Forex Market
Big G10 FX charts show Euro and Aussie at new opposite extremes
USD The USD/G10 basket has yet to extend beyond its recent tops as the pro-risk currencies have held their own against the greenback even as the Euro has suffered of late. The relative strength of the greenback in an environment of still elevated risk appetite is significant relative to previous behaviour.
HUF and puff: blowing down the Eurozone house?
“The French don’t even have a word for entrepreneur” – George W. Bush Yesterday’s French Bond auctions (predominantly in the 10 and 30 year maturity), while blamed for the sell-off in the EUR, were in fact not as bad, at least in demand terms as the German auction the previous day (or indeed the failed […]
Non Farm Friday Funny’s
The end of the first week of the new year brings with it the NFP Friday afternoon circus. Having seen a much stronger ADP print yesterday (many believe it to be a good indicator of NFP) most in the market are now looking for a very good print this afternoon. I personally don’t fall into […]
Australia: State revenues ride the mining capex wave; QTC spreads to benefit
Bottom line The mining boom delivers significant revenue benefits to the resource-rich states both directly and indirectly via the capex boom. Mining capex drives employment (payroll tax) and population growth, state final demand and, hence, house prices (stamp duties). Given current semi-government bond relativities, investors who expect the mining capex boom to continue should view […]
HKD/USD ANALYSIS
The HKD rose slightly against the USD Friday due to a tighter supply of the unit in the local interbank market. In late Asian trade, the U.S. dollar was at HK$7.7660, slightly down from HK$7.7667 late Thursday. The USD unit was fixed at HK$7.7662 earlier Friday.
UK M4 figures imply further Quantitative Easing
A quiet start to the year in the UK, both politically and economically, with no bold headlines screaming for attention, but hidden amongst a first week of relatively strong UK data, (all the three Purchasing Managers Indices – for Manufacturing, Construction and, most importantly, Services – came out slightly stronger than expected), were some ominous, […]
Market Preview – 6 January 2012
Forex Overnight: EUR trading under pressure The EUR is trading lower against the USD, this morning, amid rising concerns about the European debt crisis, after French bond yields rose at an auction yesterday. Markets are eagerly awaiting the release of Eurozone consumer confidence and U.S. non-farm payrolls data later today. At 6 am, the EUR […]
GBP/USD ANALYSIS
Closed in NY at $1.5505, after seeing lows in this session at $1.5466 as rate was pulled lower by deeper EUR/USD slippage, with EUR/GBP finding support around stg0.8250, eventually able to mark lows in this session at stg0.82495.
EUR/USD ANALYSIS
Closed in NY at $1.2789 after recent sell off extended to $1.2770. Early trade in Asia was contained within a range of $1.2785/00 (Asia high $1.27993), with short covering by macro names countered by negative news out of Greece as well as model supply.
Asian Market Summary
Regional markets are lower as ongoing European sovereign debt woes weigh investor sentiment; the Nikkei is down 1.2%, the S&P/ASX is down 0.8%, the HSI is down 1.4%, the Kospi is down 1.1%, the Taiex is down 0.1%, the Sensex is down 1.1%, the Shanghai Composite is down 0.1%, and the STI is down 0.4%.
Asian Market Analysis
EUR/USD opened in Asia at $1.2789 having been as low as $1.2770 ahead of the NY close, amid a heavy tone following strong ADP jobs data, with investors now seemingly preferring the USD over European and emerging assets.
EURUSD: fresh lows on feeble French auction, US ADP payrolls
The Euro sell-off deepened yet again today on a feeble French bond auction and on the need for Spanish banks to bolster their capital. Then a strong US ADP report had the pair trying the 1.2800 handle for the first time in 15 months.