Forex Market
UniCredit EEMEA Daily
News CZ: Negative – TOP 09, one of the government’s junior coalition parties, threatens to quit the government if the cabinet fails to join the EU fiscal compact (p2) RO: Positive – MinFin sold RON 917mn 3Y GBs: avg. yield at 6.95%, bid/cover 2.17 (p2)
Behavioral Finance: Daily Forex Outlook: ECB disabuses market of ’round-trip’ belief
EUR/USD (1.2870) Maybe the most important revelation in yesterday’s ECB press conference was that the banks that borrow via the LTRO are not the same ones that re-deposit money overnight. Probably because the amounts are similar, there had been a common assumption that liquidity had been leaving by one door at the ECB and then […]
Technical Alert – euro short covering across the board
One big theme emerging yesterday, euro shortcovering. So the common currency up agains everthing else, even helping pushing AUD and NZD lower ag the greenback. The correction will likely continue for a day or two longer given the extremely oversold status.
GBP/USD ANALYSIS
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. GBP marked lows in Asia into early trade at $1.5332 before edging up to an early high […]
EUR/USD ANALYSIS
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.
EUR’s comeback stalls in Asian session
Asian markets have not pushed the EUR’s rebound seen in the European and US sessions Thursday. There were no data releases and given it is a US holiday Monday, trading ranges were very tight. And perhaps superstitious participants noted it was Friday the 13th!
USD/JPY ANALYSIS
The USD/JPY trading a Y76.73-85 range after opening the session at Y76.76. Downside pressure still remains for the dollar as EUR/JPY rallies continue to attract sellers above Y98.50, but stops are noted through Y98.60 and Y98.85 with large offers said to lie at Y99.00.
Market Analysis
Strong auctions yesterday in Spain and Italy led to a welcome breather in the beleaguered sovereign debt markets yesterday which also prompted some decent short covering in EUR/USD after the very weak start to 2012. EUR/USD opened in Asia at $1.2814 after touching highs of $1.2845 in NY.
Time for a Euro squeeze after Draghi and ugly US data?
Ugly US data sees earlier risk rally turning tail rather than rallying on QE3 anticipation. Will the Euro see a squeeze in the crosses after ECB fails to offer rate cut hint and after strong Spanish and Italian debt auctions?
EUR/USD ANALYSIS
Opened early Europe at $1.2718 EUR/USD closed in NY at $1.2706, having recovered off session lows of $1.26615, with this corrective move extending into early Asia to around the $1.2720 level. This correction was given a slight knock as the PBOC fixed the yuan rate at a higher level than expected, as well as Chinese […]
GBP/USD ANALYSIS
Opened early Europe at $1.5322 stg0.8300 GBP closed in NY at $1.5330, the rate having recovered off traded lows of $1.5308. Rate consolidated its Wednesday sell off with trade through Asia contained by $1.5310/35, trading toward the upper end of this range into early Europe.
Europe Rates Today: Spanish auctions, ECB & BoE decisions
Spain offers three- and four-year Bonos Today’s bond auctions from Spain (results after 10:30CET) will be the first ones of this year and pose a strong test of the recent outperformance of Bonos. A new three-year benchmark, SPGB4 7/15 will be launched whilst SPGB3.25 4/16 and SPGB4.25 10/16 will be re-opened for a combined amount […]