Onto Services ISM & Beyond
The US spending sequestration shall go into effect and is expected to hit GDP mostly in Q2 and Q3. Fed Vice Chairwoman Janet Yellen said the FOMC is committed to its 6.5% unemployment threshold and...
View ArticleEuro Escapes for Now, AUDJPY Eyes 100
Stellar Aussie jobs figure showed the biggest monthly rise in 13 years, lifting AUDJPY to 99.97, while AUDUSD stabilized around 1.04. EURUSD's latest slide found support at 1.2911, above the confluence...
View ArticleEuro Bounces off Confluence After Gap Down
EURUSD trades between the confluence of support (200 DMA & 55 WMA downside & 100 DMA upside) ahead of the Cypriote Parliament decision to confirm the bank levies or shift the burden onto bigger...
View ArticleGold Breaks out vs Euro
The main reason the Cyprus “bank coup” rattled FX markets on Sunday night was the surprising haircut on depositors rather than a real concern of contagion. Neither is Cyprus sufficiently in terms of...
View ArticleUK Retail Sales, Budget & FTSE100
UK retail sales excluding fuel items rose 3.3%, posting their highest increase since May 2008. UK retail sales ex fuel m/m rose 1.9% highest since April 2011 Although the UK Treasury reduced its GDP...
View ArticleYen Surges, Euro Awaits Ifo
Yen surges across the board as traders are unwilling to focus all of the safe haven flows on the US dollar after the Fed renewed its asset purchases. EURUSD bounces off its 200-DMA for the 4th straight...
View ArticleWhat Happens in Cyprus, Stays in the Eurozone?
What has changed since Friday? Markets rallied on Friday on news that: i) a deal had been reached and ii) smaller depositors would be spared a levy on their accounts. Markets then crumbled on Sunday...
View ArticleCyprus Banks Set to Re-open
BoJ's Kuroda reiterated the Bank's plan to buy longer-dated JGBs as a way to push inflation towards the 2%, which he stated could take up to 2 years. Cyprus banks are set to open today under capital...
View ArticleFirst 5-Day Gain Since Dec for EURUSD
Is it a case of stabilizing euro or falling USD? The balance of risks in FX is shifting from waning event risk in Eurozone to question markets about US growth (slowing services ISM, jobless claims and...
View ArticleOnto China GDP and more Yen Talk
Chinese data on GDP, industrial production and retail sales is substantial risk as trading begins for the week. Ahead of the data, the moves so far have been small with the yen gaining a few pips and...
View ArticleMetals Attempt Recovery, after Asian Collapse
Gold selloff turns to a free fall to 1385 after reports of a margin calls hitting buyers at the Shanghai Gold Exchange as Chinese investors were known to be keen buyers. China's weaker than expected...
View ArticleFinding Haven in Yen Away from Gold
The biggest daily decline in gold in over 33 years was overshadowed by the tragic news of 2 explosions at the Boston Marathon, where 2 people were killed and 23 injured. The complete absence of any...
View ArticleWicked Moves and Wicked People
The tragedy in Boston overshadowed a fascinating trading day that featured tremendous moves in stocks, yen crosses and the bigger gold drop in 30 years. It was a classic 'risk off' day with the yen...
View ArticleFinal Thoughts on Gold
You may have read all sorts of explanations on gold's collapse on the Internet; fears of margin hikes in China, chatter that Italy (4th largest owner of gold) may start selling reserves; Fed selling...
View ArticleEuro at 7-Week High, Breaks 55-DMA
The euro soared to the highest since late February as risk aversion unwound. We look at some of the reasons for the difficult-to-explain rally. The upcoming session features the Westpac Leading Index...
View ArticleWeidmann, Euro & Commodity Currencies
The irony of all ironies in FX: Bundesbank President Jens Weidmann hinted at lower interest rates if information warrants it, while Japanese officials are verbally supporting the yen (closely...
View ArticleWeidmann Goes Dovish & Latest Premium Insights
The ECB's Weidman threw the door open to a rate cut and sank the euro back to 1.3000. The US dollar was broadly stronger while risk assets wilted. Japanese trade balance is an upcoming highlight. A new...
View ArticleThe yen may be bruised by the Bank of Japan's willingness to unleash a...
Sir, The yen may be bruised by the Bank of Japan's willingness to unleash a monetary shock and awe, but Axel Merk's article “A weak yen is not the solution for Japan” (Insight, April 18), stating the...
View ArticleEuro Hit as Draghi Hints at Negative Rates
The ECB dual rate cuts in the lending and refinancing rate reduced the spread between the lending (emergency) rate and the deposit rates to 1.00%-- lowest since 2008 (Oct, Nov & Dec 2008), a time...
View ArticleUS GDP Soft, but BoJ is the Focus
The US dollar wobbled on a slightly soft GDP but expectations for December Fed hikes continued to rise. The euro was the top performer in a rebound from Wednesday's losses while the Australian dollar...
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