Usd/jpy
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 ...
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. ...
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 ...
Asian Market Update
JPY weakens after Japan Econ Min Amari clarifies position on yen correction; AUD gains on neutral policy bias in RBA minutes
Economic Data
(AU) AUSTRALIA RBA POLICY MINUTES FOR MAY MEETING: Decided some easing scope should be used at the May meeting
(AU) AUSTRALIA MAR CONFERENCE BOARD LEADING INDEX: 0.1% V 0.3% PRIOR (3rd consecutive increase)
(NZ) NEW ZEALAND Q2 RBNZ 2-YEAR INFLATION EXPECTATION: 2.1% V 2.2% PRIOR (multi-year low)
(NZ) NEW ZEALAND APR CREDIT CARD SPENDING M/M: +0.4% V -0.3% PRIOR; Y/Y: 4.0% V 3.7% PRIOR
(NZ) NEW ZEALAND APR NET MIGRATION: 1.6K V 1.3K PRIOR
Markets Snapshot (as of 03:30 GMT)
Nikkei225 +0.1%
S&P/ASX -0.7%
Kospi -0.2%
Shanghai Composite -0.1%
Hang Seng -0.4%
Jun S&P500 -0.1% at 1,663
Jun gold +0.3% at $1,384/oz
Jul crude ...
So far throughout the US session major pairs consolidated as a result of technical movements and also as today we witnessed a calm day on the U.S soil with a lack of data released.
Yet Dallas Federal Reserve’s President Richard Fisher told CNBC reporters earlier that a scale back for the Fed’s monthly $85 billion in bond purchases should be the key, as halting it would be “too violent for the market.”
Accordingly the euro is presently narrow trading on the four and one-hour charts as a result of the current technical movements sending in fact the EUR/USD pair to trade up around $1.2869 while recording the highest level of $1.2880 and lowest level of $1.2818, knowing that the pair may incline but slightly as mixed signs are seen throughout the four-hour and one-hour momentum indicators. ...
European Market Update
Whit Monday holiday has Europe on the sidelines
Notes/Observations
Nikkei225 index trades higher than the US Dow Industrial 30 index for the first time since May 2010
Ceasefire in the currency war ??? Japan Econ MIn Amari suggesting that excessive gains have already been corrected by a large amount and any further weakness could actually become a detriment
Short-range North Korea missile launch into the Sea of Japan this weekend
China property sector retained its allure despite the govt steps to curb housing inflation. April property prices across 70 cities rose 4.9% y/y - the biggest increase since Apr 2011
European market participation light die to Whit Monday holiday (Pentecost)
Economic Data
(JP) Japan Mar Final Leading Index CI: 97.9 v 97.6 prelim; ...
The Japanese yen gained today as politicians were worried that the excessive drop of the currency may be not that beneficial for the country and may actually hurt the economy.
Japanese Economy Minister Akira Amari said that “excessive yen gains have been corrected a lot”. He voiced concern that further depreciation can make negative impact on Japanese consumers. The yen gained on the news, but the rally was limited and the currency may yet lose its gains.
USD/JPY was down from 102.74 to 102.56 as of 7:42 GMT today after touching the low of 101.92. EUR/JPY traded at 131.94 after falling from 131.94 to 130.91.
Fundamental Analysis
EUR
"The EBA stress tests were really dependent on whether the ECB was ready to do its own asset quality review in the second half of the year."
- Andrew Stimpson, a London-based banking analyst at Keefe Bruyette & Woods Ltd
As the European Central Bank is set to take centre stage as the region’s chief banking supervisor, banks across the Eurozone are going to face tough regulatory scrutiny of their balance sheets.
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 favored to do more."
- Miller Tabak & Co. (based on ...