Bank Ubs Signaled

Forex News and Events: The S&P GSCI Index reversed its 2011 gains in the last six consecutive trading sessions. As a matter of fact, the index tracking 24 commodities broke down 7.6% from a high of 684.15 on April 30th to a more than four-month low low of 634.25 during yesterday’s trade session. This downturn in commodity prices can be explained on the one hand by headlines from the Euro area, as markets seem to be pricing in a second round of elections in Greece as well as a probable EU exit. On the other hand, the marked slowdown of commodity-intensive economies such as China -see Newsletter May 14- pushed prices lower in light of atrophied demand and lower infrastructure investments. From the foreign exchange perspective, the Australian dollar having experienced a 34% appreciation ...

FUNDAMENTAL OUTLOOK at 0800 GMT (EDT +0400) WORLD Asian equity markets slipped into negative territory overnight, helping set the scene for a modest dollar recovery after Monday’s weakness. The minutes from the RBA’s April 3 policy meeting sounded slightly more dovish than the policy statement itself, and more overtly signaled the possibility of a future rate cut – inflationary pressures permitting. Investor focus is likely to shift quickly back to Europe now, and to Eurozone bond markets in particular. Spain auctions bills today, but fears for Thursday’s bond auction have receded somewhat after Spain’s Tesoro announced its intention to issue a smaller-than-expected amount of only EUR1.5bn-2.5bn. Meanwhile the ECB’s Securities Markets Program has been dormant now for five consecutive ...

The start of the week was rather calm this week with tight ranged trading dominant. The dollar has been gaining grounds over the improved outlook for the economy and in Europe the weak recovery pace was highlighted. Today the attention in Europe turns again to inflation and to the United Kingdom to see if the BoE expectations are on track and whether more quantitative easing is likely. Price pressures have generally started to subside over the past couple of month, responding to the rise in spare capacity, especially after the contraction in the fourth quarter. The debt crisis in the euro area and the strict austerity measures have weighed negatively on growth and the temporary effects on raising inflation are starting to subside which can give the BoE room to breathe, though inflation ...

Gold fell to its lowest since mid-January on Wednesday after a modest upgrade of the U.S. Federal Reserve's economic outlook added zip to the dollar and gave investors an excuse to lighten holdings of bullion. The Fed gave few clues on prospects for further monetary easing on Tuesday but offered a slightly brighter economic outlook, backed by a report that showed retail sales posting their largest gain in five months in February. Spot gold fell more than 2 percent to $1,642.30 per ounce by 1324 GMT, having hit a low of $1,640.30 - its lowest since January 16. U.S. April gold shed 3 percent to $1,642.70 per ounce. Silver was influenced by gold, falling 1.8 percent. The fall in gold reflects removal of the premium attached to further quantitative easing, with prices giving up almost all ...

(Reuters) - Gold fell to its lowest since late January on Wednesday after a modest upgrade of the U.S. Federal Reserve's economic outlook gave the dollar fresh impetus and investors an excuse to lighten holdings of bullion. The Fed gave few clues on prospects for further monetary easing on Tuesday but offered a slightly brighter economic outlook, backed by a report that showed retail sales posting their largest gain in five months in February. Spot gold fell 1.25 percent to $1,654.26 per ounce by 1140 GMT, its lowest since January 25. U.S. April gold shed 2.15 percent to $1,657.90 per ounce. The fall in gold reflects removal of the premium attached to further quantitative easing, with prices giving up almost all of the gains made since January 25 when the Fed signaled the potential for ...

(Reuters) - Gold edged higher on Thursday, but eased from session highs after the euro declined when the European Central Bank cut its growth forecasts for the region and signaled its role in fighting the debt crisis was over. Risk-linked assets such as the euro, with which gold is at its most tightly correlated in over two years, were boosted by confidence that Greece would complete a bond swap with private investors to avoid defaulting on its debt. ECB President Mario Draghi doused hopes for more multi-billion euro loans for commercial banks and put the onus back on governments to fight the crisis, following the central bank's decision to leave euro zone rates unchanged. Gold often profits from economic pessimism but its close correlation with the euro tempered gains. Meanwhile, a ...

www.sunbirdfx.com The US stock markets made the unbelievable and completed another green week. Indices rose 0.3% as the S&P 500 is touching the pick at 1370 points and although many analysts estimate that the correction will come soon, there is a good probability that we will see continuation of the rally. Many hedge funds are waiting for a correction of 5%-10% but the indices have traded around the current highs for several days without correcting and this is a sign for another break-up. If the S&P 500 breaks through 1370 points, the hedge funds managers will have no choice but to join the market and this might push the stocks even higher. The main elements that could threat this rally are obviously the European debt problem and the rally of the oil price which is about to cross above ...

(Reuters) - The euro hit an eight-week high against the dollar on Tuesday, helping lift stocks and commodities on signs a Greek bailout agreement was near, but the rally paused after a key meeting on Greece was postponed by a day. The euro rallied after Greece appeared to be close to terms on a 130-billion-euro bailout. A government official said Athens was drafting a list of painful reforms to clinch a new financial package, moving it a step closer to a deal that is needed to avoid a chaotic debt default. But a meeting of Greek political leaders was postponed until Wednesday because a draft of the bailout's terms was still not available, a party official said. The euro at one point jumped more than 1 percent to a session high of $1.3270, hitting its highest level since December 12. ...

(Reuters) - The euro was underpinned on Tuesday by hopes a way would be found to push through a second bailout deal for Greece, though fresh signs of exposure to Europe's economic troubles among leading banks rekindled investor unease, sending shares lower. U.S. stock index futures pointed to the unresolved Greek deal weighing on Wall Street at the open, ahead of Senate testimony from Federal Reserve Chairman Ben Bernanke that may grab the spotlight at 1500 GMT (10 a.m. EST) after last week's strong jobs data. Greece's prime minister and leaders of its main political parties are set to resume talks later Tuesday on new austerity measures demanded by the EU in return for another bailout. The deal needs to be approved by February 15 if the money is to be available in time to meet a March ...