Afternoon Decision To Hold

Sunrise Market Commentary - Fixed Income: Fresh elections in Greece further support core bonds - German bund came off the contract highs at the start of the session on better German Q1 GDP data. The move didn't last long however and the announcement of fresh Greek elections marked an intraday U-turn. This morning, the German Bund future and US Note future once again reach new contract highs. - Currencies: euro sell-off accelerates as Greece will hold now elections. - On Tuesday morning it looked temporary that the euro might enjoy some breathing space as the German Q1 growth was much stronger than expected. However, the rebound had no momentum at all. The euro was again hammered as talks on the formation of the Greek government collapsed. Is the euro heading for a free fall? ...

Sunrise Market Commentary - Fixed Income: Largely uneventful session for core bonds - Core bonds had an insignificant, technical and sentiment-driven session that left bond yields slightly higher in the close. Overnight, negative headline news on JP Morgan and Greece triggered a moderately strong opening of the Bund. Europe will be in the focus today with the publication of the Spanish banking plan and the EU spring forecasts. - Currencies: EUR/GBP testing 80.00 barrier, as BoE stops printing press - On Thursday, sentiment on risk turned slightly less negative, even without progress in the Greek debt/election crisis. Nevertheless, the decline in EUR/USD slowed. EUR/GBP reached a minor low just below 0.8000 as the BoE halted its program of asset purchases. For now, we see no ...

The euro spent most of the day slightly above recent three-month lows hit against the US dollar and Japanese yen. Greece's inability to form a new government has raised the prospects that a new election will be held in the coming weeks, which has resulted in additional risk aversion in the marketplace. Turning to today, traders will want to pay attention to a batch of US data, including the PPI figure and the Prelim UoM Consumer Sentiment. Both indicators are considered valid indicators of overall economic health and have the potential to create market volatility before markets close for the week. Should any of the data come in above expectations, the USD may be able to see some upward movement against the yen today. Economic News USD - Dollar Turns Bearish vs. GBP The dollar turned ...

Forex Morning Briefing : Greece and European issues still in focus; BoE to announce its monetary policy What’s new: Equity: Asian and US equities down on Greek political instability Spain: Government to nationalize Bankia Forex: AUD/USD pares yesterday’s losses on stronger unemployment rate Forex: EUR/USD breaks the 1.2950 support, investors remain bearish Rates in Asia and Indices: EUR/USD 1.2925 1.2964 0.21 % USD/CHF 0.9266 0.9293 0.21 % GBP/USD 1.6123 1.6151 0.05 % USD/JPY 79.61 79.77 -0.05 % EUR/CHF 1.2009 1.20131 -0.01 % EUR/JPY 102.91 103.36 -0.26 % Dow Jones 12748.48 12921.81 -0.75 % Nasdaq 2588.97 2635.71 -0.32 % S&P 500 1343.13 1363.73 -0.67 % Nikkei 225 8985.9 9075.63 - ...

This is the key question for currency traders right now. The fundamental back-drop looks challenging for the euro. Although the Merkel/ Hollande rift seems overdone to us, Greece is the real problem. The leader of the New Democracy party announced late last night that he had failed to form a coalition government. The baton is now passed to the leader of the radical left wing Syrizia party, which now has three days to form a government. If this fails then another round of elections is on the cards for June. However, these elections could coincide with Greece running out of money, which makes them a much riskier prospect than the elections held last weekend. Election deadlock However, why has the euro not fallen through the floor? Back in 2010 the mere mention of the word bailout caused ...

Sunrise Market Commentary - Fixed Income: Little support from elections - Global core bonds set new contract highs at the start of the European session after the French and Greek elections. However, the negative sentiment surprisingly didn't push through and many markets bounced off key levels. - Currencies: euro limits the damage after French and Greek elections. - On Monday, the euro opened sharply lower after the election results in Greece and Spain. However, the price moves developed in an orderly way. Even more, the single currency showed remarkable resilience and reversed part of the early losses. The test of the 1.2974 support was rejected. The EUR/GBP 0.8068 support remains under pressure. The Sunrise Headlines - US Equities hovered sideways on Monday, halting a ...

U.S. Dollar Trading (USD) the USD was sold post FOMC overnight with the maintaining its easy monetary policy with a slight upgrade to forecasts. Overall the FOMC meeting was very supportive for markets and weak for the USD going forward. Fridays Q1 US GDP report will be critical for the US recovery story and the Global stock market rally waiting for clearer information on the health of the US economy. Looking ahead, Weekly Jobless Claims are forecast at 375k vs. 386k previously. March Pending Home Sales are forecast at 1% vs. 0.5% previously. The Euro (EUR) the Euro is once again back above 1.3200 and is looking to test recent resistance near 1.3250 as stock markets rally and the fear over Eurozone debt markets resides for now. The market is looking to ECB President Draghi’s speech ...

(Reuters) - The Federal Reserve is considering possible sales of assets from its Maiden Lane III portfolio, which was created during the bailout of insurer American International Group (AIG) (AIG.N), a New York Federal Reserve spokesman said on Wednesday. Maiden Lane III grew out of the purchase of $29.3 billion in collateralized debt obligations from certain counterparties to an AIG unit. Back in February, the Fed completed the sale of all the remaining securities from its Maiden Lane II portfolio, which had $20.5 billion worth of risky mortgage bonds owned by several AIG insurance subsidiaries. "The change in the investment objective for ML III reflects a strategic decision to explore possible sales of some of the assets in the portfolio in light of improving market conditions and the ...

Forex News and Events: Yesterday FX had a busy day with risk appetite slowing, and traders migrated back into USD and JPY. Equities had an up and down day as the optimism generated by the strong Chinese PMI gained to last the day (coming in at 53.1). The catalyst looks to have been the mixed PMI data out of Europe and worrying unemployment data from the Eurozone. Germany outpaced estimates, but Sweden and France underperformed. Headline Euro zone PMI came in unchanged at 47.7. In a surprise comeback, UK PMI manufacturing jumped to 52.1 with the prior read revised higher to 51.5. This news combined with Switzerland PMI, which cleared the 50 threshold at 51.1, indicates that the economic problems are becoming increasingly isolated in the Eurozone. Eurozone unemployment climbed to 10.8 ...