Forex News
BOND ANALYSIS
German government bonds are trading little changed Wednesday ahead of the ECB’s inaugural 3-year LTRO. Bunds traded sharply lower yesterday following better than expected German Ifo business survey and strong Spanish 3-month and 6-month T-bill auctions with further tightening in EMU peripheral spreads as investors continued to purchase periphery bonds ahead of the ECB’s 3-year […]
GBP/USD ANALYSIS
Closed in NY at $1.5663, off session extended rally 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 ERU/USD early rise to $1.5684.
GOLD ANALYSIS
Spot gold moved steadily higher on Tuesday as traders covered shorts and crude oil prices rocketed higher on the back of strong equity gains. Bargain hunters were also conspicuous after the heavy falls last week amid talk of increased physical demand for the metal over the Xmas period.
EUR/USD ANALYSIS
Closed in NY at $1.3080, off rally extension highs of $1.3132, with rate dipping back to $1.3075 into Asia before picking up fresh demand interest. Real money and leveraged names were again noted buyers, as they had been Tuesday, with triggered stops on the move back above $1.3100 providing the added momentum to take rate […]
EUR extends its recovery as China allocates funds to local stocks
The risk rebound that started overnight extended in the early part of Asian trading as markets reacted to news that China’s National Social Security Fund (NSSF) plans to invest Yuan 10 bln (USD1.58 bln) in local stocks. A similar move had also been announced by Taiwan and this led to a broader up-move in Asian […]
NZ 3Q Current account deficit widens
New Zealand’s current account deficit widened sharply from the previous quarter in the three months to Sept. 30, and the likelihood that offshore pressures will weigh further on the country’s all-important export sector are increasing.
“..Central bank’s printing press solves no problems..”
The euro-zone’s debt crisis can’t be solved by creating ever-larger rescue funds or printing money to finance government debt, a board member of Germany’s central bank warned Tuesday: “financing government debt through the central bank’s printing press solves no problems but rather creates new ones,” said Andreas Dombret of the Bundesbank. Such a move would […]
Long process of “new fiscal pact”
The process of launching the “fiscal pact” among the 17 euro-zone countries and the other non-euro E.U. member states to strengthen economic governance will take longer than has been foreseen, according to one of the three members of the European Parliament who have been appointed to sit in the negotiations.
Spain Deficit Falls in 2011
Spain’s central government said Tuesday its budget deficit narrowed by just 4.9% on the year in the first 11 months of 2011, a sign that the country may struggle to reach its annual deficit target. The data was released soon after the country’s parliament gave its backing to Mariano Rajoy as prime minister with an […]
Euro relief ahead of critical ECB LTRO tomorrow
We’re seeing the EURUSD move higher out of the microscopic range of previous days, but the resistance ceiling is fairly low and we have a key test ahead with tomorrow’s ECB 3-year LTRO results.
FX Daily Strategist
EU finance ministers conference call communique sends equities and risk lower While much of the Asian and NY trading sessions were relatively quiet, the turnaround came following headlines out of the EU finance ministers’ conference call. The EU finance ministers agreed to lend EUR150bn to the IMF. Four non-euro users (the Czech Republic, Denmark, Poland […]
GBP/USD ANALYSIS
Opened early Europe at $1.5522 stg0.8382 – GBP/USD closed in NY at $1.5499, after correcting back from NY highs of $1.5545 to $1.5492.