Falls On Disappointing News

A disappointing US jobs report resulted in the safe-haven US dollar sliding against the Japanese yen while rallying against riskier currencies like the AUD and EUR to close out last week's trading session. Turning to today, elections held in France and Greece over the weekend are forecasted to generate significant market volatility. Any indication that Greece could back away from recent austerity measures as a result of the election could result in the euro extending its current bearish trend. Economic News USD - US Jobs Report Causes USD/JPY to Tumble Last Friday's US Non-Farm Payrolls figure came in at 115K, well below the forecasted 173K. The news represented the third month in a row of declining hiring in the US, and resulted in renewed speculation that the Fed may initiate a new ...

A batch of negative euro-zone economic indicators, including a worse than expected manufacturing PMI, drove the EUR/USD to its lowest level in over a week during trading yesterday. The news also resulted in the euro dropping over 140 pips against the yen during the European session. Turning to today, European news is forecasted to generate significant market volatility. Traders will want to pay attention to the results of a Spanish debt auction, as well as to the ECB Press Conference at 12:30 GMT. Should any of the news signal further troubles regarding the euro-zone economic recovery, the common currency could drop further before markets close for the week. Economic News USD - ADP Employment Figure Leads to Dollar Losses The US dollar fell vs. the safe-haven JPY throughout European ...

(Reuters) - Oil pared lossed on Friday to trade at around $119.90 a barrel after disappointing U.S. data revived hopes of further liquidity injections from the Federal Reserve to boost the flagging economic recovery. Brent crude, widely used as a global oil benchmark, was down just 5 cents to $119.87 a barrel by 1341 GMT. U.S. crude oil was off 7 cents to $104.48 a barrel. Oil was sold off earlier in the session after S&P downgraded Spain's credit rating but pared losses when U.S. first quarter GDP figures missed the consensus forecast. The data hit the dollar, and a weaker U.S. currency is supportive of commodities priced in dollars as it makes them cheaper for holders of other currencies. Some traders also took the view that the below-expectations GDP figure would open the door to a ...

Sunrise Market Commentary Fixed Income: core bonds remain near contract highs Global core bonds reversed Tuesday's losses in a rather uneventful session. Today, all attention will go to the Spanish bond auction. A weak auction two weeks ago put pressure on Spanish yields since. The 10-yr yield flirts with the psychological 6% mark. In order to avoid more tensions, failure today is not an option. Currencies Sterling leaps higher on less dovish BoE Minutes While EUR/USD trading was rather uneventful, sterling was the star performer. Helped by less dovish BoE Minutes and a stronger labour market report, sterling shot higher pushing EUR/GBP below key support and GBP/USD above 1.60. The Sunrise Headlines US Equities dropped slightly lower on Wednesday, giving back part of ...

(Reuters) - Spain's debt yields broke above 6 percent on Monday as investors worried about its budget, knocking the euro and sending safe-haven German bonds to a record last set at the height of the euro zone crisis. Signs of slowing global growth also undermined sentiment in commodity markets while European equity markets were mostly in positive territory after sharp falls last week. Spanish stocks were lower, however, reflecting concerns about the country's ability to finance its deficit and debt with borrowing costs on the rise. "We're back in full crisis mode," Rabobank strategist Lyn Graham-Taylor said. "It is looking more and more likely that Spain is going to have some form of a bailout." Mixed signals from the European Central Bank (ECB) over its willingness to help the market ...

Fundamental News Today’s highlights; •GDP (QoQ) (GB, 08:30 GMT) •French GDP (QoQ) (FRA, 05:30 GMT) •German CPI (MoM) (GER, Tentative) •Core Durable Goods Orders (MoM) (U.S, 12:30 GMT) After reporting a substantial improvement in U.S. consumer confidence for the month of February, the Conference Board said its consumer confidence index fell to 70.2 in March from an upwardly revised 71.6 in February. In addition, Home prices in major U.S. metropolitan areas showed a continued decrease in the month of January, according to a report released by Standard & Poor's on Tuesday, The report showed that the S&P/Case-Shiller 20-City Composite Home Price Index fell by an annual rate of 3.8 percent in January. Bank of Japan board member Ryuzo Miyao said Wednesday that the recent pullback in yen ...

5 Key Themes For Next Week - Risk, Chinese Equities, Copper, Periphery Yields, German and US Data This week was mainly characterized by a shift in sentiment as we went from generally mild risk positive tone to one in which investors showed renewed worries around global growth expectations with data from China and Europe disappointing. The result was a flight from higher yielding commodity linked currencies like the AUD and NZD - which are closely linked to demand from China - and then the CAD as it posted a much weaker retail sales report which undermined the fundamental picture for that economy. The key benefactor was the JPY which manged to pare some of the gains seen by commodity currencies during March. But the USD, EUR, and GBP all strengthened against the commodity currencies as ...

Forex News and Events: In yesterday's ECB meeting, the ECB president did not even mention the subject of rate cuts but did highlight inflationary pressures. Suggesting to us and the market that rates will stay at 1.00% for the rest of the year. The 2012 inflation midpoint forecast was increased to 2.4% y/y from 2.0% y/y previously, higher than the central banks mid target of 2.0%. The 2012 growth forecast was revised lower to -0.1% y/y from +0.3% y/y previously. Risk appetite held firm for most of the Asian session until the much anticipated results of the bond swap offer were announced. Reuters reported that Greece announced that 85.8% of bondholders (€172bn tendered in swap ) have accepted the offer. "I wish to express my appreciation to all of our creditors who have supported our ...

Fundamental Analysis EUR European economy declined in the 4th quarter of 2011 as investment fell most since 2009 amid dropping consumer spending and exports. GDP both in Euro Zone and EU 27 area fell 0.3% compared to 3rd quarter said EU statistics office on Tuesday. Exports contracted 0.4% compared to a 1.4% gain in the 3rd quarter. Investment faded 0.7% and household spending diminished 0.4%. USD Several US leading banks attempt to persuade Fed to restrict the amount of information it discloses to public when it reports the outcome of recent stress tests. Federal Reserve is preparing to disclose more details than it did in 2009. The Clearing House Association said in a letter to Fed that unveiling extra information may have a negative effect on financial institutions involved in ...