Posts Tagged: Eurozone

The European currency has managed to score gains during the overnight trade, just as the commodity currencies did. They have traded at higher values than the safe-haven currencies, based on the certainty of the traders that the European officials will find a way to solve the sovereign debt crisis. But the Euro optimism has only lasted during the overnight session, period in which the Euro managed to score gains of 0.71 percent against the Swiss Franc, of 0.33 percent against the US Dollar and of 0.31 percent against the Japanese Yen. But these gains have been lost during the day, after the opening of the North American trade due to the fact that the German Prime Minister, Angela Merkel, made some dovish commentary. She has called on the larger European Union’s nations in order to help with the periphery countries as for the sovereign debt crisis to be solved “from the core” as she believes that the meeting Read more »

Asian stock markets opened higher today but bearish outlook remains. NIKKEI started the day at 9,443.32, previous close was 9,411.28. HANG SENG opened at 21,971.24, previous close was 21,953.11. Even though the analysts were thinking that 9,400 support will hold, the investors are cautious as global economic growth is slowing and Greece’s debt problems are getting worse. Analysts said concern about tax hike is also affecting the market. The Mainichi newspaper reported that the Democratic Party is considering to raise both corporate and income taxes by around 10% to repay new government bonds for funding the reconstructions needed.

Asian trading session was almost flat during early hours but later USD bulls started to show some strength again. AUD, GBP, EUR and CHF are falling against USD by the time of writing.

Of course the main reason behind USD strength is that the fears of a Greek default. Everybody is so concerned about Greece defaulting and the effect that Read more »

NIKKEI started the day at 9,446.84, previous close was 9,448.21. HANG SENG opened at 22,333.70, previous close was 22,508.08. Japan BSI Manufacturing Index came in at -23.3% vs -2.1% forecasted. For now, support at 9,400 seems strong and Asian investors are buying Japan shares. Shares of electric power companies rose after the cabinet approved a scheme to help Tokyo Electric Power compensate people affected by the crisis at its crippled Fukushima nuclear power plant. However the market is losing its momentum due to concerns over the U.S. and Chinese economic growth.

Asian trading session started with USD strength but later the situation reversed. USD is declining against its major counter parts. USD/JPY is trading between 80.07 and 80.25. NZD is trying to reverse its decline after the earthquakes struck Christchurch yesterday. AUD dropped after the weak NAB Business Confidence data but it climbed after China CPI and Industrial Production data released.

Economic reports released today showed that Read more »

The end of the week brought a positive change in situation for the USD as the macroeconomic reports have showed an improvement, pointing out the fact that the US economy is recovering and that the currency is headed towards a higher value.

It has been noticed that the US import and export prices grew by 0.2 percent during the month of May. This has lead to a federal budget deficit of only $57.6 billion last month, although the estimated amount was that of $123.2 billion. It is expected that, next week, the government report will point out to the fact that the inflation decreased from 0.4 percent to 0.2 percent.

The Standard & Poor’s 500 and the falter of the Euro have helped the USD stage the biggest rally in the last three weeks. On Friday, the Dow Jones FXCM Dollar Index showed a 0.8 percent rally, which is the strongest value the USD managed to Read more »

Today Asian session is going almost flat. Market participants will be on hold today, waiting for the job reports from the United States. While there is no big reaction in the currency market, most Asian stocks decline as the market is awaiting the monthly job reports. Traders are not optimistic about today’s numbers after the ADP data came very weak 2 days ago.

NIKKEI fell 0.48% to 9,508.89, TOPIX slid 0.87% to 818.59 and HANG SENG dropped 0.33% to 23,176.90 as investors are worried about weakening economy in the United States. Today’s reports will shed light on the economy. If today’s figures come worse than the market forecasted, it may trigger further decline in the dollar.

Slowing economic recovery is not the only concern over the U.S. economy. Reaching Debt-Ceiling and deficits have been pressuring the federal government. Moody’s said “The heightened polarization over the debt limit has increased the odds of a short-lived default. If this situation Read more »

Yesterday data releases from around the globe were generally negative and worse than the market expected, except Swiss retails sales and SVME PMI.

China’s PMI index fell to 52, from 52.9 in April. The U.S. PMI dropped to 53.5 from 60.4 in April. Data from the euro region was at 54.6 compared with 58 in April. In Russia, PMI slipped to 50.7, from 52.1 in April. Figures showed that manufacturing growth from Asia to Europe and U.S. slowed in May, also indicating that momentum of global economy is weakening.

ADP Employment Change came in at 38k vs 177k expected. U.S. equities fell sharply after very weak ISM and ADP figures. The dollar weakened against JPY and CHF. Safe heaven currency CHF hit record highs against USD and EUR. A fast rise is Swiss retail sales data also boosted speculations that the SNB (Swiss National Bank) may raise borrowing costs.

Sterling weakened against the dollar and euro Read more »

After the decrease during the last week of trading, the Euro managed to grow today based on the speculation that the European Central Bank will increase its interest rates. This comes as a positive solution to the sovereign-debt crisis which Europe has been dealing with in the last period. But this optimism has not been built to last for a long period of time, meaning that in a short while after starting to grow, the Euro fell back.

It seems that the market is no longer willing to overlook the European Union’s various problems but it is now looking towards higher return rates. But we can notice after each trading day that the balance between risk and reward is re-established. After the ECB’s attempts of aggressively curbing the yield forecasts by the means of its policy decision and after the press conference yesterday, the situation tends to get even worst as the rumours regarding Greece’s decision of Read more »

This trading week has brought some unexpected changes on the Forex market as the safe currencies grew beyond expectations and the commodity currencies started to fall. The Euro has brought some surprises as well, as it fell more than expected. The tendency of the previous weeks was that of bullish trading, but that impressive rally has quickly transformed itself into a sharp slide, causing traders to question the Euro’s sustainability at this trading level and reducing the optimism associated with it.

As the USD started to grow on sentiment, due to the news related to Osama bin Laden’s death. Its evolution was astonishing even against the Euro. On the other hand, traders tried to do everything possible as to hold the Euro’s position against the US Dollar. Also, the Euro rallied against the GBP, but did not manage to have great results. Any sign of strength completely faded, causing the currency to fall beyond expectations, after the Read more »