Break Even After Four Straight

The euro rose from a four-month low against the dollar on Friday as investors pared bets against the single currency after a 4 percent drop this month but concerns about Greece and Spain were likely to keep it under pressure. Technical support also helped, traders said, as the euro approached its January low of $1.2623. A break beneath that would opened the door to a slide toward the 2010 lows around $1.1875. Despite Friday's gains, investors preferred the relative safety of the U.S. dollar and the Japanese yen as worries about Europe persisted after Moody's cut the credit ratings of 16 Spanish banks on Thursday. Some traders had earlier said the euro's recent decline could slow, given investors may be wary of holding positions over the weekend when leaders of the G8 major industrial ...

Brent crude oil futures gained on Tuesday, as the euro zone narrowly avoided recession and as better-than-forecast German first quarter GDP data raised hopes that Germany will steer the way through the European debt crisis. The euro zone economy stagnated, with zero growth, the EU's statistics office Eurostat said on Tuesday. The results were more positive than forecast, boosting riskier assets, but the region's debt crisis has sapped the life out of the French and Italian economies and widened a split with paymaster Germany. Brent crude rebounded from earlier losses, rising by 30 cents to $111.87 a barrel by 05:34 a.m. EDT (0934 GMT) after sliding to $110.04 on Monday, its lowest intraday price since January 25. U.S. crude dropped 22 cents to $94.56 a barrel, after Monday's fall to $ ...

The euro fell to a nearly four-month low against the dollar on Monday on fears Greece could exit the euro and worries that weak industrial data signaled that Europe was heading for recession. Concerns about slowing Chinese and global growth also drove down higher-yielding currencies and boosted the safe-haven dollar and yen. The Australian dollar fell to a five-month low against the greenback, while the New Zealand dollar dropped to a 4-1/2-month trough. Greece's political impasse, as a major Greek leftist party refused to join a unity government or create a government of technocrats, also pushed the country's sovereign spreads over German bunds to their widest level since November. Greece's troubles helped drive up Spain's and Italy's borrowing costs. Spain's bill auctions also showed ...

Fundamental Analysis EUR "Equity markets are driven by two things: fundamentals and sentiment." - Lorne Baring, managing director at B Capital SA European stocks climbed on Friday after a report showed U.S. consumer confidence increased to the highest level in four years in May. USD "Confidence has been boosted by lower gasoline prices." - Paul Dales, a senior economist at Capital Economics Ltd. U.S. consumer confidence rose by more than expected in May as consumers became more optimistic on the outlook of the country's economy. GBP "The April producer price data … do little overall to reduce the uncertainty as to whether or not the Bank of England will eventually do more Quantitative Easing." - Howard Archer, an economist at HIS Global Insight U.K. producer prices rose by more than ...

Global stocks rebounded on Friday on data that showed U.S. consumer sentiment rose to its highest level in more than four years in early May, but commodity prices fell after weak data from China reduced demand expectations. European and U.S. stocks turned higher after the Thomson Reuters/University of Michigan survey showed nearly twice as many Americans reported hearing about new job gains than fresh job losses, despite a recent slowdown in job growth. The gains in equity markets helped trim losses in crude oil and led the euro to rebound against the U.S. dollar. "Households are feeling more comfortable. It's pretty good news for consumer spending," said Gus Faucher, senior macroeconomist at PNC Financial Services in Pittsburgh. The Dow Jones industrial average .DJI was up 35.12 ...

Dukascopy Fundamental Analysis EUR European stocks declined as company earnings missed estimates, talks on forming a Greek government entered a fifth day and JPMorgan Chase & Co. posted a $2 billion trading loss. Asian shares and U.S. futures fell. USD Wholesale prices in the U.S. fell in April for the first time in four months, led by a decline in fuel costs that signals inflation may cool. The producer price index dropped 0.2 percent after no change in March, Labor Department figures showed today in Washington. GBP Britons turned gloomier last month as a slump in construction pointed to an even deeper recession and producers ramped up prices, highlighting the long and difficult road back to economic health. CHF Swiss stocks fell for the seventh day, heading for the biggest weekly ...

Global shares slid for a sixth day while safe-haven U.S. and German government debt rose on Wednesday as rising fears about the fragility of Spanish banks and a political impasse in Greece worsened fears about the euro zone debt crisis. The concerns over Europe added to those of U.S. and global economies turning softer. The turmoil put the Dow Jones industrial average on track for a sixth day of losses and nearly wiped out this year's gains for European shares. Oil prices also slid for a sixth straight session as gold touched a four-month low that all but erased its gains for 2012. The euro zone debt crisis prompted investors to favor the dollar and seek safety in government debt. But U.S. and European stocks pared losses while U.S. Treasuries trimmed gains after markets closed in ...

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 ...

Market wrap A disappointing US payrolls report hurt sentiment, pushing equities, risky currencies, commodities and interest rates lower. Only 115,000 jobs were added in April versus 160,000 expected. There were, however, positive back revisions and the unemployment rate fell from 8.2% to 8.1%, initially causing some confusion in markets before judgement was passed it was a weak outcome. Also reported was lower Eurozone manufacturing activity, adding to the negative market tone. The S&P500 closed down 1.6% and the CRB commodities index fell 1.4%. US 10yr treasury yields closed 5bp lower at 1.88%, earlier making a 3 Feb low at 1.87%. Australian 3yr bond yields fell 6bp. A few hours ago, results from European elections were announced. France has a new (socialist) president, and Greece's two ...