Friday, July 23rd, 2010 at
3:58 pm
The amount of nervous energy in today’s FX market has already translated into some choppy, range-bound trading. The source is obviously the impending release of the EU bank stress test due to be issued at 16:00 GMT. Today, German IFO data came in much stronger than expected spiking the EURUSD 40 pips rallying up to 1.2965. In the back of our minds, we remember that torrent of support…
Thursday, July 22nd, 2010 at
7:44 pm
Risk appetite was pared down during the Asian session as investors chose to focus on Fed Chairman Bernanke’s dovish comments. Bernanke’s semiannual report to Congress basically reiterated the position reported in the FOMC minutes and policy speeches. However, the markets seemed to have latched on the words “we recognize that the economic outlook remains unusually uncertain. We will continue to…
Wednesday, July 21st, 2010 at
1:20 pm
Markets gained a temporary sense of optimism as FX risk-correlated trades recover from yesterday’s sell off and equity markets rally in Asia. Yesterday we saw a sharp reversal – especially in the EURUSD as leveraged players cut their long positions after the pair lost momentum and seemed to run into resistance. EU officials are on the wires talking up the bank stress test due to be released this…
Tuesday, July 20th, 2010 at
5:12 pm
EURUSD was able to shake off yesterday’s Moody downgrade of Ireland and the speculation that a German Bank would fail the stress test to rally to 1.3028. The Hungarian decision to halt talks with the IMF/EU remains risk negative but was not able to weigh on the Euro. While none of the events are on-their-own monumental or unexpected for the Euro, we still believe that the there is a growing…
Monday, July 19th, 2010 at
8:00 pm
With Tokyo taking an extended holiday weekend – it’s hard to identify if there has been a shift in sentiment or if today’s actions are just the result of low liquidity. The media has taken a pessimistic tone following last week’s US data and this week’s upcoming EU bank stress test results. One event worth noting this week will be the BoC’s rate announcement on Tuesday. Markets are broadly…
Friday, July 16th, 2010 at
7:50 pm
The main highlight of today’s session will be the latest reading of US CPI for Jun, where markets are anticipating the headline rate to decelerate -0.1% MoM to 1.2% YoY. Obviously, inflation readings in the US are unlikely to be viewed with any anticipation that a higher reading will prompt a hike just yet, but the release does take on a greater significance in the light of recent Fed rhetoric….
