Concerning The Eur/usd Pair

Sunrise Market Commentary - Fixed Income: limited profit taking on core bond markets - Global core bond markets fell prey to some profit taking in a thin, dull trading session. However, given the strength of equities, bond losses were very limited and occurred at the onset of trading. Today, the eco calendar remains thin and the profit taking might go some further in the run-up to tomorrow's informal EU Summit. - Currencies EUR/USD rebound on profit taking - The correction in EUR/USD was prolonged, but the euro gains were modest and mostly technical in nature. The UK inflation report is the eye-catcher of the day as it may influence sterling. However, overall trading might again be thin ahead of tomorrow's euro Summit. The Sunrise Headlines - US Equities rose for a second ...

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 ...

Dukascopy Fundamental Analysis EUR European stocks dropped for a second day, to the lowest level in almost four months, as investors awaited a resolution to the political impasse in Greece and as Spanish credit risk surged. The Stoxx Europe 600 Index (SXXP) lost 1.1 percent to 247.75 at 2:15 p.m. in London, the lowest since Jan. 13, as the euro weakened for an eighth day. The Stoxx 600 has tumbled 9 percent from this year’s high on March 16, trimming this year’s advance to 1.3 percent. USD U.S. stock futures retreated, indicating the Dow Jones Industrial Average will drop for a sixth straight day, as Greece’s political impasse intensified concern about a worsening of the European sovereign-debt crisis. GBP U.K. retail sales fell the most in more than a year last month as poor weather ...

Sunrise Market Commentary - Fixed Income: German yields set record lows - Depressing April PMI's and unemployment data in the EMU set the tone for a risk off session. Core bonds surged higher and the German Bund future reached a new record high. In the US session, US equities rebounded and triggered profit taking in US treasuries. German bonds stayed near the highs however. - Currencies: Awful EMU PMI data hit the euro - The focus in currency trading shifted from the US to Europe. On Tuesday, EUR/USD declined due to dollar strength in the wake of the ISM release. On Wednesday, an awful set of EMU data triggered a next selling wave. EUR/GBP continues to set new lows, too. We doubt that the Draghi press conference will be able to change the course of events The Sunrise ...

The sentiment deteriorated today after the Spanish credit rating downgrade, which sent the euro to the downside; however, during the European session the common currency started to gain momentum and recover most of the losses incurred today as the results of major firms supported the sentiment to improve slightly, forcing upside pressures on the euro, but still, the bullishness remained limited after the downbeat Italian bond auction. The Euro reversed sharply to the downside after Standard & Poor's rating agency downgraded the Spanish credit ranking for the second time on deteriorating budget deficit and economic conditions, where the rating agency cut the rating of Spain by two notches to triple-B+ from A, while cutting the short-term rating to A-2 from A-1, turning the outlook on Spain ...

Dukascopy Technical Analysis EUR/USD "The euro area’s debt crisis is “almost over" - Italian Prime Minister Mario Moni (based on Bloomberg) The pair is attempting to advance further and it is likely to test the 7-month high at 1.3457. EUR/JPY "The yen move is driven by supply and demand before the final exchange-rate fixing of the fiscal year. I think we’ll start to see some rise in demand to buy JPY" - Mizuho Corporate Bank Ltd. (based on Bloomberg) EUR/JPY is holding bullish impetus while recovering from the 20-day average at 108.97. GBP/USD "Tesing that level is very much on the cards, but having said that, front-end sterling rates are pushing lower this morning and this could be having a bearing on the currency" - Lloyds TSB (based on Reuters) GBP/USD has successfully tested the ...

Dukascopy Fundamental Analysis EUR BMW AG, German car maker will recall 120,246 cars in China due to the difficulties with the automobile's batteries, nation's quality control agency reported on Tuesday. The recollection of the Coupe, BMW 6 Series Convertible, BMW 6 Series and BMW 5 Series, vehicles produced between year 2003 and 2010 will begin in May 10. An installation problem of the batteries can create safety risks, quality control agency claimed. USD US businesses project slower pace of revenue growth in China in 2012 amid rising operation costs and worries over global stagnation, according to survey of American Chamber of Commerce. About 43% of the firms surveyed expect increase in sales to approach 11% this year as compared to a 15% increase in 2011. The major contributors to ...

Dukascopy Technical Analysis EUR/USD "If buying of Treasurys gains steam and bond yields fall in the wake of Monday's Bernanke's comments, the dollar could face more pressure against currencies such as the euro" - Societe Generale (based on CNBC) Even though the pair is trading slightly above the 1.3291/1.3325 area, it is expected to move southwards in the nearest future as the EU debt risks have not been swept away completely. EUR/JPY "The Fed’s stance to support the economic recovery through policy easing and adding liquidity to the market is helping boost sentiment" - Shinkin Asset Management Co. (based on Bloomberg) EUR/JPY rallied above the 110 level and eased the risks of bearish reversal. GBP/USD "This is more of a dollar move than a sterling move. It feels like the market was ...

Dukascopy Technical Analysis EUR/USD "Whereas in the past the dollar would tend to fall as risk appetite was rising, the dollar is now benefiting from pro-risk developments, as U.S. economic data has generally bested expectations recently" - Bank of the West (based on CNBC) Even though EUR/USD continues to hover just below 1.3291/1.3325, it is expected to move southwards in the nearest future. The initial support is at 1.3140, followed by 1.3130 (55 day sma) and 1.3004. EUR/JPY "It's possible to see euro pick up slightly as people work out the implications of the bailout package and better economic statistics Sentiment toward Europe is slowly improving" - St. George Bank Ltd. (based on Bloomberg) EUR/JPY is currently in a phase of a bearish correction, which may last until 105.65 is ...