Eur/gbp Parity The Parity

MORNING BRIEFING: No News is good News, or? What’s new: Asia: Awaiting news from Greece and potential spill-over effects. JPY offered on speculation that BoJ will add stimulus to boost growth. United States: Risk aversion moved flow from stocks to treasuries. 10yr generic fixed income futures in all-time highs at 133-27. USD weak on Friday. G8: Another round of talk, but no action on Greece. Europe: Slightly negative across the board in stocks. Only Spain managed to recover some of the losses, closing up 0.4%. EUR/USD re-visiting 1.28+ this morning. Rates in Asia and Indices: EUR/USD 1.2742 1.2813 -0.04 % USD/CHF 0.9375 0.9422 -0.07 % GBP/USD 1.5795 1.5839 -0.02 % USD/JPY 79.03 79.31 -0.34 % EUR/CHF 1.2010 ...

Dukascopy Fundamental Analysis EUR Stoxx Europe 600 index have dropped for third consecutive day and reached the lowest level since the start of this year as specialists speculate that elections in Greece could take place as early as 10 of June. The index lost 0.5% of its value by noon in London and around 10% from its peak this year in mid-March. USD Facebook increases the share offering by 25% to 421.2M shares to collect near $16B. At the offering's price of $34-$38 per share Facebook is rushing towards the largest technology IPO in the history. Production of utilities, mines and factory's in the U.S. surpassed expected 0.6% level and increased by 1.1% in April. GBP The number of unemployed people for January-March decreased to 2.63 million, 45,000 down on the quarter, the Office for ...

Citing a failure of the Congressional super committee to address the US deficit Fitch moved to change its outlook on US government debt to negative from stable. Economic News USD - Fitch Warns on US Credit Rating Yesterday Fitch warned on the US credit rating. Citing a failure of the Congressional super committee to address the US deficit Fitch moved to change its outlook on US government debt to negative from stable. Technically this means there is a chance of a ratings downgrade within the next two years. This puts Fitch on the same level with Moody's and one level above S&P who downgraded the US credit rating in August, igniting a storm in the financial markets. The move by S&P to lower the AAA rating of the US fueled sharp declines in equity markets and a rush to safe haven ...

www.sunbirdfx.com Last trading day in Wall Street has been characterized by much volatility. The leading indices have changed direction several times while it seems that the macro-data that reflected a rise of 4% in the orders of sustainable merchandises, as opposed to a prediction of only 2%, has tipped the scale towards a rally at the last minutes of the trade. Other news that have contributed to volatility are fears from negative developments related to the debt crisis in Europe, as opposed to cautious optimism from the investors following the speech of the President of the Federal Bank in the USA, Ben Barnanke, as well as the probability of declaration of a third quantity easing plan. In France, the Prime Minister Francois Fillon has announced a vast package of spending cuts in order ...

The Week Ahead Highlights * US jobs disappoint, but still in the right direction * Is Europe about to implode? * Queensland flooding slows down the Aussie * Encouraging jobs data and accelerating price gains supporting the Loonie * Key data and events to watch next week US jobs disappoint, but still in the right direction Dec. US job gains disappointed most observers, but that was mostly the result of heightened expectations following Wednesday's surge in the ADP report, a notoriously poor indicator of concurrent NFP changes. Still, that more jobs were created in Dec. represents another step forward for the US recovery, reinforcing the recent stream of better than expected US data. The decline in the US unemployment rate from 9.8% to 9.4% (exp. 9.7%) was also a step ...

FX Strategy Weekly Market Outlook => Pro-risk currencies unfazed by EU periphery troubles; focus on G20 => BoE QIR to test sterling resilience A quiet data and event calendar means the dust should settle somewhat over global asset markets over the coming week, allowing investors to catch their breath and consider what will influence financial markets over the closing weeks of 2010. Risk appetite received a shot in the arm from the $600bln Fed Treasury purchase programme and this largely managed to neutralise escalating fears over the euro zone periphery where bond and CDS spreads hit new record highs. Though long high yield and commodity currency positions already look stretched technically, attractive yield differentials and QE flows from US into non-US assets are likely to spur ...

FX Strategy Weekly Market Outlook => GBP: prel Q3 GDP to seal Nov MPC QE vote? => AUD vs CAD: correlation switches The preference of investors to buy USD/G10 on dips ahead of the G20 meeting following supportive comments by US Treas Sec Geithner indicates that the phase of USD weakness may at least be temporarily exhausted. Having said that, currencies remain in a state of flux and USD selling may well still be the preferred course of action if central bank discussions this weekend come to nothing and discord over external imbalances and exchange rate coordination remain subordinate to individual economic interests. However, with QE2 in the US now fully discounted and risk reversals showing demand for USD puts stalling, a widening in EU peripheral spreads and profit taking in risk ...

FX Strategy Weekly Market Outlook => USD priced for QE2 after Bernanke, pro-risk flows weigh => GBP: MPC minutes ahead, policy bias still neutral? Fed chairman Bernanke implicitly admitted in his Boston speech that the Fed was likely to push ahead with more QE on Nov 3 as risks of deflation are currently "higher than desirable". The limited scope for US short end yields to fall suggests that USD downside may now be limited. However, with QE2 now effectively priced in, the risk of a counter trend move cannot be ruled out, though a leveraging up of G10 and EM currencies threaten to squeeze the USD lower still backed by positive US Q3 company earnings and a rally in commodities. In general, a combination or reasonable US activity data and a Fed commitment to more accommodation should be ...

Commentary of the EUR/GBP parity: The parity is finding resistance on 0.88. The price fake a breakout of this level. All indicators are still bullish. The parity is moving into a bullish channel. We maintain to trade only long positions as far as 0.8775 (last lowest) is support. See the previous analysis of the EUR/GBP parity of October 13th, 2010