As Trader’s Price

Forex News and Events: After a slight pullback in earlier European trades, risk appetite cautiously in Asian session crept back into the markets. EURUSD was range bound between 1.3160 and 1.3200 while AUDUSD continued its strong rally running to 1.0757. Asia’s regional indices were green across the board with the Hang Seng up 1.94% and Shanghais 1.96%. The catalyst was the generally positive manufacturing PMI prints globally which suggested that the global slowdown might now be as deep as originally feared. But more importantly for FX traders, this should give European policy makers more time. With growth, comes additional revenues which increase capital market investors confidence--two things crucial to the survival of the Europe. In fact, should Eurozone growth unexpectedly rally back ...

Forex News and Events: FX markets were very quiet yesterday with closes to zero data or news stories to spark any kind of directional volatility. Without any real drivers, FX pairs just bounced around with flows on the light side. Overnight, EURUSD ranged between 1.2994 and 1.3020 for most of the session while AUDUSD roamed around 1.3010 handle. News agencies tackled the death of Kim Jong-Il with as much zeal as they could muster, but with little spillover effect into the financial markets. Kim Jong Il's youngest son, Kim Jong Un, was later named and praised by North Korea's official news agency KCNA as "the outstanding leader of our party, army and people". Initially there were some worries of instability and generally fears of a disorderly succession, as missiles were reported to have ...

Forex News and Events: The plethora of risk events scheduled this week have generated a full-fledged flight to safety. Yesterday, weak PMIs and news flow from the EU put the spotlight on EU debt concerns and fears of a global economic slowdown. It seems that risk is everywhere and safe haven trades are extremely crowded (making for their own risk events). Welcome to September. Gold looks comfortable above $1900 while US-Ts and JGBs yield curves continue to flatten as investors rush into anything deemed “risk free”. Asian regional indices dropped again following yesterday’s weak European session as the Nikkei dropped -2.20% and Hang Seng -1.40%. In FX price action, all the making of a risk off event with growth currencies such as AUD, NZD, NOK and EUR is getting sold off and active ...

Forex News and Events: Cowboys and bargain hunters stepped in the market to give risk appetite a boost. Asian regional indices were higher across the board, with Shanghai leading the way up 1.46%. The correction in risk was good buffer, allowing everyone a moment to take a deep breath in a market that was becoming very negative. USD came under selling pressure, with the EURUSD able to climb back above the 1.4000 handle and USDJPY hitting stops at 79.00, and briefly running to 78.49. The thin summer liquidity caused choppy patterns and exacerbated trader’s apprehension. On the bright side strong China data across the board GDP 9.5% vs. 9.4% exp, Retail sales 17.7% vs. 17% exp, while Industrial Production hit 15.1% vs. 13.1% exp, supported risk accumulation. However, the more entrenched ...

Forex News and Events: Risk appetite came roaring back in Asian session following a decent US session in stocks and the USD paid the price. But in our mind is more a minor correction then shift in direction. EURUSD rallied nicely off the 1.4200 support, climbing to 1.4384 while USDJPY was content trading in a tight 80.09 to 80.35 range. Commodities also go into the risk rally as Crude WTI moved up 91.14 to 94 and Gold rose to 1542.72 in Asia. The recently maligned Asian regional indices were able to seem somewhat buoyant as the Nikkei rose 1.10% and the heavily sold Shanghais composite up 0.52%. This sudden rally in risk correlated trades have taken us slightly aback and today, most participants will be waiting with baited breath for the results of the Greece no confidence vote ...

Forex News and Events: FX markets are still trading around the evolving situation in Greece. In fact participants are discounting just about everything else non-Greek related. Gains in EURUSD made yesterday have slowly eroded in Asian trading as headlines suggest that problems in Greece are far from being solved. EURUSD dropped from 1.4223 to 1.4133, while EURCHF continues to pressure the 1.2000 region. Asian regional indices were broadly lower with Shanghai composite posting new yearly lows. Headlines from ex-US Fed Chairman Greenspan saying default by Greece is “close to certain”, greeted European traders--really setting the negative tone for European trading. Risk appetite got some relief from market chatter that the PBoC would expand the CNY trading band this weekend from 0.5% to 1% ...

“It all comes back to commodities,” as Alan Knuckman, editor of Resource Trader Alert, likes to say. From a trader’s perspective, Mr. Knuckman is absolutely right. One need only look at events unfolding around the world, and the commodity price action precipitating them, for supporting evidence. According to data released by the World Bank, food prices rose a stunning 15% from October through January. The World Bank’s own food index now sits just 3% below its 2008 record. (Though a separate index maintained by the UN’s Food and Agriculture Organization has already surpassed 2008 levels.) The price spike prompted World Bank chief Robert Zoellick to note: “Global food prices are rising to dangerous levels and threaten tens of millions of poor people.” From food riots across the Middle ...

Forex trading has been relatively subdued with risk appetite slowly returning. EURUSD was able to trade up to 1.3372 while USDJPY was able to bounce off the 82.34 lows and climb to 82.73. Two stories dominated trading in Asia this morning. First was the RBA’s decision to hold rates at 4.75% as was widely expected. The accompanying statement was brief and basically unchanged from the statement in Nov which raised rates 25 bps stating that "this setting of monetary policy as appropriate for the economic outlook." Markets are now expecting the next hike to come in June 2011 however heavily dependent incoming data and Chinese monetary policy. Speaking of China, the 2nd story was a rumor driven by the official China Securities Journal report predicting that interest rate hikes will come ...

The Canadian dollar’s rally extended today for the second straight day against the U.S. dollar and the Japanese yen and for the third consecutive day versus the euro as the equities gained and the prices for crude oil, the main nation’s export, increased, spurring the demand for the currencies tied to growth. The Standard and Poor’s 500 Index rose by 1.1 percent. The expanding U.S. economic recovery drained the oil inventories, boosting the demand. July delivery for crude oil advanced by 3.8 percent. The Canadian currency considered the ”growth currency” as it has tendency to follow the moves of stocks and commodities. It seems that the risk appetite is returning to the markets. And the loonie, as the Canadian dollar commonly nicknamed, may profit from the trader’s willingness to risk. ...