Forex News » News

Stalled Greece Negotiations Will Weigh On Euro Going Forward

admin — Fri, 03 Feb 2012 12:28:16 +0000

Talks between Greece and its private sector creditors have still not come to a conclusion and there has been a complete absence of updates on progress this week – raising the uncomfortable possibility that negotiations drag on into another week. The immediate consequences of this lack of resolution are clear; EURUSD has repeatedly failed to garner much buying interest up towards 1.3200 as…

Global PMIs Spark Optimisms Over Growth

admin — Thu, 02 Feb 2012 18:27:32 +0000

After a slight pullback in earlier European trades, risk appetite cautiously in Asian session crept back into the markets. EURUSD was range bound between 1.3160 and 1.3200 while AUDUSD continued its strong rally running to 1.0757. Asia’s regional indices were green across the board with the Hang Seng up 1.94% and Shanghais 1.96%. The catalyst was the generally positive manufacturing PMI prints…

Global PMIs Spark Optimisms Over Growth

admin — Thu, 02 Feb 2012 18:27:32 +0000

Traders Watching EURCHF for SNBs Response

admin — Wed, 01 Feb 2012 15:13:34 +0000

The market remains positive on the recent developments in Europe, supporting risk across the board. EURUSD continues to feel heavy falling to 1.3026 from yesterday’s high of 1.3212. In China manufacturing PMI had a strong print coming in at 50.5 vs. 49.6 exp. The fact that the EU summit ended with no real development failed to dampen the growing optimism (only the 16th summit in the two years…

Worries of Europes Immediate Collapse Dissipates

admin — Tue, 31 Jan 2012 12:01:39 +0000

Risk appetite was firm in Asian session as the FT produced an article suggesting that the next LTRO could find demand of up to €1trn. If this is correct it would all but eliminate concerns that European banks could face a near term liquidity crisis. Optimism continues to grow despite the fact that Eurozone summit yesterday brought no real progress on the Greek debt crisis. There is a growing…

Greece Rejects Greater EU Oversight

admin — Mon, 30 Jan 2012 17:56:16 +0000

With Greek negotiations ongoing but yet to reach a conclusion, media chatter over the weekend was dominated by reports that Germany wishes to have greater oversight of Greece’s budget – a proposal that Greece has readily dismissed. The suggestion was endorsed by German cabinet minister Philipp Roesler, and reflects the widespread scepticism both across the market and amongst policy makers that…

Swiss KoF Goes Negative

admin — Fri, 27 Jan 2012 17:50:07 +0000

USD selling continued for the majority of yesterday’s session. EM & commodity currencies have been a primary recipient to inflows. USDTRY sank to 1.7862, while USDRUB gapped lower at the open and proceed to fall to 30.1811. The impetus seems to be the residual effect of the FOMC meeting where Mr. Bernanke announced it would be nearly 3 years before hikes (he also indicated that selling of…

Fed Initiate Explicit Inflation Target

admin — Thu, 26 Jan 2012 14:44:24 +0000

USD was sold in Asian session as the FOMC sounded very dovish in their pledge to hold rates at near zero “at least through late 2014”. EURUSD climbed to 1.3134 while AUDUSD ran to 1.0642, on broad USD selling. In addition to the commitment to low rates the Fed also committed to explicit inflation targeting for the first time. Core personal consumption expenditure will be now steered towards 2.0%…

Waiting on a Potentially Less Dovish Fed

admin — Wed, 25 Jan 2012 11:40:27 +0000

The big mover in Asian session was the AUD, as a weaker headline CPI reading of 0.0% q/q vs. 0.2% exp pushed AUDUSD briefly to 1.0441. This read would put the year-on-year number slightly above mid-point of RBA’s 2-3% inflation band and forces traders to slightly rethink rate cut expectations. The OIS market is pricing in cuts of roughly 16bp for the February meeting. Given the contraction in…

SNBs Danthine To Speak

admin — Tue, 24 Jan 2012 17:37:57 +0000

In Asia session, liquidity was thin and flow were light as locals celebrated the second day of the Chinese New Year. BoJ unanimously keeps rate unchanged at 0-0.1% and asset-purchase fund left at JPY20 trn as was universally expected. In addition, monthly JGB purchases were held at JPY1.8 trn. EURUSD took a hit, falling to 1.2988 on a WSJ article and comment from Juncker ran on the wire. The WSJ…