Forex News

EUR/USD correction continues and 1.4350/4440 still seen as the primary target, GBP continues to weaken and the bounce in EURGBP, up from its earlier broken trend line looks promising,

FTD cited unnamed euro-area officials saying that ECB president Trichet warned euro-are finance ministers on Monday that the ECB would no longer accept Greek government debt as collateral should there be a decision to lengthening Greece’s debt maturities.

Credit Suisse’s fair value (CSFV) model produces FX valuations driven by macro-economic variables.  The key conclusions of our 2011 update are: US dollar fair value estimates have been broadly revised stronger versus all G10 currencies compared to the 2010 estimates.

April IP growth was reported at 4.5%, further extending the deceleration of the recent months (from 5.3% in March and 5.8% in April).

Overnight equity markets Nikkei          +0.99%          9’662.08 S&P500          -0.04%          1’328.98 Dow             -0.55%          12’479.58 Nasdaq          +0.03%          2’783.21

Central banks in the region are still fighting the inflation battle and will likely progress with a combination of interest rate hikes and currency strength.

The Moody’s downgrade is not as important as it sounds, nor is it unexpected. In brief: Moody’s had rated the banks one notch higher than S&P & Fitch so the downgrade has brought them all in line with each other. 

EUR Wobbles but it won’t fall down…….yet Yesterday saw EURUSD come under the most intense pressure from all angles; negative official statements, stock markets and metals hit hard and the USD generally being in demand for most of the day.

The minutes of the May MPC meeting revealed no new lines of discussion in the monetary policy debate amid volatile activity and inflation data.

Soft restructure doesn’t guarantee soft landing EUR USD (1.4270) Press reports circulating yesterday morning said that Eurogroup Chairman Jean-Claude Juncker was considering the case for a ‘soft restructuring’ of Greece’s debt load.

Commodities still the driver, USD lower