FLASH: The Euro Opens Lower on European Election Results
EUR/USD cross is around 1.301 now, -0.55% lower from Friday’s close.
Comments »The Euro Continues to Fall for a Fourth Day; Stimulus Expected From the ECB
The Euro is off by 0.0022 @ 1.311. Weakness is attributed to the ECB providing stimulus amid recent downbeat economic data.
Comments »The Aussie and New Zealand Dollars Rise on China PMI Data
“The Australian and New Zealand dollars rose against the yen as Asian stocks extended a global rally, boosting the allure of higher-yielding assets.
Both currencies snapped a two-day decline against the greenback after a private report showed improvement in China’s manufacturing industry last month, easing concern the world’s second-biggest economy will slow further. Demand for the South Pacific nations’ currencies was also bolstered before U.S. data this week forecast to show a pickup in hiring….”
Comments »German Unemployment Ticks Higher Sending the Euro Lower
Why Equities Traders Suck at Forex
Read Rogue Traderette about why trading forex is different from equities, here.
Comments »Gold and Silver Fall Over Concerns of Physical Purchases are Slowing
“Gold is seen dropping for the first time in six days in London on concern that physical purchases of the metal are slowing. Palladium fell from a five-week high.
The U.S. Mint sold 20,000 ounces of American Eagle gold coins in April, the least since June 2008, data on its website show. India last week celebrated the Akshaya Tritiya festival, considered an auspicious day to buy precious metals, and there was “disappointing demand,” UBS AG said yesterday.
“Physical demand has been relatively quiet,” Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance SA in Geneva, said by phone today. “There is a real lack of interest in the market. We’ve seen profit-taking and gold will continue to struggle” to move out of the $1,640 to $1,670 an ounce range, he said…”
Comments »The Euro Weakens for a Third Day on Spanish GDP Report
Aussie and Kiwi Dollars Fall on the Spanish Downgrade
Risk off for currencies as the downgrade in Spain cause investors to be cautious.
Comments »The Yen Strengthens Overnight; First Up Day in 4
“The yen gained for the first time in three days against the euro and dollar as a report showed economic confidence in the euro region fell in April, boosting demand for the safety of the Japanese currency.
The pound strengthened to the highest level in more than seven months against the greenback after U.K. consumer confidence climbed more than economists estimated. The yen reversed two days of declines even before the Bank of Japan (8301) meets tomorrow, with economists saying policy makers will unveil new easing measures. The implied volatility of three-month options for Group of Seven currencies fell to its lowest level in more than four years.
“Yen direction will remain mainly driven by safe-haven demand linked to developments in the euro zone,” said Lee Hardman, a foreign-exchange strategist at Bank of Tokyo- Mitsubishi UFJ Ltd. in London. “The yen’s sell off on the back of BOJ easing speculation was overdone. If the euro-zone debt crisis continues to reintensify, then it is likely the yen will strengthen further despite ongoing easing.”
The yen gained 0.5 percent to 80.91 per dollar at 7:43 a.m. New York time. It strengthened 0.6 percent against the euro, to 106.92. The U.S. currency was little changed at $1.3215 per euro after reaching $1.3263, the weakest level since April 3…”
Comments »The Aussie and New Zealand Dollars Fall on Interest Rate Cut Prospects
“The Australian and New Zealand dollars fell against most of their major peers after slowing consumer-price inflation in Australia increased bets the nation’s central bank will lower interest rates.
The Aussie dollar touched a two-week low against its U.S. counterpart even as global stocks and commodities rose following better-than-expected U.S. economic data and successful bond auctions in Europe. Both South Pacific currencies weakened for a second day versus the greenback.
“Commodity currencies have been a bit softer because you had a weak Australian CPI number overnight,” said Geoff Kendrick, head of European currency strategy at Nomura International Plc, by phone from London. “The big picture driver is likely to be growth this year.”
Comments »Revisionist History: Suddenly Everyone Was Betting On Strong Dollar All Along
Read here:
Comments »There’s at least one thing that bulls and bears on the U.S. economy agree on: the dollar, the most undervalued major currency in the world, is due to rise as Europe’s sovereign debt crisis threatens the global recovery.
Strategists who as recently as November were predicting the dollar would depreciate against currencies of the Group of 10 nations, now say it will climb by year-end. After weakening against all but the Mexican peso among its 16 most actively traded peers over the past decade, it has gained against 14 of them since February.
Bulls say the dollar will benefit from increased U.S. hiring and an economy that’s projected to grow 2.3 percent this year, almost double the 1.26 percent for the Group of 10, according to Bloomberg surveys of economists. The currency will also gain if global and U.S. growth slows as Europe’s debt crisis worsens, boosting demand for dollar assets such as Treasuries as traditional havens from market turmoil diminish.
“We’ve become more bullish on the dollar because the economic prospects in the U.S. are improving,” Ken Dickson, an investment director of currencies at Standard Life Investments in Edinburgh, which manages about $235 billion, said on April 18 by telephone. “There are additional reasons including problems in the periphery, and a weaker euro is required to help the transition to a better economic situation in Europe.”
Nigel Farage: Euro Break-Up Just a Question of How
[youtube://http://www.youtube.com/watch?v=llDYLb7HoIk 450 300]
Comments »The Euro and the Aussie Dollar Fall on Disappointing Economic Data
“The euro fell for the first time in five days against the yen amid concern French presidential elections and Dutch government turmoil will disrupt efforts to stem the region’s debt crisis.
Australia’s dollar slid after a report showed the nation’s producer prices fell last quarter, adding to speculation the Reserve Bank will cut interest rates. The yen rose at least 0.5 percent against all of its major peers as France’s Socialist challenger Francois Hollande won more of the first-round ballot than incumbent Nicolas Sarkozy, boosting demand for haven assets. The anti-euro National Front, led by Marine Le Pen, came third, winning a record number of votes for the far-right party.
“The results of the French election point to a narrow lead by Hollande, but an increase in support for the far-right political party suggests that negative-Europe sentiment may intensify,” said Michael Sneyd, a currency strategist for BNP Paribas SA in London. “This is likely to weigh heavily on the euro over the weeks ahead.”
The euro weakened 1.3 percent to 106.44 yen at 7:40 a.m. New York time. It dropped 0.7 percent to $1.3129. The yen strengthened 0.5 percent to 81.08 per dollar….”
Comments »The Euro Strengthens As German Business Confidence Improves
The Yen and Euro Pare Gains After French and Spanish Bond Auctions
The Aussie and Kiwi Dollars Rally on IMF Upgrade of Global Growth
“The Australian dollar remained higher against most of its major peers as Asian stocks extended a global rally after the International Monetary Fund raised its economic growth outlook.
The New Zealand dollar rose for a second day versus the yen as a drop in currency-market volatility supported demand for higher-yielding assets. Gains in the so-called kiwi were limited after Auckland-based Fonterra Cooperative Group Ltd. said whole- milk powder prices fell to the lowest since August 2009, and before data forecast to show inflation stayed within the Reserve Bank of New Zealand’s target of 1 percent to 3 percent.
“It’s a pretty fair bet we’d run with the positive sentiment for now,” said Sean Callow, a senior currency strategist in Sydney at Westpac Banking Corp. “We’ve seen a pretty big move on the likes of Aussie and kiwi. I think they can test a little bit higher on the day.”
Australia’s currency traded at $1.0398 at 4:14 p.m. in Sydney from $1.0390 yesterday. It gained 0.7 percent to 84.59 yen from yesterday, when it rallied 0.9 percent to 84.
New Zealand’s currency fetched 82.15 U.S. cents from 82.10. The kiwi strengthened 0.7 percent to 66.83 yen from yesterday, when it rose 0.6 percent to 66.38.
The MSCI Asia Pacific Index (CRY) of stocks rose 1.2 percent, following a 1.6 percent rally in the MSCI World Index yesterday. The Thomson Reuters/Jefferies CRB Index of raw materials climbed 0.4 percent yesterday…”
Comments »The Yen Falls Against its Peers for a second Day
“The yen weakened for a second day against the euro and dollar before U.S. data tomorrow forecast to show employment and housing markets are improving, reducing demand for the safety of Japan’s currency.
The yen fell versus all 16 of its major counterparts after Bank of Japan (8301) Deputy GovernorKiyohiko Nishimura said the central bank is ready to implement additional easing, and the International Monetary Fund yesterday raised its global growth forecasts. The pound strengthened after Bank of England minutes showed policy maker Adam Posen ended his push for further stimulus. Sweden’s krona appreciated as the central bank kept its benchmark interest rate unchanged.
The weaker yen reflects “both improving risk sentiment, and intensified speculation over the potential for further monetary easing from the BOJ,” said Lee Hardman, a foreign- exchange strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “The IMF also released its latest World Economic Outlook forecasts, which revealed a modest upgrade to its global growth projection.”
The yen declined 0.4 percent to 106.55 per euro at 6:44 a.m. New York time after falling 0.4 percent yesterday. Japan’s currency weakened 0.8 percent to 81.49 per dollar after appreciating to 80.30 on April 16, the strongest since Feb. 29. The euro dropped 0.4 percent to $1.3071…”
Comments »Currency Balances Between France and Switzerland Gyrate Enormously Pitting Traders Against Each Other
“For the first time in seven months, traders are testing the Swiss National Bank’s determination to limit the franc’s strength against the euro as Europe’s resurgent debt crisis drives up demand for safer assets.
The franc breached the central bank’s cap of 1.20 to the euro on April 5 and April 9, and options show investors are predicting even more appreciation. It jumped 1.1 percent versus nine peers in a basket of currencies in March, the biggest gain since July, and is up 1.8 percent from a nine-month low on Jan. 11, according to data compiled by Bloomberg.
Demand for Swiss assets is so strong that investors accepted negative yields at an auction of six-month government bills last week as Spain’s borrowing costs rose toward levels that prompted bailouts for Greece, Ireland and Portugal. The franc is climbing against its peers even after the Swiss central bank repeated a commitment to prevent increases that threaten to bring about deflation and hurt exports.
“As long as there is risk aversion tied to rising euro- region stress, investors will want to buy francs,” Peter Frank, a London-based currency strategist at Banco Bilbao Vizcaya Argentaria SA, Spain’s second-largest lender, said in an interview on April 10. “The Swiss franc is an extremely liquid currency, it is tradable throughout all time zones and the economy is very resilient.”
The franc will weaken to at least 1.23 per euro over the next three months as the central bank steps up efforts to counteract its strength, he said…”
Comments »Spanish Bonds and the Euro Fall Before a Spanish Debt Auction
“Spain’s bonds led a slump among the euro-region’s higher-yielding government securities after a minister called on the European Central Bank to buy its debt and stem the financial-market turmoil.
Ten-year Spanish yields jumped to a four-month high before the nation sells 12- and 18-month bills tomorrow and notes due in October 2014 and January 2022 on April 19. The cost of insuring Spain’s securities against default advanced to a record, while Italian bonds slid and Portuguese 10-year rates rose for an 11th consecutive day. German bund futures climbed to a record as investors sought the safest assets.
“Clearly investors are again getting worried that Spain may not be able to overcome its problems without external help,” said Elwin de Groot, a market economist at Rabobank Nederland in Utrecht. “One thing that could stop this is ECB intervention but they are not extremely keen on taking that role at this point in time. Sentiment is starting to crumble.”
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The Euro is trading 0.0037 @ 1.3003
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