Dollar Jumps On Good

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 ...

Technical Analysis EUR/USD "Raising the size of the euro zone bailout fund will be supportive for the euro, although the market is already aware of it" - JP Morgan Private Bank (based on CNBC) Rally of EUR/USD is unlikely to appear on the chart on the occasion of the fact that a number of significant resistances are located in close proximity of the current price - 1.3379, 1.3435 and 1.3487. EUR/JPY "The worse-than-expected Tankan survey seems to be fueling talk that the BOJ will ease policy further" - Forecast Pte (based on Bloomberg) Despite a recent failure of EUR/JPY to overcome resistance at 111.57, the currency couple is anticipated to make another attempt to breach it. GBP/USD "The expectation from the OECD that the UK is about to fall into another recession makes quantitative ...

Dukascopy Fundamental Analysis EUR 17-nation currency advanced to one-month record high versus US Dollar on speculations EU finance ministers will support the increase of rescue funds. Euro climbed 0.4% against greenback to USD 1.3349 and was poised for third weekly gain. Common currency dropped 0.2% versus Yen to JPY 109.49. Currently EUR/USD is trading at USD 1.3356. USD China's imports from the US hit 100 billion US Dollars in 2011, reported US-China Business Council. The US exported goods and services worth 103.9 billion US Dollars to China last year, indicating a 542% increase over the 10-year period. China is the third largest importer of the US goods and services; however, the US plans to more than double its exports to China by 2014, said Barak Obama. GBP UK GfK consumer ...

The Canadian dollar jumped today as positive employment data from the United State boosted risk appetite among Forex traders and overshadowed poor employment report from Canada itself. Reports ahead of US non-farm payrolls provided a mixed picture about the US employment market as ADP employment report showed less-than-expected growth, while unemployment claims dropped more than was forecast. The payrolls came out today, supporting positive view on employment. US employers added 243,000 jobs in January, compared to the average forecast of 150,000. What’s more, the unemployment rate fell to 8.3 percent, while it was expected to stay at 8.5 percent. Canada’s jobs market wasn’t near as good as US one. Employment registered almost no growth in January, showing an increase by just 2,300 jobs, ...

Fundamental News: Today's highlight; BoJ Press Conference. (JP, 7:00, GMT) Core Retail Sales (MoM). (CAD, 13:30, GMT) BoE Gov King Speaks. (UK, 20:00, GMT) EUR/USD The EUR/USD is currently trading 1.3040, in a surprised show of strength today, the euro surged past the all important 1.30 level to reach a high of 1.3046 and has been able to sustain the 1.30 level. A boost in consumer confidence report filed today, a leading indicator that predicts consumer spending, and plays a major role in overall economic activity. Again, there have been promises of deal with creditors in Greece, but at this writing it is not clear if there is a deal or isn’t a deal, but the EU leadership seems to think that a deal is doable, has pushed the euro. Aided by a successful German bond sale, ...

Fundamental market overview EUR After LCH Clearnet SA increased deposit necessary for trading Italian bonds, 5-year bond yields jumped to 7.5%, exceeding those of 10-year bonds. PM Berlusconi's resignation offer left current government with tackling austerity measures in order to decrease costs of borrowing. USD HSBC Holdings Plc., Europe's biggest bank in terms of market value, reported a drop in profit of 53% or $1 bn in the 3rd quarter from previous year. Bad debt provisions for bank's US division climbed from $3.15 bn to $3.89bn. According to HSBC representatives, global economy faces challenges that hurt emerging markets, hinder growth and thereby reduce bank's profit. GBP UK GBP growth forecast was reduced today by business organisation CBI to 0.9% in 2011, 1.2% in 2012 and 1.3% ...

Morning Briefing : Euro recovers after Spain cut What's new: Forex: Euro steadies despite Spain’s rating cut Global Markets: US stocks higher after report that France, Germany agrees EFSF deal Euro zone: UK’ Guardian reports France & Germany agree to create a leveraged EFSF worth €2 trillion Spain: Moody’s downgrades Spain by 2 notches to A1 United Kingdom: Annual CPI jumps to 5.2%, highest since September 2008 Forex rates in Asia and Indices: EUR/USD: 1.3840 - 1.3725 USD/CHF: 0.9001 – 0.8950 GBP/USD: 1.5778 - 1.5695 USD/JPY: 76.84 – 76.66 EUR/CHF: 1.2418 – 1.2350 EUR/JPY: 106.23 – 105.33 DowJones: 11'577.05 +1.58% NASDAQ: 2'657.43 +1.63% S & P 500: 1'225.38 +2.04% Nikkei: 8’722.54 +0.35% Shanghai: 2’378.00 -0.23% Gold: $ 1'660.60 Crude Oil: $ 88.65 Comments: The euro recovered on ...

(Reuters) - European stock index futures fell on Friday, putting shares there firmly on course to post their biggest quarterly decline since the months following the collapse of Lehman Brothers three years ago. Asian equities also dropped, extending the worst monthly performance since the most volatile days of the global financial crisis in October 2008. Chinese shares racked up sharp losses amid fears of a property market correction. The euro fell and was on course for the biggest monthly drop in nearly a year, with German parliamentary approvals of new powers for Europe's bailout fund having little lasting impact. "The euro weakened as strong selling by Japanese exporters emerged but frankly, looking at the recent volatility, a dip like that is still not hugely important," said Teppei ...

Today, traders should pay close attention to the release of the U.S. Pending Home Sales report. This indicator always provides for extreme market volatility in the major currency pairs. Traders may find good opportunities to enter the market following this vital announcement at 14:00 GMT. Economic News USD - Dollar Drops on Renewed Risk Appetite The U.S dollar drifted lower against most of its major currencie on Wednesday as riskier assets remained vulnerable to doubts over the ability of European policy makers to stem a debt crisis that threatens to trigger a global recession. By yesterday's close, the USD fell against the EUR, pushing the oft-traded currency pair to 1.3650. The Dollar experienced similar behavior against the CAD and closed at 1.0230. Investors may look for the ...