Analitics
Dollar dips in late day risk rally
The U.S. dollar erased earlier gains, tumbling against all of the G10 except the Japanese yen, and the euro firmed on reports that EU officials may be coordinating a bank rescue. Though the news gave a boost to risk sentiment, we remain skeptical that this will materialize into a longer term solution for the sovereign debt crisis as coordination by EU officials has proved very difficult in the past.
Source: Forex.com
04.10.2011
More of the same as we enter Q4
The markets have sold risk as we start a new quarter. The problem is that we still don’t know what will happen with Greece – today’s Ecofin meeting in Europe should be the major driver of the markets during the NYC session, along with the ISM report released at 1000ET/ 1500 BST.
Source: Forex.com
03.10.2011
China growth fears add to sovereign concerns
There is plenty to digest as we end Q3. Not only do four Spanish savings banks need to be re-capitalised with state aid to the tune of EUR 7.5bn, but added to that the Troika have had to delay their meeting on Greece because the Greek Finance Ministry has been taken over by protestors, Athens is holding an emergency cabinet meeting on Sunday and the cost to insure Chinese government debt against default have risen to its highest level since March 2009.
Source: Forex.com
30.09.2011
Germany votes yes but the euro’s reaction is muted
Stocks jumped in the mid-morning session, as investors digested news that the German parliament had easily passed a vote to allow the July changes to the EFSF rescue fund, although the euro fell back from its highs of the session. Stock markets are brushing off economic data that continues to come in on the weak side.
Source: Forex.com
29.09.2011
Markets shift back into havens as uncertainty remains high
The U.S. dollar reversed earlier losses and firmed against all of the G10 except against the JPY as traders shifted back into safe havens. The relief rally was unable to extend gains in risky assets as equities declined and the high beta currencies NZD, AUD, and CAD were the worst performers against the greenback today.
Source: Forex.com
28.09.2011
EFSF runs into roadblocks
This of course relates to whether or not the European authorities will expand the EFSF’s size to EUR2-3 trillion. The only sustainable solution to this crisis is: 1, funds available in case Spain and Italy (maybe France) get in to trouble, 2, a recapitalisation of Europe’s banks , which may cost EUR300bn according to IMF estimates and 3, an ability to protect the ECB- who holds in the region of EUR60bn of Greek debt - in the event that Athens defaults.
Source: Forex.com
27.09.2011
New Week Begins with Risk Off
While the week began with the EUR/USD well bid, the strength in the single European currency was fleeting, as the pair eventually made its way under 1.3400. After a close on Friday near 1.3500, the pair was boosted about 20 pips on the open due to some reassuring comments from German Chancellor Merkel earlier in the day where she stated that Germany did not want Greece to exit the Euro Zone.
Source: Forex.com
26.09.2011
G-20’s soothing words start to fade
The European equity markets have reversed course as we head into lunchtime in Europe and are now lower on the day. After yesterday’s rout, it looked like investors were staying on the side-lines and booking some profit before the weekend.
Source: Forex.com
23.09.2011
Out with the Fed and back to Europe
Stocks in Europe have nose-dived today, with most of the major European indices down about 4%. There is a mixture of drivers for this: firstly fears for the US economy escalated last night when the Fed announced Operation Twist to try and boost activity and bring down the unemployment rate. Secondly, China’s PMI data was weak for another month in September, which suggests the Asian powerhouse is still coupled to the West.
Source: Forex.com
22.09.2011
Twists and turns for the Fed
The FOMC meeting later today will dominate the markets today and could even distract attention away from Greece and the Eurozone. Below are the main market themes so far today:
Source: Forex.com
21.09.2011
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