Speculative Yen Buying

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 The US stock markets closed last week with the worst performance since the beginning the year and the signals for an incoming bearish correction are increasing. However, the NASDAQ closed high and looks like it is ready for another bullish session, unlike the other main indices that look more bearish. The trading week will open on the background of the disappointing Non-Farm payrolls data from Friday that showed that the American economy created just 107K jobs during the previous month, whereas analysts expected it to create 207K new jobs. EUR/USD Many of the central banks in Europe are closed today due to Eastern holiday and therefore the Euro might trade in narrow range, as it was on last Friday. The pair broke down the support at 1.325, which we analyzed last week ...

(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 ...

www.sunbirdfx.com The US stock markets continued the bearish momentum that started on Wednesday and shed 0.7% despite improving unemployment claims. However, the indices reached the break-up levels, which are now supporting the stocks and in order to see additional declines, the S&P will have to break-down the level of 1380 points. USD/JPY The declines in Wall Street and the encouraging economic data supported the USD against the major currencies, except the Japanese Yen. Two weeks ago, we estimated that a strong break-up at 80.0 would take the USD up to 85.0 versus the JPY, and the pair started correcting down after reaching 84.15. The USD might continue rising in the current session but the chances for a bearish correction are getting higher, as stochastic levels indicate for an ...

(Reuters) - The yen dipped against the dollar on Thursday in a knee-jerk reaction to data showing Japan's current account swung to a record deficit in January, while risk currencies gained together with stocks on hopes Greece may secure a bond swap deal. Short-term players sold the Japanese unit after Tokyo posted its first current account deficit in three years. It came in at 437.3 billion yen ($5.41 billion) in January, wider than market estimates of a 317.8 billion yen deficit. Economists blamed the result on a shift away from nuclear power that pushed up fossil fuel imports and the Chinese Lunar New Year holiday that weighed on exports. However, they saw it as a one-off figure and expect the annual current account to remain in surplus for the next few years. The dollar climbed 0.3 ...

(Reuters) - The dollar fell broadly on Wednesday after a report cited Federal Reserve officials saying they are considering a new bond-buying program to support the fragile economic recovery, a move that would undermine the currency's value. The euro rebounded off a three-week low against the greenback. But its gains were kept in check by the unresolved Greek debt swap deal that still requires bond holders to agree to terms locking in a nominal 53.5 percent loss on their investment. According to the Wall Street Journal, Fed officials are considering buying bonds while simultaneously borrowing the money it used to buy those bonds for short periods of time at low interest rates in order to limit inflation pressures. "That is something the market completely thought was an impossibility, ...

(Reuters) - The euro and growth-linked currencies eased on Monday, undermined by concerns over Greece's progress on completing a debt restructuring deal and poor euro zone data, although their losses would be checked by profit-taking in the dollar. The dollar pulled away from a nine-month high against the yen having risen more than 7 percent in about a month. The euro was also lower against the safe-haven yen. Riskier assets like stocks were hit after Asian powerhouse China lowered its growth target, while euro zone surveys of purchasing managers fell from initial estimates, driving the single currency to a two-week low against the dollar. The euro fell to $1.3160, before recovering to trade at $1.3195, with large investors looking to sell it into a bounce above $1.3200. Bids for the ...

(Reuters) - The euro and growth-linked currencies fell on Monday, undermined by concerns over Greece's progress on completing a huge debt restructuring deal and poor euro zone economic data, although dealers said the dollar was ripe for some profit-taking. The dollar pulled away from a nine-month high against the yen having risen more than 7 percent in about a month. The euro was also lower against the safe-haven yen. Riskier assets like stocks were hit after Asian powerhouse China lowered its growth target, while euro zone surveys of purchasing managers fell from initial estimates, driving the single currency to a two-week low against the dollar. The euro was down 0.25 percent at $1.3168, with large investors looking to sell it into a bounce to around $1.3200. Many were nervous about ...

The scale of money printing in the West has become so massive that the world may fall prey to "monetary anarchy," with traces of bubbles appearing everywhere. At least that's what some critics see in the latest round of cash pumping by major central banks. It is also an eerily reminiscent of 2011, when similarly generous monetary easing sparked higher oil prices, slowed the recovery and stoked speculative hot money flows into vulnerable emerging markets. The European Central Bank alone is expected to lend another half trillion euros or more of super-cheap money to banks on Wednesday, following Japan and Britain which have already injected fresh cash. The Federal Reserve has promised to keep interest rates low until 2014 and act further if needed. There is a sense of deja-vu in ...