Expected Trading Ranges

With the lack of market thrillers, risky assets rebound on a normal pullback after the recent savage selloff looking with an eye of hope towards the world’s leaders meeting (G8) today. Markets woke up on sharp selloff with the start of the trading session, where majors printed new lows against the greenback before rebounding. The EUR/USD reached 1.2640 just above 2012 low at 1.2621, currently baring earlier losses trading around 1.2713. Stochastic has provided an early sign of recovery in the form of a bullish divergence and currently regaining the bullish momentum. However the upside remains limited as markets jitters are far from over. Thus 1.2660 should form an intraday ceiling today, as trading ranges will get thinner approaching the weekend. The British pounds rebounded sharply ...

(Reuters) - Copper futures rose on Thursday, bouncing off the previous session's three-week lows as some Chinese investors took advantage of the dip in prices to cover short positions and restock. While China's import and export growth came in surprisingly weak, raising doubts about growth prospects for the world's second-biggest economy, other data due this week may ease fears as they will likely show the economy has bottomed out as inflation slows and output picks up. Meanwhile, trouble in the euro zone is expected to keep gains capped. Spain's efforts to clean up indebted lender Bankia by taking a stake in it only underlined fresh fears over the country's debts. Greece's failure to form a coalition government also stirred fears of it backing away from austerity measures. Three-month ...

Markets focus to see whether the ECB paves the way for further easing Economic Data (RU) Russia Gold & Forex Reserve w/e Apr 27th: $523.3B v $519.5B prior (IN) India Apr Markit Services PMI: 52.8 v 52.3 prior (UK) Apr Nationwide House Prices M/M: -0.2% v +0.5%e; Y/Y: -0.9% v -0.3%e (IE) Ireland Apr NCB Services PMI: 52.2 v 52.1 prior (CH) Swiss Q1 UBS Real Estate Bubble Index: 0.95 v 0.80 prior (HU) Hungary Feb Final Trade Balance: €691.2M v €690.1M prelim (TR) Turkey Apr Consumer Prices M/M: 1.5% v 1.4%e; Y/Y: 11.1% v 11.0%e; Core CPI Y/Y: 0.1% v 7.9% prior (TR) Turkey Apr Producer Prices M/M: 0.1 v 0.4% prior; Y/Y: 7.7% v 8.2% prior (BR) Brazil Apr FIPE CPI: 0.5% v 0.2% prior (UK) Apr PMI Services: 53.3 v 54.1e (HK) Hong Kong Mar Retail Sales Value Y/Y: 17.3% v 14.0%e; Retail Sales ...

(Reuters) - The euro weakened against the dollar on Monday and was on track for its worst month since December, pressured by nagging euro zone stresses as German retail sales were softer than expected and Spain slipped into recession. Investors were also wary of buying euros before weekend elections in France and Greece and a European Central Bank (ECB) meeting later in the week that could knock sentiment in the single currency. "There is clear risk aversion in the market," said Boris Schlossberg, director of FX research at GFT in Jersey City, New Jersey, citing data showing Spain's slide into recession and the weaker-than-expected German data. "In short, the news from Europe continues to point to further structural stress in the system." The euro failed to gain traction versus the ...

(Reuters) - Oil slipped on Friday in tug-of-war trading after an initial estimate of U.S. first-quarter economic growth data lagged expectations, but losses were limited by hopes for additional easing by the Federal Reserve to boost sputtering U.S. growth. Both Brent and U.S. crude headed for a small weekly gain and traded in relatively narrow ranges as the dollar's weakness and a rise in U.S. consumer sentiment also provided support. Oil fell after ratings agency S&P downgraded Spain's credit rating, but pared losses ahead of the U.S. GDP figures. "Bad news for the economy is being interpreted as good news for commodities because it may put QE3 back on the table," said Dominick Chirichella, senior partner at Energy Management Institute in New York. "Whether or not that trade has any ...

(Reuters) - Copper prices rose on Thursday to their highest levels in more than two weeks, overlooking a slight retreat in the euro versus the dollar and climbing with global equities on the back of the U.S. Federal Reserve's commitment to support growth. Copper extended gains from the previous session during which the U.S. Federal Reserve forecast U.S. growth to "remain moderate over coming quarters and then pick up gradually," and said it was ready to launch another round of bond buying if the U.S. economy weakens. Disappointing U.S. jobless claims data seemed to muddy the Fed's bullish growth outlook, but traders said the central bank's more accommodative tone will likely help to keep a floor under prices of copper and other risk assets. "The data has been a little bit softer lately, ...

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 euro ground higher against the dollar and the yen on Monday, recovering from stumbles earlier in the session as the effects of disappointing U.S. jobs data last week faded, although thin holiday trading exacerbated moves. Data on U.S. jobs creation came in sharply lower than expected on Friday, when stock markets were closed and bond markets closed early. While foreign exchange markets were open, the Good Friday holiday had made for particularly light volume. "There's maybe a bit of a soft tone in the dollar on the jobs report," said Mark McCormick, a G-10 currency strategist with Brown Brothers Harriman. But, he cautioned, "price action has been pretty muted." With many European markets still closed on Monday - including London, a major currency trading hub - analysts said the ...

Fundamental Analysis EUR "The results are a far cry from the blowout auctions we saw between December and February, which will no doubt be interpreted as the LTRO bid having dried up" - Peter Chatwell, Interest Rate Strategist at Credit Agricole in LondonSpain’s cost of borrowing surged after the first auction since the country presented its austerity budget. Yields on 10-year sovereign bonds soared by 11 basis points to 5.52%. USD "I would have to see some pretty severe circumstances before I endorse for another round of quantitative easing" - Dennis Lockhart, Atlanta Fed President Federal Reserve policymakers believe that improving US economy reduces the need for further monetary accommodation, with reference to minutes of the central bank’s March meeting. GBP "The last five years ...