Cable is coming under renewed pressure, presently at 1.6535. There is talk of EUR/GBP buy interest lined up for the New York fix later today. Much more disturbing for cable bulls though is talk of cable sales being lined up for the fix. This comes after talk yesterday and earlier today of buying interest lined up for todays fixings.
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Cable slumping lower
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June 30 2009, 4:06pm | Comments »
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Lloyds banking group axes further 2,100 jobs
It seems not a day goes by without us hearing more bad news on the UK jobs front. Today is no exception
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June 30 2009, 3:25pm | Comments »
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Dollar to rise most since 1981, best predictor says
Interesting piece from Bloomberg.
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June 29 2009, 10:17am | Comments »
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Technical difficulties in Sydney
Apologies for the delay but both Sam and I are experiencing technical difficulties here in Sydney. Hopefully back in full mode within the hour.
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June 18 2009, 4:36am | Comments »
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New York forex wrap-up; Dollar holds gains but not all
Fed unlikely to add to Treasury purchases, slow pace of existing program: WSJ Trichet: High level of uncertainty remains; prudent on economic outlook US import prices rise 1.3% in May, down 17.6% y/y BOE’s Dale: Inflation targeting should be “enhanced” German tax revenue falls 7.1% y/y in May Pimco’s El-Erian: Fed won’t hike this year; dollar to fall in coming years, Fed to keeping buying bonds. Ahmadinejad and challenger Mousavi both claim victory in Iranian presidential election 10 year notes end lower in yield at 3.79%; Oil closes at $72.30 S&P 500 closes flat
Another very choppy day within the familiar 1.3950/1.4150 (give or take 25 pips) range with the bottom of that range probed today before a rebound above the 1.4000 handle. EUR/USD fell to 1.3937 in early New York trade as the reflation trade suffered a set back. Oil fell below $71 intraday and and equities slumped early but both recouped sizable chunks of their losses to close only modestly lower on the day. EUR/US found demand from an Asian central bank and from a powerful NY investment bank at the 1.3940 level and the IB bought the pair up above 1.4000 before the rally stalled at 1.4040. US rela money accounts were sellers in the afternoon into strength for a second day running today. US and German names were buyers just below 1.4000 in thin afternoon markets. USD/JPY closed near its highs following on the heels of Japanese finance minister Yosano’s comments on his unshakable faith in US Treasuries and the week Japanese GDP report last night. It ended around 98.35. Cable jumped strongly late in London. News that only half the Barclays/Blackrock $13.5 bln deal for BGI will be in cash helped knocked the pound down to 1.6332 early on. It rallied above 1.6522 at midday and New York but ended softer at 1.6430 as EUR/GBP recovered from a tumble below 0.85. It slipped to 0.8482 on the London close but closed in New York at 0.8520.
June 12 2009, 11:00pm | Comments »
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Cable touch firmer early
Cable is a little firmer in early European trade, presently at 1.6345. General risk sentiment is in pretty good shape, while the USD is struggling as the realisation grows that we’re not likely to see an early US rate hike. Recent improved UK housing data and PM Brown’s political survival are other factors underpinning cable. Another factor at play is ongoing talk of positive M&A flows eminating from the proposed Barclays/Blackrock deal. Technical resistances now come at 1.6355/60 (which is being tested as I write) and then 1.6395/00.
June 10 2009, 8:50am | Comments »
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Risk sentiment helped by reports 10 US banks to repay TARP
Reports that the US Treasury is preparing to announce today that it will let 10 US banks buy back government shares is helping boost risk appetite, which is benefitting likes of euro, sterling, aussie and canadian dollar.
June 9 2009, 10:12am | Comments »
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Estonian PM: Does not expect devaluation in Latvia
The Estonian Prime Minister Andrus Ansip is in upbeat mood. He does not expect his Baltic neighbour Latvia to have to devalue the lat and sees signs the situation there is improving. He believes Latvia will continue to cut expenditures. Even if there were a Latvian devaluation, Ansip doesn’t see Estonia being affected. He remains confident in the Estonian banking sector. The comments will have lent EUR/USD some support, the pairing presently up at 1.3865.
June 8 2009, 3:15pm | Comments »
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EUR/USD extends sell off, but buy orders noted
EUR/USD has extended it’s early sell-off, presently at 1.3925 having just posted a 1.3917 session low. Risk sentiment doesn’t seem to be in very good shape; stocks oil down. Sources do however note some buy orders lined up at 1.3900 and then again quickly at 1.3885/90, which should at least help slow any further decline.
June 8 2009, 10:22am | Comments »
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A graphic view of the US labor market
The NY Times had this nice neat graphic view of the decline and bergening recovery in the US labor market.
June 7 2009, 12:57am | Comments »