Forex Market
GBP/USD ANALYSIS
Closed in NY at $1.5460, just off session highs of $1.5470. Rate initially marked lows into Asian trading at $1.5450 before picking up fresh demand, the recovery through the overnight session basically tracking EUR/USD, as the cross held within a range of stg0.8252/67.
EUR/USD ANALYSIS
Closed in NY Monday at $1.2765, toward the upper end of its intraday trading range of $1.2666/1.2785. Rate initially edged higher into early Asian dealing, with talk of stops above $1.2785, and larger ones above $1.2800, seen as the early attraction.
Asian Market Summary
Regional markets are mostly higher as optimism over the U.S. economic recovery overshadows concerns about the European sovereign-debt situation; the Nikkei is +0.4%, the S&P/ASX is +1.1%, the HSI is +1.0%, the Kospi is +1.5%, the Taiex is +1.2%, the Sensex is +1.7%, the Shanghai Composite is +2.5% and the STI is +0.9%.
EUR holds on to gains; AUD outperforms following better data
A relatively stable session for currencies during the Asian session with the EUR able to cling on to the tentative gains made yesterday. The AUD was one of the better performers with building approvals bouncing back in November from a revised 10.0 percent fall the previous month.
JPY ANALYSIS
Was largely a non-event in Asia with the dollar hemmed into another very tight range of Y76.78-91 after opening the session at Y76.83. EUR/JPY was equally uninspiring in a Y98.03-28 range with the main interest being the yen-antipodean crosses.
Asian Market Analysis
Despite negative EURO data and the resignation of SNB chairman Hildebrand, the EUR survived a relatively tame session in NY yesterday. China’s strong trade surplus in December, and German negative yields from yesterday’s auction have so far kept markets calm after the inconclusive Merkel/Sarkozy meeting, despite increasing possibility in analysts and the IMF’s minds that […]
EURUSD rangebound ahead of ECB? Also – SNB’s Hildebrand resigns.
EURUSD has seen a steep descent over the last few trading days – is it ready to take a breather back towards resistance ahead of Thursday’s ECB? Also – EURCHF fairly steady after Hildebrand resignation. SNB’s Hildebrand resigns – EURCHF drops EURCHF was roiled today as the SNB’s Hildebrand resigned over the currency transactions (CHF […]
EURO ANALYSIS
The ECB is expected to take a pause in its interest-rate-cutting campaign next week, but that’s not likely to bring a reprieve to the EURO, which remains trapped in a vicious cycle of rising government borrowing costs and weak economic data.
The Week Ahead
Today we take the market temperature and look at where to focus our attention as the week unfolds. Equities – Pivot area for US S&P500 and Earnings Season kick-off Last week ended in about as stale a stalemate as possible for equities. Though the key equity market benchmark, the US S&P500 managed an enthusiastic Tuesday […]
FX Daily Strategist: Europe
Strong employment report fails to turn poor market sentiment Friday’s strong US employment report failed to drive risk higher as US equities closed in the red and the USD remained on a firm footing; this week has begun on a similarly soft tone, with early morning stops sending EURUSD and EURJPY to fresh lows for […]
Merkozy to meet, while the EUR continues to struggle
Before I get stuck into what the day may hold in store for us, I just wanted to note the amazing and ever increasing amount of noise present in the market at the moment. It’s always been critical to keep an eye on all global macroeconomic and political events as they unfold as they invariably […]
Merkel, Sarkozy to detail fiscal compact; China eases
Today French President Sarkozy will meet with Chancellor Merkel in Germany where the two Eurozone heavyweights will seek to hammer out the details of the so-called fiscal compact agreed at the EU summit on December 9, 2011. Meanwhile in Asia, the world’s second largest economy, China, is showing signs of monetary easing, which sent Chinese […]