Forex News
Risk traders met today
A high degree of uncertainty remains- that’s a given. EURO to trade sideways with a slight bearish tone until further news. The group believes potential redemption demand has led to risk being widely reduced and cash being held.
UK manufacturing PMI better than expected in September
The manufacturing PMI was stronger than expected in September, increasing to 51.1 from an upwardly revised 49.4 previously (consensus/BarCap: 48.5). While at this level the index is consistent with only modest growth, the more significant fact about the September figure is that it comes after two months of falling activity and suggests that the state […]
Greece: Government to submit fiscal plan today following ongoing discussions with Troika
Reports by local and international media (Ekathimerini, FT, Bloomberg) indicate that the Greek government has agreed on fiscal measures, including the 2012 budget, which will be submitted to a parliamentary budget committee today. While the government plans have not yet been made public, according to the press the plans include details on revised deficit targets, […]
HSBC Macrobullets – Monday 03 October 2011
TOP New Greek austerity plan short of target: The draft budget calls for a deficit of 8.5% of Greece’s gross domestic product in 2011, falling short of a target of 7.6%, Reuters reported. The deficit will be reduced to 6.8% of GDP in 2012, but still short of the mark of 6.5% of GDP, according […]
Overnight Asia Wrap, Orderbook & Flow, $Asia and levels..
1) Overnight Asia Wrap Risk off as all of the news over the weekend was negative. “Greece to Miss Deficit Targets Despite Austerity”, “Banking Crisis Set to Trigger New Credit Crunch” just to name a few. News out of Belgium that Dexia became the latest bank to seek bail out funds.
CEE Weekly: Battling increasing pressure
Trade of the week: hard currency vs. local currency bond switch opportunities As positioning is stronger in local currency than hard currency EM bond funds (also evidenced in last week bond fund flow data) while USD appreciation seems to be the main driver of recent EM underperformance, we believe it makes sense to investigate switch […]
UniCredit EEMEA Daily
News CEE: Neutral – Economic sentiment indicator provides a mixed signal but slowdown is becoming more evident HU: Negative – 12M t-bill auction is seriously undersubscribed, bid/cover ratio at 0.75 is the worst ratio ever (p2) PD: Negative – 2Q current account deficit EUR1bn wider than consensus due to revision in trade and service deficits […]
Greece: Troika reported to conclude assessment by Monday; government to hold extraordinary meeting
Local media report that the Troika resumed monitoring Greek public finances on Wednesday and is supposed to release its assessment by Monday, while the government will have to approve labour market reforms, the 2012 budget draft and the new medium-term fiscal plan.
EM bond fund flows: biggest weekly outflow on record
Data published this morning shows that EM bond funds saw their biggest weekly outflow on record (in absolute terms) at USD3.2bn. As we have highlighted in our fund flow report last week the serious underperformance of JPM-GBI vs. the UST will likely lead to outflows from EM bond funds. Data published this morning confirmed our […]
Risk aversion has ruled in Q3
Today will mostly be about wrapping up Q3. Random-seeming month-end moves are guaranteed! If I just look at Q3 market moves, the picture is that we’re not having a ‘euro crisis ‘ (it’s actually one of the stronger global currencies in Q3). Rather, the pervading theme has been broad risk aversion and fear of economic […]
Japan increases its currency ‘war chest’
Japanese Finance Minister Jun Azumi said today that the government will lift the limit of the Financing Bill (FB) issuance for JPY selling intervention to JPY165trn yen (USD2.2trn) from the current JPY150trn in the third supplementary budget, which is likely to be formed in October.
CNY – Fix lower; CNH higher; NDF’s higher; Vols exploding
So another much lower fix at 6.3549 .. but spot USD/CNY onshore immediately trades higher to top end of the band, at 6.3867 – and sits there all mng The lower fixes, higher spot been going on all week but today most extreme case: some of it still related to arb players: those who can […]