Forex Market
EUR/USD ANALYSIS
Closed in NY Friday at $1.2678, having seen lows of $1.2624 following leaked reports of the later confirmed S&P downgrades, as well as concerns over Greek debt talks. Rate opened into Asia at $1.2647, with pressure on the EUR again emerging as strong sell pressure emerged onto EUR/JPY.
EUR steady at 2012 lows in Asia; the calm before (another) storm?
The EUR steadied in quiet Asia trade after a hefty u-turn on Friday. Today’s US holiday likely played a part in the moribund trade while data was confined to second-tier releases. In Japanese data, core machinery orders bounced back by an impressive 14.8 percent in November, more than double market expectations for a 5.1 percent […]
USD/JPY ANALYSIS
Opened with a small gap higher at Y77.02 after highs of Y77.01 and a close of Y76.97 in NY. The rally following Friday’s late announcement from S&P of 9 EU nation downgrades continued in early trade with a spike up to Y77.14 before heavy EUR/JPY sales led a sharp move back down through Y77.00 to […]
AUD/USD ANALYSIS
The AUD dipped Monday, hurt along with regional equities by a late Friday decision by S&P’s to downgrade nine European nations. The wave of rating downgrades that hit France and eight other euro-zone nations was particularly harmful to the risk-sensitive AUD as the move cast fresh doubts over the monetary union’s ability to bail itself […]
S&P downgrade could be major game changer
Market impact S&P’s report is the most honest, politically incorrect report on the Eurozone debt crisis I have seen in a long, long time. It could increase the focus on how the policymakers continue to throw liquidity at a solvency issue and also underline how focus on austerity can leave us all worse off, as […]
US Market Summary
The EUR weakened to a 16-month low versus the dollar Friday on widespread downgrades of euro-zone countries by S&P’s Ratings Services. The ratings company downgraded nine of the 17 euro-zone countries, with the announcement coming after European financial markets were closed for the weekend and shortly after the U.S. stock market also had closed.
EUR Analysis
The EUR tumbled to a fresh session low against the dollar in Friday trading in New York amid talk that Standard & Poor’s is on the brink of downgrading several European countries. The common currency dropped as low as $1.2688, down from $1.2814 late Thursday. It was most recently trading at $1.2698.
CAD Analysis
The CAD was under pressure, as the USD broadly firmed Friday morning, after European Union sources said several euro-zone countries could face “imminent” downgrade. The USD was at C$1.0230 Friday morning, from C$1.0191 late Thursday.
European Market Summary
The low bid-to-cover ratio at the Italian bond auction disappointed the markets and left the EUR sagging, pushed core government bonds higher but had little impact on equities. Thursday’s very strong Spanish auction results set the bar too high for Italy, and the cover of just 1.22x couldn’t make up for the fact that the […]
GBP/USD ANALYSIS
Opened early Europe at $1.5352 stg0.8364, GBP/USD closed in NY at $1.5333, the rate having been pulled higher by EUR/USD stronger recovery to a session high of $1.5367, as it recovered off early Europe lows of $1.5279. EUR/GBP recovery driving to stg0.8374 provided a counter.
EUR/USD ANALYSIS
Opened early Europe at $1.2840, EUR/USD closed in NY at $1.2814, after the rate performed an impressive recovery from pullback lows of $1.2715 to $1.2846 on market reaction to ECB Draghi press conference comments, following the no change in interest rates announcement/reference to signs of stability.
What matters today (Asia edition)
Developed macro 1. Risk appetite was boosted by Draghi’s positive comment and very successful Spanish bond auctions 2. We have fine-tuned our ECB rates forecasts following yesterday’s press conference. We now look for the Refi rate to be cut to 0.75% in March and to 0.50% in Q2. 3. Mixed news continue to come in […]