Currency Materially In Early

Sunrise Market Commentary - Fixed Income: Risk off pushes German bond yields to new lows - Risk off sentiment pushed core bonds higher and non-core bond yield spreads re-widened substantially. The Summit didn't bring new information, but another hole found in Spain's regions' budgets might get attention today. - Currencies EUR/USD cedes the 1.2624 support - On Wednesday, the EMU debt crisis was again omnipresent. Markets feared that the EU leaders wouldn't be able to take decisive action to address the debt crisis. Extreme risk aversion pushed EUR/USD to a new low for 2012. The losses of EUR/GBP were more contained, as poor UK retail sales and rather soft BoE minutes kept the door open for more policy stimulation. The Sunrise Headlines - In the final hour of trading, US ...

Highlights - An acceleration in deposit withdrawals, combined with the prospect of an anti-austerity party winning the next election, has brought to the fore concerns about a potential Greek exit from the euro zone. - Our base case assumption is that under the most likely scenario, the Greek election will lead to a government that sticks to an EU/IMF program, even if the terms are renegotiated. - However, we do believe that Greece needs a further restructuring of its debt and we do think the country will ultimately exit the euro - we're just not convinced that Europe is ready for this to happen at the moment. - If an accident does occur and Greece does leave the euro in the near term, it would have global financial ramifications that could range from severe to catastrophic. ...

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 ...

Sunrise Market Commentary - Fixed Income: Small changes after volatile trading - Core bonds traded volatile due to economic data and bond auctions. The Fed had the final saying. The FOMC statement showed that the Fed was slightly more optimistic on growth and the governors more hawkish in their rate forecasts. However, policy remains unchanged and Bernanke kept the door for more QE open. - Currencies: Fed doesn't help the dollar - On Wednesday, trading in most major currency cross rates was confined to recent ranges. EUR/USD is holding near the recent highs. The Fed kept a soft tone and this was a slightly negative for the dollar. Sterling lost temporary ground as Q1 GDP data showed that the UK has slipped back into recession. However, the EUR/GBP 0.8222 resistance did its job. ...

The Australian dollar rose today on the speculation that labor market in the United States continue to improve. The currency was falling this week on the forecast that the Reserve Bank of Australia may perform quantitative easing. Yesterday, the employment report from Automatic Data Processing showed that US employment continued to grow with steady pace last month. Tomorrow, non-farm payrolls are expected to confirm that, while the unemployment rate is expected to remain steady. Jobless claims report today is also expected to show a stable level of unemployment. As for the economic environment is Australia itself, it wasn’t nearly as good as the one in the USA, leading to the speculation that the RBA will reduce interest rates next month. The central bank left the main interest rate ...

The Australian dollar rose today on the speculation that labor market in the United States continue to improve. The currency was falling this week on the forecast that the Reserve Bank of Australia may perform quantitative easing. Yesterday, the employment report from Automatic Data Processing showed that US employment continued to grow with steady pace last month. Tomorrow, non-farm payrolls are expected to confirm that, while the unemployment rate is expected to remain steady. Jobless claims report today is also expected to show a stable level of unemployment. As for the economic environment is Australia itself, it wasn’t nearly as good as the one in the USA, leading to the speculation that the RBA will reduce interest rates next month. The central bank left the main interest rate ...

(Reuters) - The euro dropped from a two-week high against the dollar and a nearly five-month peak versus the yen on Wednesday, hurt by widening interest rate differentials between safe-haven German debt and peripheral bonds, suggesting renewed euro zone worries. Italian and Spanish debt prices took a beating on concerns about Spain's slow progress in boosting its finances. The wave of Spanish and Italian bond selling benefited German Bunds, whose yields slipped back below 2 percent for the first time this week. Yields on Spain's 10-year bonds rose to a one-month high of 5.40 percent. Benchmark Italian yields climbed to 5.0 percent, a one-week peak, which reflected some anxiety and undermined the euro. "Even though U.S. yields fell today, Bund yields fell further, so the dollar is ...

(Reuters) - Commodity currencies fell broadly on Tuesday after the Reserve Bank of Australia kept interest rates on hold and again left the door open for an easing should the economy weaken materially. A second day of falls for growth-linked units such as the Australian dollar and the kiwi -- hit yesterday when China announced its lowest annual growth target in eight years -- gave a broad boost to the yen, including against the U.S. dollar. But market participants noted there were many investors waiting to scoop up the greenback on any dips as they expect it to resume its rally on the Japanese unit. "The RBA decision was broadly in line with expectations, but we saw the yield on the two-year bond dip and that's what put the Aussie under some pressure," said Koji Fukaya, chief currency ...

The European session today was focused on the fundamentals today rather than remain exclusively depicting the debt crisis developments and the outlook for Greece. Downbeat fundamentals generally fueled the worries across markets sending currencies and equities lower as the underlying macroeconomic status in Europe remains weak! Investors are still skeptic over the outlook and certainly they reflect the state of high uncertainty that lingers ahead which is quoted continuously by policy makers. The advanced PMI estimates from the euro area are compatible still with the state of mild recession and that is surely a key component that will affect the outlook for the monetary policy and also the debt crisis as the slower the growth status the deeper the debt crisis, it is all intertwined! With ...