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Ahead Of Heavy TradingTitle:
European markets set to open with more losses amid political woes
The tension is evident and the market remains negative amid the uncertainty over the euro outlook and growing fear of a Greek exit. The selloff was reignited midday yesterday after Greece said talks have failed and elections are now the only option.
Investors are worried that anti-austerity parties will be able to now win the vote and negate the agreement with lenders which will leave Greece insolvent and bankrupt, and eventually drop out of the euro! This tension is keeping the market on the edge and pressured stocks to their 2012 lows with the lead of financials of course.
The euro was surely on the receiving end and still trading under heavy bearish pressure. The EUR/USD as of 03:00 EST is hovering around $1.2695 trading below the critical $1.27 areas. The pair recorded the high of $1. ...
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Risk Aversion Continues to Weigh on Higher-Yielding Currencies
Following multiple failures by Greek politicians to form a new government, investors are now concerned about what impact a possible new election will have on Greece's status in the euro-zone. The news weighed down on riskier currencies, particularly the euro, throughout Friday's trading session. The EUR/USD dropped to a fresh 3 ½ month low at 1.2903 before staging a slight correction to close out the week at 1.2917. Turning to this week, euro-zone news is once again forecasted to dictate the direction the market takes. Any additional negative announcements out of Greece could drive the euro even lower against its main currency rivals.
Economic News
USD - US Consumer Sentiment Gives Dollar a Boost vs. JPY
News that consumer sentiment in the US reached a more than four-year high gave the ...
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Heavy Euro Selling Pressure As Greece Standoff Continues
U.S. Dollar Trading (USD) the mood soured overnight in the US session and into Wednesday’s Asian session as rhetoric of the Greece far left politicians suggested the recent bailouts may be torn up and Greece forced to exit the Eurozone. The EUR/USD has broken below 1.3000 once again and Gold is falling heavily as USD and cash become king. Looking ahead, FOMC Member Pianalto.
The Euro (EUR) focus has swung back to the Europe and the Greece elections continuing to have negative effects on the market. The Greece political stalemate is unlikely to end shortly and the uncertainty will likely lead to more selling. Major support is seen at 1.2950 and we are poised to test this level this session. The Sterling (GBP) The GBP/USD was sold down to the 1.6125 on the risk aversion but EUR/GBP selling ...
Title:
Euro Testing Key Support Levels
Sunrise Market Commentary
- Fixed Income Weak US payrolls push core bonds higher again
- On Friday, it was weaker US payrolls that helped core bonds eke out more gains, but non-core bonds held up quite well. Spreads even narrowed in the intra-EMU bond markets. We fear that this won't be the case today, as French and Greek election results inject uncertainty into markets.
- Currencies: Euro testing key support levels
- On Friday, trading in the major euro cross rate was rather calm, but the pressure remained to the downside. The US payrolls were unable to change this pattern. This morning, EUR/USD is testing the key 1.2974 support while EUR/GBP is trading south of the 0.8068 level. A sustained break below these levels would raise a red alert for the single currency.
The ...
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ECB Press Conference Helps Euro Recover
After falling throughout the morning session, the euro was able to stage a partial recovery during afternoon trading yesterday, following comments from ECB President Draghi who reiterated his earlier predictions of euro-zone economic growth during the second half of the year. Turning to today, investors will be carefully monitoring the US Non-Farm Payrolls, set to be released at 12:30 GMT. Analysts are forecasting today's news to come in at 173K. While that number would represent a significant increase over last month's Non-Farm figure, it is not considered high enough to signal strong growth in the US labor sector. Still, should today's news come in at or above expectations, the greenback could see gains to close out the week.
Economic News
USD - All Eyes on Today's US Non-Farm ...
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Oil drops sharply on U.S. economic data, technicals
(Reuters) - Crude oil futures dropped for a second straight day on Thursday as more signs of slowing U.S. economic growth and swelling U.S. inventories sparked a wave of selling that sent prices crashing through key support levels.
U.S. crude ended 2.6 percent lower, the biggest one-day percentage loss since December 14, while Brent crude finished down 1.8 percent, racking up a 3 percent loss in two straight days, its biggest two-day percentage loss since February 28.
Slower-than-expected growth in the massive U.S. service sector dragged on markets as traders awaited the April U.S. payrolls data on Friday. Oil markets have been balancing supply concerns stemming from a string of disruptions across the globe and the potential loss of Iranian crude due to Western sanctions against fuel ...
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Gold eases ahead of euro zone rate decision
(Reuters) - Gold eased on Thursday, under pressure from a decline in the euro ahead of a rate decision from the European Central Bank, while concern about Spain's ability to finance itself simmered after yields shot up at a debt auction.
The ECB meets in Barcelona to discuss monetary policy and is expected to resist pressure to do more to fight the debt crisis by maintaining its bond-buying program to help Spain, which has fallen into recession.
Spain attracted solid demand for its three- and five-year bonds at auction, but saw its borrowing costs jump, reflecting investors' concern about Madrid's ability to finance itself and avoid a more protracted economic slowdown.
Gold has fallen by about 1 percent so far this week, having dropped for three out of the last five weeks, prompting ...
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Focus on ECB’s Press Conference
FUNDAMENTAL OUTLOOK at 0800 GMT (EDT +0400)
WORLD
Expectations are building that today’s ECB press conference could see the central bank turn significantly more dovish., with euro negative consequences. Wednesday’s series of worrisome Eurozone data prints would certainly seem to warrant a rhetorical shift. It has also not gone unnoticed that President Draghi endorsed the concept of a “growth compact” in parliamentary testimony last week for the first time. Investors have also remarked on the meeting’s location – in Barcelona for a change – in the expectation that this will somehow concentrate minds on the gravity of the situation facing the periphery, thus provoking a more dovish outcome.
These observations are not without merit, but market speculation of a possible rate cut – either to ...
Title:
Euro falls 3rd day as weak data weighs before ECB
(Reuters) - The euro slid for a third straight day against the dollar on Wednesday after dismal European manufacturing data added to fears about a broadening slowdown in the region ahead of a European Central Bank meeting and key elections in France and Greece.
The euro came off its lows, however, on speculation the European Central Bank may provide euro zone banks with more liquidity in a third long-term refinancing operation after the euro zone data, in both indebted and core nations, confirmed a worsening economic outlook.
Italy's manufacturing sector shrank more than expected, while data from Germany, Spain and France also showed factory activity falling significantly.
Political uncertainty also looms large, with upcoming elections in France and Greece this weekend having the ...
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