Forex News

Payrolls disappoints but troika delights. EURUSD, EURGBP to extend gains unless ECB blinks. If RBA unconcerned about China, AUD to outperform.

Some light exporter USD selling…(maybe 300 bux gone thru total this am We’ve seen 50) and also seeing some med term USD selling from overlay base (reinstating recently trimmed USD shorts) However, seems to be a consensus building amongst trading community of waiting for some RUB weakness first before initiating longs. HSBC Global Research

Payrolls disappoints but troika delights EURUSD, EURGBP to extend gains unless ECB blinks If RBA unconcerned about China, AUD to outperform.

EUR USD (1.4635) The euro finished trading on Friday near its week’s high, just as it had done the week previous. Indeed, the certainty that market participants attach to near-term Greek funding seems to have been the leading indicator even before that, when the euro often settled on Fridays near the week’s lows.

Earlier in the year, it seemed as though inflation was the big problem. In response, the European Central Bank raised interest rates. The hawks on the Bank of England’s Monetary Policy Committee wanted to follow suit.

Overnight equity markets Nikkei          -1.18%          9’380.35 S&P500          -0.97%          1’300.16 Dow             -0.79%          12’151.26 Nasdaq          -1.46%          2’732.78

Foreign Exchange Our EUR/USD outlook has been neutralised. The current advance should fizzle out ahead of or around the 1.50 mark.

The Power of Positioning : The finger may be in the Greek dam , but it was the sheer weight of shorts that caused the Euro to close very strongly last Friday . With the central banks virtually absent from the market place , the Euro powered north and technically it remains bid  with a […]

G10 Currencies EUR: The rumour mill had been busy recently. In particular rumours were abounding that the IMF would end the Greece aid. Even serious economic newspapers had announced this as a fact. They now look like fools.

The European sovereign crisis has years to run. But the immediate danger is past. We learned two things from Friday’s US data releases: That the month after a surprisingly strong payroll report, we should brace ourselves for weakness, and services paint a different picture of the global economy than manufacturing. 

PBoC holding back? Local Rates: Is the PBoC losing its appetite for rate hikes? We like CNY steepeners. FX: USD-Asia has already sold off. We like relative plays such as long INR-KRW. Economics: Bank Indonesia and Bank of Korea announce rate decisions on Thursday and Friday respectively. We look for no change by BI and […]