Forex Market
HSBC: China CPI to ease further, RRR cut in weeks
December’s CPI and PPI numbers came broadly in line with market expectations. Despite a seasonal rebound of food prices, headline CPI eased yet again thanks to the continuous slowdown of non-food prices driven by a sharp deceleration of PPI. Prices are still likely to spike temporarily around the Chinese New Year, but the overall inflation […]
JPY ANALYSIS
Opened in early Europe at Y76.89 and Y97.81 Little to be said of the yen complex overnight after the dollar opened in Asia at Y76.86 and traded a Y76.82-92 range. EUR/JPY was little better following EUR/USD moves with a high of Y97.85 from early lows of Y97.67.
The Markets in 2012 – Foresight with Insight
The year just ending was challenging for the world economy – the US economy sufered a signifcant slowdown, Japan was hit by a devastating earthquake and Europe’s sovereign debt crisis deepened. Despite these shocks, a strong growth performance in emerging markets enabled the global economy to expand by 3.5% in 2011, a pace we expect to continue in 2012, as a rebound […]
GBP/USD ANALYSIS
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, with rate trading toward the upper end of this range into early Europe.
EUR/USD ANALYSIS
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 corrective move was given a slight knock as the PBOC fixed the yuan rate at a higher level than expected, Cny6.3230 vs an expected basket level of Cny6.3171, as […]
AUD ANALYSIS
Opened in Asia at $1.0310 on a relatively firm footing after recovering from midday lows yesterday of $1.0263. early exporter demand led a small move up to $1.0318 ahead of the China CPI release, but the pair then came under pressure despite the data coming in on expectations, as talk of an imminent RRR cut […]
USD/JPY ANALYSIS
Little to be said of the yen complex this morning after the USD opened in Asia at Y76.86 and traded a Y76.82-92 range. EUR/JPY was little better following EUR/USD moves with a high of Y97.85 from early lows of Y97.67.
Market Analysis
The USD is trading mixed in midmorning Asian market action, the EUR having given up some modest early losses while the JPY continues to trade sideways against the USD. Chinese CPI coming in as expected have helped risk appetite somewhat, although currencies like AUD lost ground on expectations the data will cement expectations of Chinese […]
UBS Morning Adviser America
Euro Tests 1.27 After a subdued opening, the euro and other risk assets came under pressure. While the move was largely stop-loss driven, comments by David Riley, the head of sovereign ratings sparked some selling. Riley said that the ECB must step in to prevent a ‘cataclysmic’ collapse of the euro.
EUR/USD ANALYSIS
Opened early Europe at $1.2744 EUR/USD closed in NY at $1.2778 after pulling back from session highs at $1.2819. Rate posted an early high of $1.2779 into Asian dealing before reversing tack. US macro sales were cited for providing the early downside pressure, with rate also pressed lower as stops through Chf0.9500 in USD/CHF were […]
JPY ANALYSIS
Opened in early Europe at Y76.91 and Y98.14 Another uneventful session for dollar-yen in Asia overnight as the pair continued to wallow in very tight ranges. EUR/JPY eased on Japanese sales from Y98.20 to Y97.93 abetted by some EUR/USD sales from a US macro account.
ECB and Bank of England meeting previews
Monetary policy meetings will be held in the Bank of England and European Central Bank tomorrow and the latter at least has the potential to deliver important new developments. ECB My guess would be that the desire to cut rates again will not yet be irresistible for the Governing Council, as also indictaed by the […]