Forex News
Sidewinding market continues into FOMC minutes
The market shows an odd combination of relative complacency in risk assets while bonds continue to suggest weak growth prospects. Fairly dovish FOMC minutes likely priced in.
Spain: Banking bailout, austerity measures and next steps
Spain is the first eurozone country to receive a banking sector bailout outside a Troika programme from European partners as well as further concessions including non-seniority of ESM funds once the ESM starts to lend to Spanish banks.
Asia today: Currencies range at lower levels after German news
Currencies were steady at lower levels in the Asian session Wednesday, though a slight uptick in risk appetite was felt towards lunchtime. In EURUSD, the early attempt at a rally was rebuffed at the 1.2330 level in the US session after the German Constitutional Court delayed its decision on whether ratification of the new ESM […]
Waiting for German Constitutional court and the FOMC minutes
No fireworks again today as the market eyed whether the German constitutional court would thrown the entire ESM ratification process into chaos. US FOMC minutes are up tomorrow.
Eurogroup meeting: Our initial thoughts
A long meeting of the euro area finance ministers (Eurogroup) concluded without full clarity on some of the important details on the policy decisions already taken at the previous EU summit (28-29 June), including the direct bank recapitalization of banks by the ESM, once the common European supervisor is established (see official eurogroup statement: Eurogroup Statement).
NOR: Underlying inflation below Norges Bank’s forecast
CPI: -0.5%, 0.5% y/y (SEB expected -0.1%, 0.8% y/y, previous 0.0%, 0.5% y/y) CPI-ATE: -0.3%, 1.2% y/y (SEB expected 0.0%, 1.5% y/y, previous 0.4%, 1.4% y/y)
UK industrial production rises strongly, boosted by extra working day
Industrial output increased significantly in May, driven by manufacturing and energy production. This “good news” should be interpreted with caution, however, as the extra working day during May would have boosted production.
Asia today: Bad news for the AUD as China import growth slows
AUD took a hit in the Asian session, falling across the board and losing some 30 points versus the US dollar, after the China trade report for June showed that port growth had slowed.
Market calms after Friday histrionics. More volatility to come
After Friday’s fireworks, things got pretty quiet today, but there is plenty to ponder in the pipeline of event risks this week as we may have just seen the beginning of a bigger move.
GBP/USD Analysis
Closed in NY Friday at $1.5490, off session lows of $1.5462. Rate was pressed lower into early Asian trade, as rate tracked the early downside pressure on EUR/USD, though rate remained above its Friday lows, meeting demand around the $1.5470 level.
Asia today: Inflation benign in China; A cue for more easing?
With the aftermath of Friday’s US non-farm payroll report resulting in a definite risk-off sentiment, risk currencies took another dip lower at the start of trading in Asia, but failed to dramatically follow through.
NFP: is “slightly bad” worse than “really bad”?
UK (dis) inflation UK core PPI Output inflation matched its lowest month-on-month reading for the last 12 years or more in June, underlining the deflation threat as promoted by the BoE as it decided to increase its asset purchase target this week and no doubt aided somewhat by a stronger sterling vs. the euro over […]