Eur/usd
So far throughout the US session and close to the closure of the U.S local stock market we watch the dollar remaining faintly strong and still rising against most major peers as Federal Reserve Chairman Ben S. Bernanke said that the central bank may taper monthly bond purchases at its next few meetings if it’s confident of sustained gains in the economy.
As a result the euro fell 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 $1.2856 while recording the highest level of $1.2996 and lowest level of $1.2832, knowing that the pair may start to rise as shown on the four-hour momentum indicators.
As for the British Pound, ...
Sunrise Market Commentary
- Rates: Core bonds rebound on technical levels and dovish Fed Bullard
- In a session devoid of key eco releases, core bonds initially continued to move South, approaching key support levels in the US session. Afterwards, dovish comments of Fed Bullard triggered short covering as investors also eyed today's testimony of Bernanke.
- Currencies: Soft Fed speak triggers USD profit taking
- EUR/USD initially drifted south in technical trading yesterday. At the end of the day, soft comments from Fed Bullard pushed EUR/USD north of the 1.29 mark. Sterling was hit as a sharper than expected decline in inflation made markets think that there is still room of maneuver for the incoming BoE governor. EUR/GBP is trading north of 0.8500.
The Sunrise Headlines
...
Fundamental Analysis
EUR
"The financial markets appear to have survived the government debt crisis, but the leading economic indicators have recently declined."
- Joerg Kraemer, Chief Economist at Commerzbank AG
Producer prices in Europe’s largest economy slowed for the third consecutive month in April, suggesting weak domestic demand and raising concerns that the economy is far away from the recovery. The measure of producer prices for industrial products inched up only 0.1% from the corresponding month of the prior year.
Read more: FULL REPORT - Fundamental Analysis
Technical Analysis
EUR/USD
"Bernanke isn’t hawkish, so I think he’s more likely to continue monetary easing. The market will probably respond with dollar-selling to Bernanke’s remarks."
- Gaitame.com Research Institute ...
Morning Briefing : Eyeing the US dollar ahead of key events today
What's new :
Asia: Equity indices mixed this morning
Japan: BoJ left rates unchanged in line with expectations
Forex: Aussie and Kiwi continue to tumble
Overnight rates and Indices:
EUR/USD 1.2903 1.2939 0.16 %
USD/CHF 0.9681 0.9715 0.07 %
GBP/USD 1.5138 1.5174 -0.04 %
USD/JPY 102.35 102.74 -0.11 %
EUR/CHF 1.2515 1.25426 -0.07 %
EUR/JPY 132.22 132.69 -0.28 %
Dow Jones 15325.68 15434.50 0.34 %
Nasdaq 3011.51 3036.71 0.18 %
S&P 500 1662.67 1674.93 0.17 %
Nikkei 225 15432.64 15706.63 1.60 %
Shanghai 2292.43 2314.18 -0.18 %
Gold spot 1372.47 1389.16 0.78 %
Crude Oil 95.51 95.97 -0.27 %
Comments:
All eyes on the ...
For the 24 hours to 23:00 GMT, EUR rose 0.23% against the USD and closed at 1.2920, as investors risk sentiment improved, after two voting members of the Federal Open Market Committee (FOMC) eased concerns about the US central bank paring back its asset purchase program.
St. Louis Fed President, James Bullard stated that the low level of inflation will prevent the Fed from tapering the bond-buying program, while the New York Fed President, William Dudley opined the uncertain economic outlook makes it difficult to tell if the central bank increases or decreases the pace of asset purchases.
Moreover, the Bundesbank in its monthly report indicated that Germany avoided recession in the first quarter, citing a rise in private consumption. It further stated that it expects a further ...
- Forex Technical Analysis : 05/22/2013 -
(Timeframes: 30 minutes)
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Crude Oil Technical Analysis
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 ...
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 ...
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 ...