Forex News
Australian Dollar Down
The Australian dollar dipped slightly on Thursday in holiday-thinned trade, though remained just above parity with the USD. Helping risk-sensitive assets generally was a massive lifeline to Europe’s struggling banking industry, with hundreds of euro-zone lenders taking out a total of EUR489.19 billion ($639.96 billion) in low-interest loans from the European Central Bank on Wednesday.
AUD/USD ANALYSIS
Fell back yesterday after Tuesday’s strong rally and the initial euphoria following the ECB LTRO auctions, which saw a European high of $1.0219. Rising peripheral bond yields in Italy and Spain allied to strong EUR/USD macro supply sent risk clattering off which continued into the NY session and pushed AUD/USD down to $1.0051.
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.
NZD/USD ANALYSIS
The New Zealand dollar was trading lower late Thursday after New Zealand’s third quarter gross domestic product numbers failed to alleviate fears over the negative impact of the euro-zone sovereign debt crisis.
AUD/USD ANALYSIS
A sharp rejection of 1.0200 in the AUD/USD and 0.78 in the NZD/USD leave the short-term charts looking a lot less constructive. Both pairs gained strongly overnight after a larger-than-expected uptake of EUR489 billion in the ECB’s 3-year lending facility was initially greeted with enthusiasm, but markets eventually concluded that the liquidity auction was nothing […]
OIL ANALYSIS
Crude futures surged Wednesday after a government report showed a giant decline in U.S. oil stockpiles. The U.S. Energy Information Administration said U.S. crude inventories fell by 10.6 million barrels last week, the largest weekly drop in more than a decade. While crude stocks often fall at the end of the year, the size of […]
Stocks are riding the LTRO rollercoaster
Europe cheered and then shrugged The momentum from yesterday’s session carried into Asia overnight and Europe was building up steam (the DAX Index was up 0.9 per cent) ahead of the much anticipated 10:15 GMT announcement from the European Central Bank about allotments on its new three-year Long-Term Refinancing Operation, a programme to ease funding […]
GBP ANALYSIS
Opened early Europe at $1.5668 stg0.8367 GBP closed in NY at $1.5663, off extended session highs of $1.5700. Rate marked overnight lows into early Asian dealing at $1.5660 before picking up fresh demand which allowed rate to track EUR/USD early rise to $1.5684.
JPY ANALYSIS
Opened in early Europe at Y77.80 and Y102.01 – Another quiet session for USD/JPY traders in Asia after the pair recovered from NY lows of Y77.71. The USD opened this morning at Y77.88 and failed to break above Y77.90 before heading lower again.
EUR/USD ANALYSIS
Edging higher again as traders adjust positions ahead of the key morning focus ECB LTRO, the take up results due at 10:15 GMT.
The inevitable short squeeze we had to have
The humble short squeeze that started out quietly yesterday continued in earnest overnight as consolidation remains the name of the game and the self fulfilling prophecy of a Christmas rally remains firm on traders’ minds. I don’t believe in either a change of circumstance or this rally that everyone is looking for. It is of […]
UniCredit EEMEA Daily
News HU: Mixed – NBH hikes policy rate by 50bp to 7.00%, statement is a tad less hawkish than last time but multi week outlook strongly depends on the IMF/EU talks (p1) LT: Positive – 3Q C/A comes in at LTL 0.6bn, FDI records another strong positive quarterly reading (p2)