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Market Expectation The EuroTitle:
Dukascopy Morning Forex Overview : 01/08/2011
Previous session overview
A framework agreement in the long-running debt ceiling battle in Washington sent the dollar up briefly against the yen Monday morning in Asia, but the greenback's gains faded on continued concern over a possible U.S. sovereign downgrade and further economic softening.
The dollar's failure to hold its gains Monday came also as investors had already priced in expectations for default to be averted.
At 0450 GMT, the dollar was at JPY77.55, up from JPY76.78 late Friday in New York, but down from the high it hit at JPY78.05 after the deal was announced.
The euro was at JPY111.58 compared with JPY110.05, and at USD1.4389 from USD1.4391.
The ICE Dollar Index was at 73.855 from 73.750.
The Australian dollar edged higher Monday as U.S. President Barack Obama ...
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European Week: ECB & BoE decisions amid slowing growth and rising debt woes
The cycle continues and the jitters are only extending. He we are starting a new month and further economic softness has been reported into the third quarter and this week the focus will again be on central banks for any guidance amid this rough economic period.
This week, the focus will turn to the BoE and the ECB as both central banks are expected to keep their monetary policies unchanged, yet investors eye more details amid the intense financial market tension and rising uncertainty over the outlook.
Markets have been dominated by debt jitters in the past period and the pressures are only rising with the United States now suffering from their own debt dilemma extending the rout from the euro area’s crisis.
With the worsening outlook for the global recovery and also the pace of ...
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Jitters dominate markets on U.S. debt ceiling increase indecision
Jitters dominate markets on U.S. debt ceiling increase indecision, rating agencies continue to downgrade euro area debt-laden nations
After the announcement of a second bailout for Greece in addition to other measures to contain the spread of debt contagion to other highly indebted nation in the region using the euro in the week ended July 22, markets went on the rampage once again but this time due to the delay of decision among U.S. policy makers to raise debt ceiling before an August 2 deadline.
Indeed, the second bailout managed to restore confidence in financial markets and ease the jittery vibes that dominated the market before the announcement of the aid package, yet the wave of optimism did not last long as worries over U.S. debt-limit increase.
As the U.S. now face the risk of ...
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Risks Remain High Amid Debt and Growth Concerns
The Week Ahead
Highlights
Risks remain high amid debt and growth concerns
Cracks appear in the EU debt deal
UK's growth picture not as bleak as expected
Asia/Pacific FX - Rising inflation in Oceania and rising intervention risks in Japan
Key data and events to watch next week
Risks remain high amid debt and growth concerns
Uncertainty remained elevated and markets were on edge as debt problems on both sides of the Atlantic dominated headlines. Safe havens such as the JPY, CHF, and gold were beneficiaries amid market jitters. The Swiss franc reached new record highs gaining over 4% this week against the greenback and roughly 3.73% against the euro at the time of writing. In Europe, peripheral yields moved higher as the euphoria over the previous week's EU summit wore ...
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Weekly Economic and Financial Commentary : 29/07/2011
Weekly Economic and Financial Commentary
U.S. Review
Subpar Economic Growth Defines the Second Quarter
The economy grew at a sluggish 1.3 percent in the second quarter after growing a mere 0.4 percent in the first quarter. Stagnation in personal consumption expenditures in the second quarter suggests that higher prices played a role in restraining consumer spending.
Consumer confidence unexpectedly rose in July as the number of people expecting conditions to improve six months from now climbed on the month.
Data on the housing market this week continued to reflect the weakness in the housing sector.
Subpar Economic Growth Defines the Second Quarter
This week we learned that the U.S. economy grew a sluggish 1.3 percent in the second quarter of the year after expanding only 0. ...
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The Weekly Bottom Line : 29/07/2011
The Weekly Bottom Line
HIGHLIGHTS OF THE WEEK
United States
Another week has gone by and U.S. lawmakers have yet to reach a deal to raise the statutory debt ceiling. The U.S. government is just three days away from exhausting its authority to borrow.
If there is no progress over the weekend, the U.S. Treasury will have to give further details on a contingency plan for how it would to deal with its funding shortage.
As if all of these was not enough bad news, this morning real U.S. GDP came out well below expectations, with an annualized quarterly expansion of 1.3% in the second quarter. Furthermore, first quarter growth was revised down sharply from 1.9% to 0.4%. This is a stark reminder of the weakness of the U.S. economy.
Canada
With investors moving towards "safe" ...
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Gold hits record on weak U.S. growth, debt woes
(Reuters) - Gold hit another all-time high on Friday as investors sought a safe haven, after anemic U.S. growth data raised the prospect of recession if a deadlock over Washington's debt fails to be resolved quickly.
Gold volatility climbed as President Barack Obama told U.S. lawmakers a deficit-reduction plan being advanced by the top Republican in Congress would be defeated in the Democratic-led Senate. The metal could tumble if a debt-ceiling deal eases fears in other financial markets, analysts said.
Bullion hit its third record in five days, set to rise around 9 percent for July, after Friday's GDP data showed the U.S. economy stumbled badly in the first half of 2011 and came dangerously close to contracting in the January-March period.
"The weak economic data suggests that you may ...
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Dollar sinks vs Swiss franc, yen on data, debt woes
(Reuters) - The dollar plunged to all-time lows against the Swiss franc and four-month troughs versus the yen on Friday as data showing lackluster U.S. growth and debt worries on both sides of the Atlantic prompted investors to seek refuge in traditional safe havens.
The greenback, however, gained against commodity-linked currencies such as the Australian, Canadian and New Zealand dollars, which typically struggle when there is heightened risk aversion.
Gains in the dollar, Swiss franc and yen accelerated after data was released showing the U.S. economy grew at a 1.3 percent annual rate in the second quarter, well below the expected 1.8 percent pace. First-quarter growth was also revised sharply lower, to 0.3 percent from 1.9 percent.
"Today's disappointing U.S. GDP data confirms what ...
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Dollar, euro underperform safe havens on debt concerns
(Reuters) - The dollar fell to a four-month low against the yen and hovered near record lows versus the Swiss franc on Friday, while the euro came under fresh pressure as debt jitters on both sides of the Atlantic drove edgy investors toward safe-haven currencies.
U.S. authorities appeared as ever from reaching a cross-party compromise to raise the debt ceiling, while euro zone concerns grew on talk Greece might miss its next loan tranche payment and a Moody's warning that it might downgrade Spain.
Widespread worries about sovereign debt underpinned safe haven assets and were expected to keep growth-linked currencies, including the Australian and New Zealand dollars, subdued.
The dollar was down 0.3 percent against the yen at 77.54 yen, having fallen to a four-month low of 77.448 on ...
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