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Traded In A Tight RangeTitle:
Global stocks, euro slip on weakening growth
(Reuters) - U.S. stocks and the euro edged lower on Thursday as data suggested Europe's debt woes were spreading and worsening a global economic slowdown.
In a volatile session, investors looking for bargains earlier bought equities, oil and gold which have been battered this week by worries Greece would leave the euro zone. But the buying of growth-oriented assets faded as worries about the euro zone's drag on the world economy returned.
Stocks and other riskier assets turned negative as disappointing data from Europe, China and the United States compounded concerns about the economic contraction moving across Europe.
Amid speculation of more coordinated efforts from major central banks to stem further deterioration of the euro zone debt crisis, bond yields of Spanish, Italian and ...
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Dukascopy Afternoon Forex Overview : 22/05/2012
Fundamental Analysis
EUR
Gold extended previous gains in Asian session on Tuesday as concerns over Greek exit from the single currency union eased. At G8 summit leaders of eighth largest economies stated that they would do everything possible to retain Greece in the Euro Zone. COMEX gold June contract traded at 1,592.35 US Dollars per troy ounce on the New York Mercantile Exchange, advancing by 0.23%.
USD
The US Senate has passed a bill aimed at tightening sanctions imposed on Iran to force the country to cease its nuclear program. The new sanctions imply investigation of role of Iran's Revolutionary Guard in oil exports as well as obliging the US companies to disclose any business activities with Iranian partners. The move came ahead of negotiations between Iran and six major ...
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Vale sees iron ore price rising in second half of 2012
Brazilian mining company Vale SA (VALE5.SA) remains confident the price of iron-ore, its main product, will rise in the second half of 2012, relieving environmental and economic pressures on the company which have hurt growth and delayed new projects.
Iron ore .IO62-CNI=SI fell to its lowest level in nearly six months on Friday, slipping 1.7 percent to $131.30 a metric ton (1.1023 tons). The medium- to long-term price, though, should be in the range of $120 to $180 a metric ton, Jose Carlos Martins, Vale's head of ferrous metals and strategy, said at a lunchtime gathering with reporters in Rio de Janeiro.
Demand for steel remains strong in China, thanks to housing, Vale Chief Financial Officer Tito Martins added. At the same time, declines in prices push higher-cost Chinese producers out ...
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The havens dominate trading in the Asian session
Euro reached today its lowest in four months against the dollar amid the absence of confidence in financial markets during the political instability in Greece, which is adding to speculation for the first euro exit and the consequences on the market and the 17-nation economy.
The EUR/USD pair fell to record a low of 1.2813 near the lowest in four months, where the pair started the Asian session at 1.2829 after it recorded a high of 1.2837, and currently at 1.2826.
The Australian dollar declined against the U.S. dollar to reach the lowest in four and half months at 0.9944 to trade under parity levels at 1.0000, after recording the high of 0.9984.
Meanwhile, the USD/JPY pair traded within a tight range today during Asian session to record high of 79.92 and low of 79.80, and currently at ...
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Contending With Greece And Spain
Risk assets continue to get sold today and the back-drop remains fragile. The leader of the radical left Syrizia party in Greece has two days to try to form a government, thus expect anti-austerity/ anti bailout rhetoric to continue to come out of Athens today. It appears that Tsipars – the head of Syrizia - wants to hold new elections to try and win the premiership. This only extends the uncertainty about Greece remaining in the Eurozone, which spooked risk assets yesterday.
Spanish banks
That isn't the only thing that investors need to contend with. The Spanish bond market is pricing in the risk of the government needing to bail out its banking sector, hence why its bond yields are flying higher this morning. The 10-year yield has risen nearly 25 basis points so far today and is back ...
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The Market Waits For A Seemingly Magical Budget Out Of Australia
Overnight, the FX and equity markets regained some of their composure following on from yesterday's risk sell-off on the back of the elections in France and Greece, but investors have consolidated today leading to a slow slide lower for most risk assets.
Price action was fairly range bound during the session, except for a small drop in the aussie following figures out of Australia showing a wider than expected trade deficit. The actual deficit was AUD 1.59 bn, a 110.5% jump's from February's figure and modestly higher than the expected –1.3 bn. A 1.6% jump in exports was not enough to reduce the trade balance considering imports increased by 4.9%. Nonetheless, the dip in AUDUSD was limited by overall investor sentiment which is centred on Europe right now.
However, the market is eagerly ...
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When Will Volatility Pick Up
The Week Ahead
Highlights
When will volatility pick up
Digesting payrolls
Will there be more QE for the UK?
Data Watch
When will volatility pick up?
Volatility in US Treasuries is at its lowest level since 2007, so too is volatility in the FX options market for short-term EURUSD products and the Vix has fallen sharply since peaking in autumn 2011. Yet Europe's sovereign stresses remain as strong as ever, Spain and Italy are struggling to sell their sovereign debt to anyone bar their domestic banking sectors and election risks are enormous as Greece and France go to the polls on Sunday.
So why is volatility so low? The answer lies with central banks and fairly tight FX ranges. When central banks come in and pledge that interest rates will remain extremely low until 2014, ...
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European shares gain as ECB eyed, euro steady
(Reuters) - European shares rose while the single currency languished near 10-day lows on Thursday as investors waited to see if a gloomier economic outlook would prompt the European Central Bank to hint at further stimulus measures at a policy meeting.
Fears in the debt market that the deepening euro zone recession and a two-notch downgrade would hit Spain's ability to fund itself eased after the government sold new three- and five-year debt although its borrowing costs rose sharply.
But the spotlight is on the world's major central banks after surprisingly weak economic data from the United States and across the European Monetary Union (EMU) rekindled concerns about the strength of the global economic recovery.
"Given the recent weakness in the EMU economy indicators, we suspect the ...
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Gold retreats as U.S. data lifts dollar
(Reuters) - Gold prices retreated towards $1,650 an ounce in Europe on Wednesday after a downbeat reading of euro zone manufacturing activity contrasted with stronger data from the United States, pushing the euro lower versus the dollar.
Spot gold was down 0.4 percent at $1,654.49 an ounce at 05:15 a.m. EDT (0915 GMT), while gold futures for June delivery were down $6.70 an ounce at $1,655.70.
The precious metal traded in its tightest monthly spread since last June in April and remains firmly within the $1,620-1,670 range, awaiting fresh impetus from the wider financial markets and economic indicators.
Jobs data at 1215 GMT will be closely watched as a precursor to a key non-farm payrolls report on Friday. A weak report would lift expectations for more monetary stimulus.
"With economic ...
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