Tepid Consumption Risks Further Dollar Damage
Yen strength and dollar weakness are once again the order of the day as the Fed’s aggressive option fails to prop risk appetite partly due to the threat of a downgrade of the US’ largest bond insurer MBIA. The S&P’s failure to close above the key 1,370 resistance after having…
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London Session Recap
Over the course of this week, the New York trading has been the epicenter of volume and price movement. This is largely due to the focus on US economic news. Yesterday, the remainder of the globe eagerly awaited the Federal Open Market Committee interest rate announcement (released -0.50% to 3.00%)….
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Euro-zone CPI Flash Estimate Creeps Higher, Stoking Inflation Concerns
Flash estimates for Euro-zone CPI unexpectedly ticked up to a 14-year high of 3.2% in January from a year earlier from 3.1%, and compared to the rest of this morning’s European data, the news highlights the European Central Bank’s conundrum. Indeed, German retail sales surprisingly fell for the third consecutive…
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Currency Currents
Well, the currency market woke up from its coma for about two or three hours yesterday. Price action after the Fed cut interest rates by 50 basis points was wild, to say the least. The dollar took a beating immediately after the announcement, and U.S. stocks jumped.
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Euro Retreats as Retail Sales Prove Horrid-Will ECB Be Next To Ease?
A day after another interest cut from the Fed and the EURUSD has lost most of its post news momentum after disappointing German Retail Sales figures raised concerns that the economic slowdown in US is starting to spread across the Atlantic. German Retail Sales printed at -0.1% versus 1.7% expected…
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Currency Updates: Greenback’s Weakness
Majors are still on the rise where greenback’s bearish trend is still valid. More confirmations are now within hand confirming the tough spot the US economy is in at this point. The feds easing policy seems for now working for markets as they price in the lower benchmark assuming that…
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Dollar Battles Continue
The major loss of yield support will battle with investment inflows in the short term which will maintain volatile trading conditions. Following the latest FOMC meeting, the Federal Reserve cut interest rates by a further 0.50% to 3.00% with the discount rates also reduced by 0.50%. The Fed stated that…
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Risk Willingness Limited After US Rate Cut
From a macro perspective we have very interesting data coming up today and tomorrow. Today, the weekly intial and continuing claims will draw extra attention as we have the release of the US January Job Report where focus will be on the change in Nonfarm Payrolls, especially after the strong…
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European Market Update
The USD remains on the soft side following the FOMC interest rate decision and the related statement released on Wednesday. The EUR/USD continues to hold above the 1.4830 technical pivot point, but is off of its best levels seen in pre-European trading. However, the Euro failed to achieve fresh all-time…
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German Unemployment Falls to 15 Year Low
German unemployment precipitously fell from 8.4% to 8.1%, as the number of unemployed decreased by 89,000. Strong factory orders spurred employers to bolster their ranks led by luxury carmaker Bayerische Motorenwerke AG. Economists are predicting that the German labor market could potentially add 200,000 to 250,0000 new jobs in the…
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