Said Speculative Yen

The Week Ahead ■The Bank of England's next move ■Is this the beginning of the end for the Eurozone? ■Fed officials reluctant to signal more easing ■Broader risk environment outweighs Japanese rhetoric The Bank of England's next move The BOE kept rates on hold when it concluded its May meeting last week; it also allowed the asset purchase program to come to an end. Since the UK slipped back into recession in Q1 2012 and the growth figures at the start of the second quarter have continued to look weak, the decision to hold interest rates was mostly down to the sticky outlook for inflation. The attention now turns to Wednesday's Inflation Report. The focus will be on the Bank's growth and inflation forecasts. The growth forecasts are likely to be revised lower. Even ...

(Reuters) - The euro fell close to a recent three-month low on Wednesday, on worries that political uncertainty in Greece and a French leadership change may undermine austerity plans key to tackling the euro zone's debt crisis. The euro remained under pressure after the leader of Greece's Left Coalition party said on Tuesday that the country's commitment to a European Union/International Monetary Fund rescue deal had become null and void. Greece's two main pro-bailout parties failed to win a majority in weekend elections, leaving questions over the country's ability to avert bankruptcy and stay in the euro. "One issue is whether this will cause investors to shun risk globally, or be viewed as the euro's problem alone and just lead to weakness in the euro," said Koji Fukaya, director of ...

Fundamental News Today’s highlights: · ECB President Draghi Speaks (EUR, 13:30 GMT) · FOMC Member Fisher Speaks (U.S., 16:15 GMT) · Housing Starts (CAD, 13:15 GMT) Consumer borrowing in the U.S. surged in March by the most in more than a decade on growing demand for educational financing and autos. Credit rose by $21.4 billion, the biggest gain since November 2001, to $2.54 trillion, Federal Reserve figures showed today in Washington. The advance was paced by a $16.2 billion jump in non-revolving debt, including student and car loans. Australia’s trade deficit was at A$1.587 billion in March, the Australian Bureau of Statistics said on Tuesday. That missed forecasts for a shortfall of A$1.4 billion after showing a deficit of A$754 million in February. Exports ...

USD is trading mixed against the majors - weaker against the commodity currencies (CAD, AUD, NOK, NZD) and stronger against most European FX. Uncertainty arising from elections in Europe saw an increase in risk aversion which is seeing UST yields lower. The decline in Treasury yields is also a result of Fed policy expectations as hopes for QE3 are supported following Friday's weak employment report. Despite the option of QE3 being on the table, we maintain the view that it will take a significant deterioration for the Fed to provide more stimulus. While both risk aversion and QE3 hopes depress Treasury yields, they have adverse effects on the USD. Risk aversion is supportive of the buck as investors seek safety in Treasuries and QE3 speculation weakens the dollar as it suggests the Fed ...

Sunrise Market Commentary - Fixed Income: the only way was up - Political tensions in the Netherlands and France in combination with weak PMI data set the tone for a risk off environment in which especially German bonds profited. The Bund set a new contract high and the German 10-yr yield set a minor record low (1.63%). The Dutch spread added 18 bps (78 bps) and is well underway to a the all time high (86 bps). - Currencies: EUR/USD showed only limited losses even as risky assets were sold - On Monday, EUR/USD ceded ground as negative political and economic headlines from Europe weighed on global market sentiment. However, investors were also cautious on the dollar ahead of tomorrow's Fed decision. Sterling was again an outperformer as EUR/GBP reached a new correction low. ...

www.sunbirdfx.com Wall Street stock exchanges closed with a negative note last night, locked in light of the shrinking economic activity at the Euro block, which weighed on the trading and the markets. Also influenced the markets were the ongoing European crisis, the Kellogg's cereal company's profit warning and a suspected bribery affair at Wal-Mart. All of these had an impact on yesterday's trading. The outlook on Europe's situation has been made clear with the release of the manufacturing and services activity report at the Euro block, which dropped sharply than expected in April. This is the third consecutive month in which it registered a decrease. Spain jumped on the government bond yield to over 6% in view of the decline of Spain that is going to recession. The yield on French ...

Fundamental News G20 Finance Ministers and Central Bank Governors reached an agreement to lift the funding resources of the International Monetary Fund by over $430 billion as the Eurozone debt crisis dent global growth. “This is the result of a broad international cooperative effort that includes a significant number of countries," the International Monetary and Financial Committee and the Group of 20 Finance Ministers and Central Bank Governors said in a joint statement issued in Washington late Friday. Bloomberg news reported that, the biggest gain in consumer spending in a year probably helped the U.S. economy keep expanding in the first quarter even as fuel costs climbed, economists said before a report this week. Gross domestic product, the value of all goods and services the ...

(Reuters) - The safe-haven yen eased and the Australian dollar rose on Monday after surprisingly strong Chinese factory activity data eased fears about a hard landing by the world's second-biggest economy. The Australian dollar rose 0.5 percent to $1.0399 after a report on Sunday showed activity at big Chinese factories hit an 11-month high in March. "This is telling you that there is no hard landing," said Rob Ryan, an FX strategist at BNP Paribas in Singapore. The upbeat data provided some respite for the Aussie dollar, which had hit a two-month low of $1.0305 last week as investors fretted about the chance of a sharp economic slowdown in China, Australia's single biggest export market. After jumping to $1.0470 in early Asian trading on Monday, up more than a full cent compared with ...

(Reuters) - The safe-haven yen eased on Monday, while the Australian dollar jumped after surprisingly strong Chinese factory activity data eased fears about a hard landing in the world's second biggest economy. The Australian dollar rose 0.5 percent to $1.0400 having peaked at $1.0470 after a report on Sunday showed activity at big Chinese factories hit an 11-month high in March. "This is now three months of trend improvement, and is good news for the AUD and commodity currencies in general," said Annette Beacher, head of Asia Pacific research at TDSecurities. Against the yen, the Aussie climbed to 86.44, pulling well away from last week's trough around 84.60. Adding to the yen's woes was a weaker-than-expected reading on business sentiment for big Japanese manufacturers, which put the ...