It was mostly a fairly quiet session although the ECB’s Praet provided clearer outlook on the ECB’s view towards inflation which was then backed up by Hansson and BuBa’s Weidmann who reiterated the same mantra, which had the effect of pushing the Euro higher. At around the same time stories began to emerge of further Brexit strains,… Read More »
The US$ looks set to remain under some mild downside pressure against the EU majors and the Aud$, while at the same time enjoying a ride above 110.00 against the Yen – as long as risk sentiment remains positive. Buying the X/Jpy therefore looks appropriate, with both EurJpy and AudJpy seemingly set for further gains in the next… Read More »
It has been a choppy day, without too much direction although the US$ remain under some mild downside pressure. There does not seem to be much follow-through though and in the absence of any major data, today may be a similar type of session. Ideas are rather thin on the ground right now, with WTI looking to be… Read More »
Asia was quiet with the Aud not showing any interest in the RBA decision to leave rates on hold, but things livened up in Europe after the release of the UK services PMI for May. Came in better than expected, pushing Cable higher, with the data hinting that the soft patch in Q1 may be temporary, but… Read More »
The week started with Asia and early Europe both being in risk-on mode, with the Aud and Kiwi being notable beneficiaries in the currency markets, while the US$ has come under pressure on all fronts, despite Friday’s strong employment data. That turned around during the course of the session, with Sterling coming under heavy selling pressure –… Read More »
The risk-on mode seen on Monday seems set to continue, at least in the short term, with the US$ seemingly under some pressure heading into Tuesday against the Euro, Aud$ and the Kiwi. How long this will last for is questionable, although the dailies do seem to be turning negatively against the dollar and so it may be… Read More »
It all looks rather clouded at the start of the week and there is no real trend that is obvious anywhere, except that WTI looks as though it is developing a sustainable move lower. EurJpy also looks heavy and selling rallies is preferred. Otherwise it all looks rather choppy on Monday and given the absence of any major… Read More »
The US employment data on Friday was strong although the lack of follow-through in seeing a stronger US$ was rather puzzling. The NFP grew by 223k in May, above expectation of 190k, while the headline unemployment rate dropped to 3.8%, beating expectation of 3.9% to hit the lowest level in 18 years. The wage growth was also… Read More »
Italy’s turmoil was again the focus in European trading with the impact spilling across asset classes, including stocks, which headed lower in Europe, where most of the damage was done. By the time the US got going, the markets generally consolidated. Given the rising tensions in Europe, the Euro dived, while the Chf and the Jpy were… Read More »
Once again there is no green on the heat map and with safe haven demand resulting in a move away from risk-related assets due to the building tensions in Europe; we look set for further downside in the Euro and in US$Jpy, and possibly US$Chf. This will result in all the Euro crosses staying heavy as well and… Read More »
