Forex Market
Behavioral Finance: Daily Forex Outlook: Bernanke urges EU to quick-fix crisis
EUR/USD (1.3290) With Ben Bernanke highlighting the eurozone turmoil as a significant source of stress in global financial markets and also for the US economy, the negative spotlight remains on the tortuously slow decision-making process in the EU.
HSBC Macrobullets – Wednesday 05 October 2011
TOP Moody’s downgraded Italy to A2 from Aa2, and warned that further downgrades were possible because of a “material increase” in funding risks for EZ countries. {http://reut.rs/qp1qub} EU fin mins are examining ways to co-ordinate bank recapitalisations after they agreed that additional measures were urgently needed to shore up institutions, the FT reports. {http://on.ft.com/mRshk6}
UniCredit EEMEA Daily
News HU: Neutral – 3m t-bill auctions sees 2.65 bid/cover on limited supply RU: Positive – Sept CPI falls to 7.2%yoy from 8.2%yoy Today’s Events CZ: CZK 7bn 2021 GB auction / HU: NBH minutes / KZ: KZT 15bn 2013GB auction / PL: NBP rate decision / RO: August Wages / RU: September Services PMI […]
Japan considers additional EFSF bond purchase, but timing is not very helpful for EUR
Today’s Nikkei daily newspaper reports the Japanese government has begun to consider purchasing additional EFSF bonds, and Chief Cabinet Officer Fujimura (the PM’s spokesperson) confirmed the general idea.
Behavioral Finance: Daily Forex Outlook: Euro pays the price of EU delays
EUR/USD (1.3190) With the eurozone financial ministers’ meeting to decide on the EUR8 billion package for the Greek bailout postponed to mid-November, the single currency has become a victim of political delay.
European FX Daily – Focus on Bernanke testimony
– Eurogroup cancels 13 October meeting about Greece – The AUD and KRW lead sell-offs, Asian equities down 0.4%-5% – RBA opens door for policy rate cuts – Bernanke to testify to the Joint Economic Committee
GAVIN STACEY : Today the RBA left the cash rate unchanged at 4.75%
Today the RBA left the cash rate unchanged at 4.75%. While uncertainty about global growth remains high, sitting on the sidelines is most likely to be the RBA strategy. The RBA continues to remain caught between the longer term positive fundamentals (ToT and mining capex) and the near-term growth risks originating in EU. Th
UniCredit EEMEA Daily
News BG: Neutral – Cumulative budget deficit flat at 1.0% of GDP in August, Minfin sells 10?Y bonds at 5.28% (p2) CZ: Mixed – September manufacturing PMI slips to 52.3 (p2) RO: Neutral – MinFin places yesterday RON 297mn in 6M t-bills: yield at 6.69%, bid / cover ratio 2.42 (p2)
Risk traders met today
A high degree of uncertainty remains- that’s a given. EURO to trade sideways with a slight bearish tone until further news. The group believes potential redemption demand has led to risk being widely reduced and cash being held.
HSBC Macrobullets – Monday 03 October 2011
TOP New Greek austerity plan short of target: The draft budget calls for a deficit of 8.5% of Greece’s gross domestic product in 2011, falling short of a target of 7.6%, Reuters reported. The deficit will be reduced to 6.8% of GDP in 2012, but still short of the mark of 6.5% of GDP, according […]
Overnight Asia Wrap, Orderbook & Flow, $Asia and levels..
1) Overnight Asia Wrap Risk off as all of the news over the weekend was negative. “Greece to Miss Deficit Targets Despite Austerity”, “Banking Crisis Set to Trigger New Credit Crunch” just to name a few. News out of Belgium that Dexia became the latest bank to seek bail out funds.
CEE Weekly: Battling increasing pressure
Trade of the week: hard currency vs. local currency bond switch opportunities As positioning is stronger in local currency than hard currency EM bond funds (also evidenced in last week bond fund flow data) while USD appreciation seems to be the main driver of recent EM underperformance, we believe it makes sense to investigate switch […]