Current
Throughout the US session the green Benjamin gains back some strength but slightly as a result of technical movements after that it lost appeal and fell versus the euro earlier throughout the prior session after Federal Reserve Bank of St. Louis President James Bullard said policy makers should keep buying bonds as the best available option to boost slower-than-forecast growth.
As a result the euro fell faintly against the dollar and remains on plunging slightly to the downside on the four and one-hour charts as a result of the current technical movements and strengthened dollar sending in fact the EUR/USD pair to trade around $1.2906 while recording the highest level of $1.2932 and lowest level of $1.2840, knowing that the pair may start to rise as shown on the four-hour momentum ...
The British pound resumed its drop against majors after the slower than predicted drop in U.K. inflation, ahead of the release of important data later in the week.
The sterling led the decline on Tuesday trading as it plunged after a report showing U.K. CPI for the year ended April dropped to 2.4%, the lowest level in seven months, from a prior of 2.8%, lower than median forecasts of 2.6%.
The faster than expected deceleration in prices raised speculations the BOE may rethink about expanding stimulus to bolster the nascent recovery, thereby putting downside pressure on the pound.
Eyes will focus on BOE minutes for May’s monetary decision, as well as retail sales and public finance data for April due tomorrow, while on Thursday the first-quarter GDP will show whether there was any ...
Mario Monti, Italy`s outgoing prime minister, said another election is unlikely to be called in the next six months, although tensions have been simmering between political rivals in the country`s nascent coalition government.
It`s been less than one month since new PM Enrico Letta was assigned to end political paralysis and form a broad coalition government able to pull Italy out of its worst recession since World War II. Serios policy issues aren`t solved, however.
Monti believes government policy of Italy is undergoing a "remarkable" continuity, signaling that the country will not have inversion or break in policy trend. But the truth is that the coalition faces wide and unsolved differences over tax policy.
The new government, backed primarily by Letta`s center-left and the center- ...
Is The Dollar To Be Given A Bull Run Break Before Ben?
The market yesterday was a write-off in terms of price action, as a few sovereign nations managed to squeeze in a national holiday in parts of Europe and in Canada. This week's US fundamental highlight will be delivered tomorrow - the FOMC Minutes from the May 1st meeting and helicopter Ben's testimony on the Economic Outlook and Monetary Policy before the Joint Economic Committee, in Washington. On the whole, market price actions over the past few-days indicate that a few investors are becoming a tad nervous ahead of Ben's speech.
Some investors are anticipating that the release of Wednesday's FOMC minutes will indicate that both the Fed's 'hawks and doves' are beginning to become "increasingly uncomfortable with the current $85- ...
The royal pound fell to a six-week low against the dollar on Tuesday after data showed U.K. inflation slowed more than economists forecast in April, before of the Bank of England releases minutes of its May meeting on Wednesday.
U.K. inflation retreated to 2.4 percent in April, the lowest level in seven months, coming back near the bank’s target. Pond drops versus dollar on speculations of further stimulus.
The GBPUSD pair slumped on Tuesday to trade around $1.5163 after opening at $1.55252 while recording the highest level of $1.5272 and lowest of $1.5154. The trading range for this week is among key support at 1.5100 and key resistance at 1.5385.
Dollar
The dollar edged up on Tuesday after weakening in the previous session as Moody’s Investors Service said yesterday that U.S. policy ...
European Market Update
UK inflation comes in lower than expected and offers BOE more room to stimulate if data does disappoint
Notes/Observations
RBA minutes: rate cut appropriate to boost growth; subdues growth & inflation provided room to cut rates; AUD high by historical standards
The USD/JPY was steady after the Japanese Econ Min Amari backed off from his comments expressing satisfaction with the current value of the JPY
Germany's Chancellor Merkel said to be considering certain treaty changes aimed at giving more powers to Brussels
Draft EU law to protect insured bank depositors under €100k; larger depositors could suffer losses after equity and bond holders hit
UK inflation comes in lower than expected and offers BOE more room to stimulate if data does disappoint
Thursday ...
Forex News and Events:
The FX markets remain on hold ahead of FOMC Chair Bernanke’s testimony due tomorrow. Over the past two weeks, the speculations on Fed’s tapering of bond purchases have been the key topic across all major currencies. Today, the USD weakness is in game due to position adjustments before hearing what Bernanke has to say.
Released this morning, the UK inflation in April greatly surprised to the downside. Cable registered a decent sell-off on the speculation for more QE to boost the growth, while Euro remains highly reactive to data/news out of US and UK.
Bernanke to Remain Dovish
The key topic across the major currency markets over the past two weeks has clearly been the specs on hawkish Fed and early tapering of asset purchases. However, last week’s US data put some ...
U.K. inflation retreated to 2.4% in April., the lowest level in seven months, coming back near the bank’s target, while pound drops versus dollar on expected further calls for stimulus expansion.
Today`s data showed that CPI for the year ended April slipped to 2.4% after steadying at 2.8% over the prior couple of months, lower than median forecasts of 2.6%, taking advantage of a 0.3% drop in transport cost which was dragged down by the drop in gasoline.
On the monthly basis, the reading showed 0.2% rise from 0.3% advance in March.
Annual Core CPI, which excludes alcohol, food, tobacco and energy prices, slowed to 2.0% from 2.3%.
The BOE’s inflation report release last week showed a cut in the bank’s inflation forecast as it mentioned that inflation may come back to target earlier ...
Title:
Dollar Off The Recent Top
Sunrise Market Commentary
- Rates: US Treasuries end quiet session nearly unchanged.
- In a typical Monday session devoid of eco data or main events, US Treasuries closed little changed. An initial rally that attempted to recoup Friday's losses was reversed when US equities rallied. Both ended the session nearly unchanged. Interesting comments on QE by Fed Evans in late trading pushed Treasuries slightly lower.
- Currencies: Dollar off the recent top
- The focus of currency markets is on the Fed's exit debate. The dollar is losing some ground as markets anticipate that Fed Bernanke will keep the current Fed approach when he speaks on Wednesday. EUR/GBP is holding a tight sideways range going into this week's UK eco data.
The Sunrise Headlines
- US equities ended ...