Forex News
FX DAILY STRATEGIST: Europe – 23 June 2011
FOMC disappoints those looking for stronger balance sheet commitment. USDJPY looking on slightly firmer ground above Y79.50 GBP loses significant ground, but we look for more.
European FX Daily – Dollar rallies on Fed, drop in China flash PMI
– European currencies lead slight weakness vs USD – Bernanke acknowledges soft patch, but no new stimulus yet – Flash China PMI points to a sharper slowdown in Chinese growth – Flow data continue to reinforce the USD’s vulnerability
Global Macro Daily (London Open)
Estimated official intervention in May was larger than expected, given the USD’s firmness during the month. Our base case is that EUR/USD will edge higher as the European situation stabilizes, but there are risks, given the fragile market environment and market positioning imbalances that are fostered, in part, by intervention (see Focus below).
Economic Briefing: FOMC Expressing Guarded Optimism
The FOMC’s view appears to be that the recent slowdown in growth will subside in the coming quarters and the recovery will pick up, although the Fed Chairman acknowledged in his press conference that the Greek debt situation and other headwinds at work continue to represent challenges ahead.
FX DAILY STRATEGY Asia – 23 June 2011
FOMC expresses confidence in growth pick-up; disappoints those looking for stronger balance sheet commitment USDJPY looking on slightly firmer ground above Y79.50 GBP loses significant ground, but we stay short
US Economics Digest – FOMC Decision: Beyond the Special Factors
As expected, the Federal Open Market Committee voted unanimously for unchanged balance sheet and interest rate policy. The FOMC announced that “QE2” will reach its definitive conclusion at the end of this month, as originally planned; Fed Chairman Bernanke in his press briefing actively downplayed any speculation about QE3.
GS US Daily: FOMC Preview: Balancing Act
Chairman Bernanke’s second post-meeting press conference could prove more challenging than the first, given unfriendly data and the end of QE2. We do not expect major shifts in the policy message, but several tweaks seem likely in light of recent news.
Americas FX Daily – Market “sells the fact” after confidence vote
What happened overnight – Greek government survives confidence vote with 155 votes – June MPC minutes not possibility of renewed QE – Sweden manufacturing confidence better than expected
GBP LOWER POST UK MPC MINUTES
And Futures have moved 7 tics on it Vote : 7-2 as expected….for BoE. Some members saw the need for more bond purchases (QE). It is also worth noting that Weale and Dale suggested the growth outlook was weak.
Daily Forex Outlook : Greek government survived the first test
EUR USD (1.4365) George Papandreous’ socialist government won a confidence vote in parliament last night, opening a chance for the Greek prime minister to oversee another vote next week on his new austerity measures.
FX FLOWS SO FAR
So far we have noted macro buyers of upsides in EUR$ this am.. Cash flow has been light. Lvls to watch being 1.4435 1.4451 1.4498 recent prev tops.
UniCredit EEMEA Daily
News LN: Positive – May IP grows 12.8% yoy (p2) LV: Neutral – May PPI decelerates to 7.8% yoy (p2) RU: Mixed – Sharper than expected decline in real disposable income at -7.0% yoy; May Production Capacity Investment increasing 7.4% yoy (p2)