Forex Market
Global Macro Daily (London Open)
Uncertainty surrounding US and Chinese economic prospects has dominated markets recently. Macroeconomic linkages have had strong implications for currencies such as the AUD and the CAD. As fears of a US slowdown recede and the policy-driven soft landing continues in China, we see opportunities in FX (see Focus below).
UniCredit EEMEA Daily
News KZ: Positive – Industrial output up 4.7% in May yoy, 5.8% in Jan-May and down 0.9% mom sa (p2) TK: Negative – April 2011 C/A posts USD 7.7bn deficit (p2) SK: Negative – May CPI comes in at 4.0 % yoy (p2)
Westpac AustralAsian Daily
Market themes & issues China data cheer up the region, AUD. A strong performance by regional equities, supported at least in part by the slew of Chinese data, sparked a recovery in risk-sensitive AUD and NZD and hurt safe haven USD.
European FX Daily – Chinese growth better than expected in May
– Antipodeans lead modest rally vs USD, Asian equities up 0.4-1.1% – Chinese production and investment robust in May, inflation rose to 5.5%yoy – US retail sales likely to be weak
FX DAILY STRATEGIST: US – 10 June 2011
Open disagreement on Greek restructuring suggest more choppiness to come China trade suggest at worse modest slowdown UK ‘stagflation’ data to heat up the BoE QE2 debate
European Sunrise – No calm before the storm
The hardened positions between the ECB and the German government about the private sector involvement in a rescue deal for Greece favours a risk off bias which supports Bunds, even though the ECB will continue to hike rates next month.
Daily Currency Briefing: Uncertainty beats credibility
G10 Currencies EUR: Why did the euro ease following the ECB press conference despite the fact that Jean-Claude Trichet gave a de-facto announcement of a rate rise in July?
HSBC: Currencies: Currency Outlook: New rules for the greenback
New rules for the greenback Since the crisis, the market has had to come to terms with new rules for currencies. For instance, a weak US economy is not necessarily USD negative. For some time we have suggested that the FX market has lost its anchor of reason, and this is still the case.
Westpac AustralAsian Daily.
Market themes & issues RBNZ boosts NZD, AUD thumped by jobs data. The more hawkish than expected RBNZ statement saw NZD/USD jump from 0.8150 to around 0.8220.