Forex News
US GDP unexpectedly revised down; jobs data improves again
US futures hold gains on jobs data despite GDP report S&P 500 Index futures are up 0.4 percent and almost unchanged from the levels before the release of the third 3Q US GDP report and initial jobless claims. The GDP report revised down growth in the third quarter to 1.8 per cent QoQ annualised compared […]
GBP/USD ANALYSIS
Opened early Europe at $1.5664 stg0.8328 GBP closed in NY at $1.5675, off pullback lows of $1.5648 after rate had seen highs earlier in the day of $1.5775. Despite the pullback, which was seen led by EUR/USD sharp reversal off its post LTRO spike highs, GBP enjoyed some buoyancy as EUR/GBP managed to extend its […]
USD/JPY ANALYSIS
Opened in Asia at Y78.06 easing to Y78.02 before some early fixing demand was noted ahead of tomorrow’s Japanese holiday. The USD failed however to break above Y78.14 in very subdued trading and later eased back towards the earlier low.
Will US data continue to defy negative drumbeats?
Since early August when risk assets plunged and European peripheral bond yields rose to dangerously high levels investors have been worried about the economy going into a new recession. Since then, Europe has been weak but the economic indicators in the Eurozone are not crashing but just slowing; the region’s economy is likely in a […]
BUND ANALYSIS
German government bonds are opening lower Thursday on profit-taking following strong rebound yesterday in the wake of the ECB’s inaugural 3-year LTRO. Most in the market have dismissed the ECB’s 3-year LTRO as a damp squib and another can kicking exercise, where the central bank has merely pumped cheap money into the euro banking system.
UK Morning Briefing
Forex Overnight: EUR trading almost flat The EUR is trading almost flat against the major currencies, this morning, ahead of the European Central Bank (ECB) President, Mario Draghi’s speech later today. Investors have turned skeptical about the liquidity situation in the European financial system, following the higher-than-expected demand by banks for the first tranche of […]
GBP/USD ANALYSIS
Closed in NY at $1.5675 off pullback lows of $1.5648, after rate had seen highs earlier in the day of $1.5775. Despite the pullback, which was seen led by EUR/USD sharp reversal off its post LTRO spike highs, GBP saw some buoyancy as EUR/GBP managed to extend its recent pullback below stg0.8330 and on to […]
GOLD ANALYSIS
Spot gold prices closed virtually unchanged yesterday with an early spike up to $1641.90 in the european session gradually unwound in NY as early euphoria over the ECB’s LTRO tender was followed by some pessimism. Italy and Spanish yields rose and some hefty macro EUR/USD sellers led to a return of risk aversion which in […]
EUR/USD ANALYSIS
Closed in NY at $1.3048, off pullback lows of $1.3025 seen after the downgrading of Hungary to junk status by S&P. Rate had seen highs Wednesday of $1.3199 post the LTRO 3-year funding by the ECB, the initial react to the high take up quickly reversing as market suggested that funds may not be all […]
EUR reverts back into range after yesterday’s spurt higher
This morning saw the release of New Zealand’s Q3 GDP numbers and produced a mixed performance. On a q/q basis the outcome was a better than expected +0.8 percent and a strong rebound from Q2’s 0.1 percent but on an annualised basis growth was below consensus at +1.9 percent with Q2’s growth revised downwards to […]
Europe Preview
Asian regional markets are lower amid continued uncertainty over the European sovereign-debt situation; the Nikkei falls 0.8%, the S&P/ASX declines 0.7%, the HSI slips 0.6%, the Kospi falls 0.2%, the Sensex declines 0.7%, the Shanghai Composite loses 1.2% and the NZX-50 slips 0.5%. In FX markets the EUR is steady against the USD and JPY […]
OIL ANALYSIS
Nymex crude prices jumped higher yesterday despite risk aversion creeping back into markets following the initial boost from the ECB’s LTRO tender which effectively added E489 billion liquidity to the EUROZONE, but the move is seen more as a temporary stocking filler for the next few months.