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Although The Market ReactionTitle:
Euro bounces off 4-month low, but remains under pressure
(Reuters) - The euro extended its rebound from last week's four-month low on Monday but investors remained concerned over financial turmoil in Greece and Spain, drawing little comfort from a broad G8 pledge to take steps to fight the euro zone's debt crisis.
The common currency rose on short-covering after speculators piled up a record amount of bets against it, according to data from a U.S. financial watchdog released late last week.
"We are entering a consolidation phase with regard to the euro. It will not be known for a while whether Greece will stay in the euro or not with a Greek election a few weeks away," said Minori Uchida, chief analyst at the Bank of Tokyo-Mitsubishi UFJ.
"The market may show some minor reaction to Greek opinion polls... but it is hard to sell the euro in ...
Title:
Euro Sell-Off Accelerates As Greece Will Hold Now Elections
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? ...
Title:
EUR/GBP Testing 80.00 Barrier, As BoE Stops Printing Press
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 ...
Title:
Anti-austerity votes press euro lower
The euro fell heavily across the board on Monday after Greek and French elections cast doubt on politicians' commitment to austerity plans aimed at tackling the euro zone debt crisis.
Traders said the euro, which hit a three-month low against the dollar, its lowest in 3-1/2 years against the British pound and a 2-1/2 month trough versus the yen, was likely to suffer further losses in coming days.
In the biggest blow to the common currency, the failure of Greece's two main parties supporting the country's international bailout to secure a parliamentary majority threw into question the future of the program and potentially the country's membership of the euro.
In France, Socialist Francois Hollande, who has pledged to balance the budget but more slowly than his opponent, ousted centre- ...
Title:
Euro tumbles as Greek vote threatens austerity
The euro fell heavily across the board on Monday after Greek and French elections cast doubt on politicians' commitment to austerity plans aimed at tackling the euro zone debt crisis.
Traders said losses, which saw the common currency hit a three-month low against the dollar, its lowest in 3-1/2 years against the British pound and a 2-1/2 month trough versus the yen, were likely to be extended in coming days.
In Greece the failure of the two main parties supporting the country's international bailout to secure a parliamentary majority threw into question the future of the program and potentially Greece's membership of the euro.
In France Socialist Francois Hollande, who has championed a longer time-frame for eliminating the deficit, ousted centre-right incumbent Nicolas Sarkozy in a ...
Title:
US Non-Farm Payroll Disappoints; USD Directionless, AUD Slides and JPY Gains
April's unemployment rate eased to 8.1%, but it was a mainly because of people leaving the workforce.
The Non-Farm Payroll data came out 115K, disappointing a 173K forecast which the market has been scaling back throughout the week. March data was revised from 120K to 154K. Although the data came out very weak, the market seems to have been prepared for this disappointment, and the reaction in the currency market was not clear at first.
Source for the charts from the Bureau of Labor Statistics: http://www.bls.gov/home.htm
2 straight months of weak employment data adds to probability of QE. This could be a reason the USD is being pressured, although risk aversion should boost the USD.So USD direction is not clear.
The clearer reaction is coming from the commodity currencies like the AUD ...
Title:
Major Currency Cross Rates Little Changed Ahead Of The Payrolls
Sunrise Market Commentary
- Fixed Income ECB can't move global bonds
- Global core bonds ended the session unchanged, as initial disappointment that the ECB wasn't more dovish dissipated fast. Today's payrolls are key and might decide whether the 6-week rally is over or has one more leg.
Currencies: Major currency cross rates little changed ahead of the payrolls
- EUR/USD gained temporarily during the ECB press conference as Draghi was less dovish than some in the market had expected. However, the move was technically insignificant as sentiment on risk remained fragile. Today, the payrolls are the key factor for (currency) trading. Investors might stay cautions on the euro to avoid this weekend's political event risk.
The Sunrise Headlines
- US Equities dropped for a ...
Title:
Euro drops as uncertainty weighs before U.S. jobs data
(Reuters) - The euro slid against the dollar for a fourth day on Thursday as European Central Bank chief Mario Draghi gave a more upbeat assessment of the region's economy but left the door open for policy easing, keeping investors cautious a day before key U.S. labor market data.
Trade was choppy, with the euro temporarily bouncing from a two-week low, after Draghi said the euro zone economy was likely to recover this year, although the outlook remained vulnerable to downside risks. He spoke after the ECB kept rates unchanged at 1 percent.
While the euro initially rose after Draghi's comments, the "market reaction soon became muted because the ECB really did not change anything, and it was pretty much status quo," said Mark McCormick, G-10 currency strategist at Brown Brothers Harriman ...
Title:
Euro drops 4th day vs dollar as uncertainty weighs
(Reuters) - The euro slipped against the dollar from a fourth straight day on Thursday as European Central Bank chief Mario Draghi gave a more upbeat than expected assessment of the region's economy but left the door open for policy easing.
The euro bounced from a two-week low against the greenback after Draghi said the euro zone economy was likely to recover this year, although the outlook remained vulnerable to downside risks. He spoke after the ECB kept rates unchanged at 1 percent.
While the euro initially rose after Draghi's comments, the "market reaction soon became muted because the ECB really did not change anything and it was pretty much status quo," said Mark McCormick, G-10 currency strategist at Brown Brothers Harriman in New York.
"ECB action is still possible," he said. " ...
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