Forex News
FX DAILY STRATEGIST: Europe – 03 August 2011
Price action characterised by traditional risk-off on global growth fears. Top Japanese officials meet but rhetoric does not signal any urgency for JPY intervention. US and UK services PMI important for first signs of Q3 performance.
European FX Daily – Focus on services PMIs and ADP
– Asian equities down 1-2% weakening Asian FX, but G10 less so – China’s July services PMI rose in line with its seasonal factor – UK, Europe and US services PMIs expected to be weak – ADP expected at 100k
FX DAILY STRATEGIST: Asia – 03 Aug 2011
US ends budget stalemate but little euphoria results as concerns remain fixed on global growth EUR likely to remain under pressure if GIIPS spreads fail to re-compress US and UK services PMI important for first signs of Q3 performance
Tuesday: Overnight Wrap, Jpn comments, Orderbook & USD/Asia
1) Overnight Wrap A generally quiet Asian session despite a nervous and twitchy market following the comments out of Japan overnight that bring intervention risks closer. Early in our session the US debt limit bill was passed comfortably by the House of Representatives with 269 v 161 votes, and will now go on to the […]
What matters today (Asia edition)
Developed macro 1. The US House of Representatives passes the debt ceiling increasing plan and more attention will revert to the rate decision and data front. 2. US June Income and Outlays to show small gains. 3. US Vehicle sales expected to increase in July.
Behavioral Finance: Daily Forex Outlook: Obama reaches a close budget compromise
EUR/USD (1.4390) The dollar rallied briefly when the US President announced that an agreement had been reached on a provisional budget deal. Democrats got the debt ceiling raised by $2,400bn in exchange for $2,800bn in spending cuts, $1,000bn of which would be immediate.
Overnight Wrap, Flow & USD/Asia Run
All about the US and the deal that has apparently been reached. USDJPY opened higher and jumped from 77.00 to 77.65 in very early trading. We slipped back to 77.30 before it was announced that Obama was having a press release.
KRW, SEK, NOK are the ‘winners’ from the US debt deal
The ability of the current batch of leaders in the US and Europe to wait until the last minute before delivering crisis-averting policies is amazing. The European experience is that this trait results in increased market skepticism but on the face of it, the US debt deal isn’t bad.
Update on US Debt Ceiling Discussions
Democrats, Republicans and the White House seem to have made progress, which should ease concerns about default and raise the long term value of the USD. The (yet not fully specified) agreement seems to have the following features: 1) The debt ceiling will be extended by USD2.4/2.5trn, in 2 installments. Now, it will be extended […]
What matters today (Asia edition)
Developed macro 1. ‘Risk-off’ mode dominated in overnight trading session 2. EC business confidence surveys widely expected to deteriorate in July 3. German labour market will likely reveal further improvement
FX DAILY STRATEGIST: Asia -27 July 2011
FX finally takes fright at US ratings risk Solid AAA G10 credits may have further to run Upside AU CPI surprise could see new AUDUSD highs
McCrann — AUSSIES SAVE WHILE AMERICANS KEEP SPENDING
RESERVE Bank governor Glenn Stevens delivered some hugely important messages yesterday. Ahead of this morning’s inflation figures, on which next week’s RBA interest rate decision pivots.