Forex Market
What matters today (Asia edition)
Developed macro 1. Risk appetite took a hit on unexpected cancelation of the EU EcoFin meeting and soft US data 2. Both EU 27 and EU 17 meetings are taking place later today. It is still unclear whether EU leaders will be able to reach a comprehensive agreement today. 3. US: September New Home sales […]
AM/FX : Tick tock tick tock tick tock
As the EU tries to get a plan together ahead of tomorrow’s deadline, markets continue to grind higher, taking out some huge levels in the process. This appears to me to be a seller’s strike in EUR/USD as there are simply no market participants willing to sell euros until the completion of the EU summit.
FX Techs: London Open
At a glance: What crisis? Despite rather mixed figures and the ongoing struggle in the EUR crisis, risk markets and the EUR kept on trading higher, but are now facing much stronger headwinds in the technical picture.
UniCredit EEMEA Daily
News BG: Neutral – Ruling CEDB party consolidates power after the first round of presidential and municipal elections (p2) PL: Mixed – FinMin J. Rostowski said that any adjustments to the 2012 budget assumptions will depend on the effectiveness of EFSF (p2) TK: Mixed – September Capacity Utilization Rate at 77.0% (p2)
Behavioral Finance: Daily Forex Outlook: ‘Standby’ euro simply reflects dollar weakness
EUR/USD (1.3905) The German Chancellor Merkel has been forcedto put the controversial issue of leveraging the EFSF to one trillioneuros under a full vote in German Bundestag. While the planned Wednesday vote does not really allow time for any serious debate, itdoes serve the markets with a reference point as far as the firepowerof EFSF […]
Australia: RBA Deputy Governor Battellino signals a ‘wait-and-see’ approach
In an address to an Australian and New Zealand investment conference, Reserve Bank of Australia Deputy Governor Ric Battellino appeared to signal a “wait-and-see” approach to policy settings.
Overnight Wrap, Orderbook & Flow, $Asia, Levels
1) Overnight Asia Wrap Euro opened in Asia at 1.3930 after highs of 1.3957 in NY, remaining buoyed by optimism of a comprehensive EU package and risk rallies in the equity and oil markets following yesterday’s strong Chinese PMI and US earnings data.
What matters today (Asia edition)
Developed macro 1. The macroeconomic calendar is relatively poor of indicators today. The ECB is conducting a LTRO with 12-month maturity. 2. US: October Consumer Confidence is likely to post a decrease in line with the drop in the October University of Michigan consumer sentiment index.
HSBC: Currencies: Currency Weekly: Sterling’s new-found stability
Trade weighted stability for sterling means that it has become constrained within relatively tight ranges against both USD and EUR, suggesting this is a good time for hedgers to act. Loose monetary policy and tight fiscal policy would usually be a recipe for currency weakness. Why is GBP stable?
Behavioral Finance: Daily Forex Outlook: US Policy response is more pressing than crisis
EUR/USD (1.3885) The latest eurozone headlines suggest that the German model of a revamped EFSF which includes the insurance and guarantee functions may emerge as the eventual solution to the EU debt crisis.
What matters today (Asia edition)
Developed macro 1. All eyes remain on Europe as the EU Summit on Wednesday will be eyed for a concrete resolution to the region’s crisis 2. Eurozone ‘flash’ PMIs to deteriorate further in October, with the services sector set to underperform
Weekly Calendar – The market mood
Risk aversion is no longer declining and markets are on hold waiting for the conclusions from discussions to shore up the Eurozone. In any case, they will have to be patient a little longer than first expected.