Daily
News BG: Neutral – C/A surplus narrows to 3% of GDP / MinFin sold EUR 35mn 7Y GBs: avg. yield 4.45%, bid/cover 3.42 (p2) CZ: Positive – Dec PPI comes in at 4.6% yoy (0.1% mom) (p2) RO: Positive -MinFin sold RON 3.5bn 1Y T-Bills: avg. yield 6.21%, bid/cover 1.2 (p2) TK: Negative – Dec […]
Technical Analysis
EUR/USD is rechecking Fri’s mid-body point at 1.2740. Bullishly above could lead into a more pronounced correction, but back under 1.2648 would be renewed fully bearish (and target 1.2588)… AUDUSD has confirmed support below and over 1.0400 would open up for 1.0500\85…
GBP/USD ANALYSIS
Closed Monday’s session at $1.5325, having traded through a US holiday session within a range of $1.5284/1.5330. Rate initially dipped back to $1.5312 into Asia as rate took early direction from EUR/USD, reacting to the downgrading of EFSF by S&P.
EUR/USD ANALYSIS
Closed Monday’s session around $1.2665, having consolidated Friday’s drop to $1.2624 within a range of $1.2626/82, with trade generally subdued due to Monday’s MLK US holiday. Rate initially dipped into Asian dealing Tuesday, marking lows at $1.2648 as early traders reacted to the S&P downgrading of the EFSF from AAA to AA+ ahead of today’s […]