Currency Markets Remain on Edge, Amid Austerity Review
Capital markets during the week continued to be driven by headlines surrounding Greek austerity and the ability of the Greek government to reach targeted budget levels. During the week, the Greek government won the vote of confidence 155-143, which opened the way to the passage of the €80 billion austerity package in parliament next week. [...]
European Debt Fears Sway the Market’s Direction
The declines in riskier assets came as Greek debt fears intensified, after euro-zone officials failed to make progress on discussions about aid. Late in the week the markets experienced a reprieve, but fear remains in the market. Protests against further spending cuts increased frustration and turned violent in Athens. Greek yields moved to their highest [...]
Weak US Data Keeps Dollar on the Defensive
Market sentiment throughout the week remained cautious as market participants reacted to a stream of data that hurt investor sentiment. Manufacturing data, was weaker than expected in China, the UK, the EMU and the US. When combined with a decline in the employment situation in the US, the economic backdrop trumped any other news during [...]
Soft CPI Pressure Swiss Franc
The CHF is amongst one of the worst performers on the day versus the dollar, plunging nearly 0.8% after reporting softer-than-expected CPI data. April prices came in at 0.3% y/y and only increased 0.1% m/m. With the SNB thought to be moving towards policy tightening, the sharp deceleration in prices may reintroduce the threat of [...]
Dollar Slide Generates “Risk On” Trade
The US dollar is set to end the week on a whimper with the combination of month end selling and momentum taking the dollar to new lows. An acceleration of euro zone inflation reinforced the divide between the Fed and ECB policy and prompted the euro to move above $1.485, while the Swiss franc advanced [...]
Dollar Crumbles During a Volatile Week
The week began with a market swoon after S&P announced that it was placing the US on negative watch. Standard & Poor’s Ratings Services Inc. cut its outlook on the U.S. to negative, increasing the likelihood of a potential downgrade from its triple-A rating, as the path from large budget deficits and rising government debt [...]
China’s Manufacturing Moderates
China’s economic growth appears to be slowing. The official December manufacturing ISM eased to 53.9 from 55.2 in November and compares with consensus expectations of around 55.5. The results were in line with the private HSBC measure released last week. The moderation was widespread including output, new orders and employment. New export orders ticked up [...]
A Sterling Break Out is on the Cusp
The Pound has been a difficult currency to track. Recently the moves in the Sterling have been volatile as investors are trying to determine the future direction of the UK economy. Recently the UK data points have pointed to a weakening economy. Over the weekend, the health of the UK housing market was again cast [...]
The Dollar Continues to Slide
Will the dollar index continue to hold trend line support? Or will current technical’s push it over the edged. European investors seemed unperturbed by the new strains in the European bond market and had bid the euro up during the European trading session to $1.3120. North American traders seem more concerned as they were before [...]
USDCHF looking to complete its retracement
USDCHF seems to be completing its retracement and is looking to do so just around 1.0530 level. USDCHF is expected to resume its upward trend again from 1.0530 level. If USDCHF manages to continue its downward trend and break of 1.0530 will mean that its next target will be somewhere around 1.0450 level. On the [...]
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