FX Fundamentals View

Australian Dollar: The Aussie dollar staged a remarkable recovery over the last 24 hours rallying from a post inflation report low of 0.8904 to trade at a high of 0.9040 overnight. After entering early London trade around 0.8965, Greenback selling provided the stimulus for the move as investors pushed EUR/USD higher following an upbeat consumer sentiment survey out of Europe. This morning sees the AUD/USD open at 0.9005 whilst with AUD/NZD demand also emerging following yesterdays RBNZ

EURO The euro appreciated vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3105 level and was supported around the $1.2975 level. The common currency traded above the $1.3100 figure today for the first time since 4 May 2010 as improving risk appetite continued to support higher-yielding currencies.  Data released in the U.S. today saw weekly initial jobless claims decline to 457,000 from a revised 468,000 print last week while continuing jobless claims

Forex traders, join the daily All Things Forex broadcast- a live one hour program covering Forex and major economic events, trend developments, research, analysis, ideas, education, live traders forum, interviews with some of the most respected names in the trading world, and much more.. In the broadcast today: Is the JPY Bound to Revisit 14-year Highs vs. USD? Ahead of a sequence of important economic data from Japan, we focus on the JPY and explore the potential for the Yen to re-test its

Yields are relatively static with dealers reluctant to sell bonds towards the top of the recent yield range for lack of evidence that central banks will normalize monetary policy anytime soon. Nevertheless they appear reluctant to dive deeper into the traditional safe haven offered by fixed income on signs of revitalized growth around the world. Providing a counterweight to a midweek report from the Fed indicating modest growth at best is a series of rising European confidence measures today

High yielding assets and risky investments were targeted throughout today’s trading session on a global scale affected by the release of better than expected earnings by major companies in Europe and US that helped stocks to trade higher on Thursday. Confidence in the euro zone rose to the highest levels in two-years, while easing conditions in the US pushed the Euro to gain against the dollar. The Fed beige book yesterday noted that conditions in the US are slowing unlike the

Markets in a Flash Asian equity markets had a mixed session overnight. The Hang Seng finished flat +0.01% up. The Nikkei 225 was down -0.59%. European equity markets are making gains today and are progressively getting higher. This is on the back of strong European economic data. Commodities are pushing higher this morning. Oil and Gold are both trading higher in today’s session while copper is up over +1% The EUR is looking strong today pushing higher against other currencies. This is due to

The 16-nation currency strengthened against majors after economic confidence rose to the highest level in two years and German unemployment slid for the 13th month which added to signs of recovery in region, thereby supporting the single currency. Also, the better-than-estimated results by large European companies such as Siemens, BASF, Volkswagen and Lufthansa as well as others gave another impetus to the euro. The euro hit 11-week high against the dollar as the breach of 1.3050 levels

Generally strong European corporate earnings buoyed European equities Market talk of large month end selling in the USD has pressured the currency across the board Moody’s said the US government needs a credible plan to tackle its deficit to keep its AAA rating Overnight News ASIA JGBs gained overnight as investors hunted for bargains following the previous day’s market dip, emboldened by higher US Treasuries and softer Tokyo stocks. Nikkei fell 0.6% after hitting a two-week closing high the

U.S. Unemployment Claims the early indicator of Non-Farm Payrolls is the highlight of today’s news. Let’s see what awaits us today. In the US, Unemployment Claims rose last week to 464K worse than expected a smaller rise to 457K is expected now. As an early indicator of Non-Farm Payrolls it has a major effect on the U.S. currency. In the US, Unemployment Claims rose last week to 464K worse than expected a smaller rise to 457K is expected now. As an early indicator of Non-Farm Payrolls it has a

Not even the dovishness of the Bank of England Governor Mervyn King has been able to dissuade investors and speculators from backing the pound; something that is raising eyebrows in many a strategist’s office, not least mine. Everything the Governor said was warning of more potential downside whether it advising against reading too much into Q2’s better-than-expected GDP growth or emphasising that the future of the inflation curve continues to look uncertain. As soon as Mervyn King sat down

Beige Book released yesterday by the Fed didn’t get a warm reception as it confirmed signs given by a broad range of macroeconomic indicators. While the June’s book signaled an expansions in all regions, the July’s pointed at a stagnation in two and moderation in others. Durable orders also disappointed, contracting by 1% m/m vs expected rise of 0,9%. In annual terms, orders were still up by nearly 16% in June but it stems mostly from the huge base effects. In real terms orders are still at

Previous session overview The dollar declined against the yen in Asia Thursday on speculation that U.S. Treasury yields will fall further due to concerns over a slowdown in the world's biggest economy. Strong demand at a U.S. five-year sovereign note auction overnight suggested that recent weak economic reports from the U.S. have made investors pessimistic about the country's growth outlook. The U.S. currency was weaker also because of speculation that foreign investors will buy new shares

Market Brief The Yen extended its strength through the Asian session this morning and was higher against most of the majors on a combination of weaker macroeconomic data and selloffs in the equity sector. Starting with the release of the durable goods orders (-1.0% act v 1.0% exp/-0.8% prev) and continuing through to the release of the Fed’s beige book, it was all about weakening sentiment during last night’s US session. The beige book business survey showed that the US economic growth slowed

The U.S. dollar continued its downward spiral following the release of worse-than-expected durable good orders. Orders fell for the second straight month in June, posting their biggest decline since August, when an increase in orders was anticipated. This data compounded fears about the struggling U.S. economic outlook. Investors await the release of the Federal Reserve's reading on regional economic conditions, known as the Beige Book, later in the session and the GDP data expected on Friday.

Risk assets were generally lowered yesterday amid worries over economic slowdown. Fed's beige book report and durable goods orders surprised to the downside while ECB's lending survey indicated credit tightening. Both US and European bourses slipped. In the commodity market, crude oil slumped as unexpected surge in inventory put further pressure on prices. Gold extended weakness to a 3-month low before buying interest pushed price higher. The Fed's July beige book reported that 'economic

News and views A risk averse tone. The European open marked a peak in risk appetite, the ensuing slide later fueled by a weak US durable goods report, and perhaps by some elements of the Fed’s Beige Book. The latter report contained no major surprises, describing modest increases, although two regions noted the pace had “slowed” – the fi rst use of the verb in that context since July 2009. The S&P500 is currently 0.8% lower. Commodities generally consolidated after yesterday’s fall, copper

Australian Dollar: The Aussie’s three-week ascent towards US90.50 came to an abrupt halt yesterday immediately after the release of the much-anticipated June quarter inflation data. The consumer price index increased by 0.6 per cent in the three months to June from 0.9 per cent in the March quarter. The annualised headline rate is now 3.1 per cent compared to market expectations of 3.4 per cent. The currency dropped sharply from 0.9010 down to 0.8925 as the data all but rules out a near-term

EURO The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.2965 level and was capped around the $1.3040 level.  The big news in the market today was a weaker-than-expected result for U.S. June durable goods orders.  Defying expectations of a positive print, the headline number came in at -1.0%, down from the revised May tally of -0.8%, while the ex-transportation component fell to -0.6% from the May result of 1.2%. 

The U.S. dollar lost slight momentum against major currencies after the U.S. Commerce Department announced today that durable goods orders declined in June opposite to expectations, meanwhile, earnings from U.S. companies provided mixed sentiments in financial markets, where U.S. stock markets continued to fluctuate throughout today’s midday session. The U.S. dollar index, which tracks the performance of the U.S. dollar against six major currencies including the Euro, the Pound, and the Yen,

Forex traders, join the daily All Things Forex broadcast- a live one hour program covering Forex and major economic events, trend developments, research, analysis, ideas, education, live traders forum, interviews with some of the most respected names in the trading world, and much more.. In the broadcast today: How Far Could the GBP Rally vs. USD Extend? In light of the recent return of risk appetite and the better-than-expected U.K. economic data, we explore the factors that could continue to