Reaction In Terms Of Confidence

Forex News and Events: Risk appetite has recovery marginally in the Asian session as the lack of Europe-negative headlines allowed risk seekers to pick up bargains. EURUSD was able to rally off the 1.2519 lows trading up to 1.2579. One of the more tangible drivers of today’s renewed positive sentiment has been the optimistic tone out of the Iran nuclear talks. A spokesman for EU foreign policy chief Catherine Ashton, stated "there is a positive atmosphere.” Oil went bid in the European session as WTI traded swiftly to $91.31. Yesterday’s move of the day was in the EURCHF where speculation on exactly what happened is still dominating conversation. After a month of inactivity around the 1.2010 level (vols compressed to nothing), EURCHF jumped suddenly over 60 pips during the European ...

Sunrise Market Commentary - Fixed Income: Largely uneventful session for core bonds - Core bonds had an insignificant, technical and sentiment-driven session that left bond yields slightly higher in the close. Overnight, negative headline news on JP Morgan and Greece triggered a moderately strong opening of the Bund. Europe will be in the focus today with the publication of the Spanish banking plan and the EU spring forecasts. - Currencies: EUR/GBP testing 80.00 barrier, as BoE stops printing press - On Thursday, sentiment on risk turned slightly less negative, even without progress in the Greek debt/election crisis. Nevertheless, the decline in EUR/USD slowed. EUR/GBP reached a minor low just below 0.8000 as the BoE halted its program of asset purchases. For now, we see no ...

Forex News and Events: Worries over Europe resurfaced yesterday as weak data, uncertain political environment and questionable support from the IMF all highlighted potential weak spots. The additional $430bn from the IMF fell short of the whispered $600bn that had circulated around the market and the additional funds came with heavy caveats that these funds were not guaranteed to go to Europe. So the lingering questions is under what conditions they might be pointed towards Europe. Meanwhile, the first release of euro-zone budget deficit and government debt figures for 2011 exposed a couple of interesting notes. First the euro-zone budget deficit dropped to 4.1% of GDP from 6.2% in 2010 but this decrease was not enough to stop government debt from climbing to 87.2% from 85.3%. Composite ...

Sunrise Market Commentary Fixed Income: Core global bonds remain well bid, but fail to profit from weak data While the Bund set a new contract high, the price action showed little momentum. Rumours about a French rating downgrade gave core bonds a shot in the arm, but subsequent weak eco data were largely ignored, triggering some profit taking in late US session. Currencies: Break lower in EUR/GBP confirmed Also in EUR/USD rather dull session leaving the pair little changed in the close. Intra-day decline on French rating rumours was later on reversed. Upcoming IMF meeting, French presidential elections and FOMC meeting might keep investors sidelined today. The Sunrise Headlines US Equities dropped for a second straight session on Thursday. The S&P fell 0.59% as weak ...

Forex News and Events: This event laden week started out with a bang. China's official manufacturing PMI released over the weekend printed at 53.1 vs. 50.8, significantly outpacing consensus opinion. The number provided markets a sense of relief as there has been lingering concerns over the prospect of a hard landing. While this single print does not end the debate, it does give reason for optimism. That said there is the fear that seasonality skewed the result as the HSBC flash PMI released over a week ago was considerably softer. From Europe, data continues to show divergent economic paths between nations and an overarching worrying trend in unemployment. The string of PMI manufacturing from Euro zone members remained under the 50 threshold, with Germany, Italy and France showing ...

Forex News and Events: FX market pulled back on the "risk-on" trades last week as PMI reads from China and Europe indicated the fragile recovery was still unbalanced. And we have seem to pick up this week right where we have left off. While the numbers were slightly worse than expected, there seemed a slight over reaction due to the lack of other news. While we wouldn't completely discount the erosion in outlook, we suspect that as markets become used to a bouncy economic recovery, strong data followed by weak, the risk rally should continue (ie not panic every time a soft number prints). That said, these numbers further suggest that there is more trouble brewing in Europe. A weak PMI in the US or China is completely different than one in Europe. The Eurozone objective is not just trying ...

(Reuters) - The bond market has repeatedly resisted threats to its three-decade rally, but a big selloff this week may be an early sign that the bull market in Treasuries is truly coming to a end. The biggest weekly decline in prices since last summer, which pushed yields to their highest level in more than four months, has caught banks, bond dealers, pension funds and other investors flat-footed. The rout prompted investment bank UBS to declare the start of a long bear market and even prominent investor, and one-time bond bull, Jeffrey Gundlach says yields will rise further. What has investors questioning the bond market's ability to sustain super-low bond yields is the steady improvement in U.S. economic data that has buoyed the stock market to four-year highs. It means the flight to ...

Forex News and Events: It’s been a very quiet day as traders await news surrounding the European crisis. Yesterday German parliament backed the second Greek bailout in a 496-90 vote, despite growing pressure from voters to step away from the deal. However, the vote did not go completely smooth as the debate was lively. Interestingly, Merkel tried to protected herself from potential backlash should the bailout go poorly, by stating that there was 100% guarantee of success with the new program. In addition, she seemed to steer clear of the topic of a greater “firewall” so omnipresent in this weekend’s G20 meeting comments. This vote clears the way for Merkel to negotiate the final deal at the end of the weeks EU summit in Brussels. In other news the S&P downgraded Greece to 'selective ...

(Reuters) - The euro steadied after an initial jump and European stocks eased on Tuesday after a long-awaited agreement on a second bailout for Greece removed the threat of a disorderly bond default but left markets fearing further problems ahead. Stock index futures pointed to a rise in U.S. equities when the markets reopen after the Presidents Day holiday, with eyes on the Dow Jones index .DJI which is close to breaking through 13,000, a level it hasn't seen since May 2008. After 13 hours of talks, euro zone ministers finalized a 130-billion-euro ($172 billion) deal for Greece by forcing Athens to commit to unpopular budget cutbacks and private bondholders to accept deeper losses, ensuring it can meet a debt repayment due next month. The euro initially jumped over half a cent against ...