Updated May 23, 2012 6:40:00 AM
We have heard conflicting information about Greece over the last 24 hours: first we heard that Greece was making plans to leave the Eurozone from former Prime Minister Papademos, which was denied. Then this morning reports from a German newspaper suggested that the ECB had set up a task force (tucked away in a bunker) working on the potential fallout from a Greek exit. It’s likely that we will get these conflicting headlines between now [...] Continue Reading ...
Updated May 23, 2012 1:47:50 AM
Japan was in focus today, with the BOJ ending its two day meeting, yesterday’s downgrade by Fitch and some weak trade data. Overall, the data and announcements proved to be yen positive, pushing USDJPY back below 80.00 early in the session. As expected, the BOJ board unanimously voted to leave policy unchanged at is two day meeting. However, there were some whispers in the market of a possible reduction in the interest rate on [...] Continue Reading ...
Updated May 22, 2012 9:11:47 PM
Risk sentiment took a savage blow overnight from renewed concerns about a Greek exit from the euro. Also, German officials dashed hopes for any massive positive surprises from tonight’s informal EU summit. Thus, EURUSD sunk through 1.2700 and AUDUSD pushed through a support line around 0.9800. However, focus during this session will be squarely on Japan. Firstly, Fitch announced that it was downgrading Japans sovereign rating despite the better than expected recent growth figures. [...] Continue Reading ...
Updated May 22, 2012 7:05:00 PM
MAJORS: EMERGING FX: COMMODITIES: EQUITIES & YIELDS: Follow us on Twitter for more TECH TALK throughout the day! [...] Continue Reading ...
Updated May 22, 2012 4:15:00 PM
The dollar was broadly higher amid continued talk about a possible Greek exit and after better than expected U.S. housing data. Former Prime Minister Papdemos was on the wires saying that preparations for Greece to exit the euro are being considered which weighed on the euro despite an easing of sovereign yield spreads. The euro tumbled to current levels of around 1.2670 but sees a decade long trendline support just below (see here) and [...] Continue Reading ...
Updated May 22, 2012 12:00:00 PM
Trading in the London Session was choppy with the market unwilling to take any clear direction as we lead up to tomorrow’s informal EU summit. The market toyed with the idea of Eurobonds (they like that idea and risk assets may rally tomorrow on any signs they are on the horizon.) Then they focused on the prospect of a showdown between Germany and France, Europe’s de facto leaders, which caused a mild sell off. Right [...] Continue Reading ...
Updated May 22, 2012 9:40:00 AM
• USD stronger today against most of the majors amid higher global equities and higher U.S. treasury yields. A ratings downgrade in Japan, dampened EU Summit expectations and low growth projections in Europe, and slowing inflation in the UK are benefitting the USD. The dollar index rebounded from the 81.00 figure but remains below the double top around the 81.75 level and the dollar is currently strongest against the JPY as UST yields advance. On [...] Continue Reading ...
Updated May 22, 2012 1:39:45 AM
Nervousness underpinned price action today. Despite voices from throughout Europe attempting to reassure the market that Greece will remain in the euro, stock markets in Asia didn’t significantly build on their opening gains and the euro slowly drifted lower throughout the session. Why is the market behaving like this? In one word – caution. Investors are acutely aware that the talk from Europe may just be that, and when push comes to shove nothing [...] Continue Reading ...
Updated May 21, 2012 8:30:00 PM
Whether you’re an experienced trader or brand new to Forex, you should be aware of the strong positive correlation between U.S. Equities & AUD/USD (although it has been somewhat weaker than normal over the past few weeks). This historical intermarket relationship is predominantly due to the fact that the Aussie is considered a ‘high beta’ currency and consequently will trade roughly in-line with other ‘risk markets’ (equities being a major proxy for this) – Other [...] Continue Reading ...
Updated May 21, 2012 4:10:00 PM
Markets consolidated amid a lack of fresh data and the US dollar traded mostly softer as sentiment improved. The dollar index was rejected from a horizontal resistance level and appears to have formed a double top within a bullish channel suggesting that a pullback may be forthcoming. The broader trend remains higher and we would therefore prefer to be buyers on dips (see chart here). Equities gained and 10-year Treasury yields edged higher. The [...] Continue Reading ...
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