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Forex News and Events:
The FX markets remain on hold ahead of FOMC Chair Bernanke’s testimony due tomorrow. Over the past two weeks, the speculations on Fed’s tapering of bond purchases have been the key topic across all major currencies. Today, the USD weakness is in game due to position adjustments before hearing what Bernanke has to say.
Released this morning, the UK inflation in April greatly surprised to the downside. Cable registered a decent sell-off on the speculation for more QE to boost the growth, while Euro remains highly reactive to data/news out of US and UK.
Bernanke to Remain Dovish
The key topic across the major currency markets over the past two weeks has clearly been the specs on hawkish Fed and early tapering of asset purchases. However, last week’s US data put some ...
Title:
Inflation Risk For GBPUSD
Inflation Risk For GBPUSD
UK inflation data for April is the economic highlight during the European session today. GBP traders shoudl watch this data as it could have important implications for the pound.
Expectations:
UK inflation data is released at 0930 BST/ 0430 ET today.
CPI is expected to fall to 2.6% from 2.8% YoY for April
This would be the first decline in CPI since September 2012
Some of the downward pressure on inflation may be the fall in the price of petrol.
Market impact:
Lower inflation could increase the scope for more monetary easing under new Bank of England Governor Mark Carney, when he takes over in July. QE is considered GBP negative, thus weak inflation could see the pound fall on a broad-based basis.
We think that the pound is most vulnerable ...
Most Asian stocks fell today as investors are becoming more cautious head of U.S. Federal Reserve chief Ben Bernanke`s testimony on Wednesday as many are paring back on expectations that Feds will start reducing its bond-buying program anytime soon.
“Given the strong rally in global equity markets, a pause for breath is probably not going to cause much of a stir but we remain cautious on the longevity of the rally due to the continuing dichotomy between economic data and risk asset performance”, said Mitul Kotecha.
- The MSCI Asia Pacific Index fell 0.1% to 144.27 as of 14:19 in Hong Kong after gaining 0.1% earlier in the day
Nikkei hit a fresh five-and-a-half year high at 15,388, yet the index pared some of the gains after real estate stocks suffered as the yen continued to trade ...
Title:
Dollar Off The Recent Top
Sunrise Market Commentary
- Rates: US Treasuries end quiet session nearly unchanged.
- In a typical Monday session devoid of eco data or main events, US Treasuries closed little changed. An initial rally that attempted to recoup Friday's losses was reversed when US equities rallied. Both ended the session nearly unchanged. Interesting comments on QE by Fed Evans in late trading pushed Treasuries slightly lower.
- Currencies: Dollar off the recent top
- The focus of currency markets is on the Fed's exit debate. The dollar is losing some ground as markets anticipate that Fed Bernanke will keep the current Fed approach when he speaks on Wednesday. EUR/GBP is holding a tight sideways range going into this week's UK eco data.
The Sunrise Headlines
- US equities ended ...
Fundamental Analysis
EUR
"The consolidation of public finances will follow the objectives that have been clearly set."
- Slovenia's finance ministry
Even despite the nation’s plan, which is projected to stabilise public finances and lead to an economic recovery, Slovenia’s credit rating was downgrade by the Fitch agency. Fitch cut Slovenia’s main debt rating to 'BBB+' down from A-, with a negative outlook; saying that macroeconomic and fiscal outlook has deteriorated significantly.
Read more: FULL REPORT - Fundamental Analysis
Technical Analysis
EUR/USD
"It’s the U.S. economy that’s in the vanguard, and that explains why the dollar continues to advance. The Federal Reserve might exit its quantitative easing sooner than later, while the BoE is going to do more QE and the ECB is ...
Title:
Dip buying on USD/JPY
Morning Briefing : Dip buying on USD/JPY
What's new :
Forex: Markets await Ben Bernanke’s speech on Wednesday.
Global Markets: US and Asian equities closed slightly in the red.
Overnight rates and Indices:
EUR/USD 1.2862 1.2904 0 %
USD/CHF 0.9655 0.9704 -0.02 %
GBP/USD 1.5222 1.5277 -0.08 %
USD/JPY 102.08 102.77 -0.32 %
EUR/CHF 1.2453 1.24922 -0.03 %
EUR/JPY 131.68 132.31 -0.31 %
Dow Jones 15314.15 15391.84 -0.12 %
Nasdaq 3011.95 3032.86 -0.26 %
S&P 500 1663.52 1672.84 -0.07 %
Nikkei 225 15264.42 15388.37 0.13 %
Shanghai 2290.12 2304.42 -0.10 %
Gold spot 1384.15 1401.59 -0.04 %
Crude Oil 96. ...
Market participants continue to anticipate a busy week ahead, with U.S. and Japanese monetary policy decisions, as well as the minutes of the Bank of England`s Monetary Policy Committee latest meeting.
Meanwhile, the U.K. government is preparing to release April`s consumer and producer prices, expected to show that annual inflation in the United Kingdom crept down towards the Bank of England`s 2 percent target.
The door might be opened for Policymakers at the Bank of England (BoE) to expand the size of the asset-purchase program in the coming period, before a new governor takes the helm of the central bank in the summer.
figures from the Office for National Statistics are today predicted to show the first fall in consumer prices since September last year, although the expected ease is ...
Gold edged up on Tuesday trading session after seven sessions of losses as Moody’s said U.S. policy makers must address rising debt ratio to avoid a a 2013 credit-rating downgrade, boosting gold’s safe-haven appeal.
Gold ended higher on Monday after U.S. dollar weakened following Moody’s Investors Service comments where they said that the U.S. may face a credit downgrade. According to bloomberge, Moody`s said policy makers in the U.S. must adress the rising debt loads forecasted to further increse later this decade.
As of (09:07 GMT+3) gold for immediate delivery gained 0.94 percent or 13.08 points to trade at $1,397.89 after opening at $1,393.72, having earlier hit a low of $1,384.06, and a high of $1,401.27.
Gold dropped sharply on Monday after some Federal Reserve officials said the ...
Japanese yen back to losses versus major currencies before the upcoming board meeting of the Bank of Japan, where the yen tried earlier to incline after the economy minister’s speech.
Moreover, Japanese economy minister Akira Amari warns from further decline in the yen, adding that further slide in the yen may leave negative impact after the recent 21% drop during the previous six months.
USD/JPY pair traded today near 102.50 after recording high of 102.75, while the EUR/JPY pair inclined to 132.29. GBP/JPY pair inclined to 156.50.
Australian dollar continue to incline versus dollar and other currencies in attempts to compensate its previous huge loses, while RBA released today its May’s meeting minutes which saw rate reduction to 2.75%.
AUD/USD pair inclined to 0.9831 after starting ...