Forex News

Barrage of Eurozone news leaves EUR under pressure CHF strength likely to be limited from here as SNB continues to express concern over FX strength Higher than expected Norwegian GDP to keep NOK well bid

The current USD rally is happening at a time when the US economy is weakening. Historically a weak US economy would have been seen as negative for the USD.

The Turkish lira is under selling pressures as the global market sentiment soured. USD-TRY finally has crossed the 1.60 barrier and vs. the basket the TRY weakened beyond 1.92.

EUR/PLN: Has found interim support at 3.8972/3.8766 but remains sidelined for now. EUR/HUF: Bounces off the 263.06/259.79 support area but should be capped around the 270/272 area.

The Eurozone PMIs showed clear signs of slowdown in May with the composite survey falling to a seven-month low of 55.4 from 57.8. The fall was broadly-based, but led by manufacturing, and the slowdown more marked outside France and Germany. The PMI surveys are still consistent with above-trend growth in Q2 and do not alter […]

EUR pressured by ratings agencies, Spanish elections USDJPY to head towards 80.00 We favour selling GBPNOK on the back of hawkish Norges Bank and expected strong GDP this week

EUR USD (1.4080) The euro began to flag by mid-morning in Friday’s European session as traders traded dark scenarios of the weekend elections in Spain, the most salient of which was the motivation of a new regional government to expose any debt hidden by the incumbent party.

The cost of agreement between Hungarian banks and the government on FX mortgages looks workable. The currently proposed 180 CHF/HUF rate translates into a cost of HUF30-40bn per year, equivalent to 0.15-0.2% of GDP) and is much more controlled than full scale conversion.

* The Baltics are firmly in ‘normalisation’ mode.  Following unsustainable gains in GDP over 2006-07, economic activity collapsed in 2008-09.  Last year saw stabilization on this front which has now translated into concrete signs of recovery.

During the first four months of 2011 eurozone tension eased, although trouble at the periphery never went away. However, with yield spreads starting to blow out across the region (the 10 year German-Spanish yield spread posted a new wide for the year late last week) it would appear tension is again building.

Recurring EURUSD Pattern? Friday 13th May – European Open saw buying of EURUSD up to highs of 1.4337 Friday 20th May – European Open saw buying of EURUSD up to highs of 1.4427 Both days saw their peak between 8.00-8.15am GMT