Stocks are surging, oil is above $70, gold is back above $980 and the dollar is falling versus the majors except the yen. The global reflation trade is trumping good US-specific news in terms of the dollar. EUR/USD has reached 1.4265 thus far and USD/JPY 97.52. We are well above the 200-day average in that pair.
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Reflation trade on fire after payrolls
June 5 2009, 3:36pm | Comments »
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Quiet London session as markets focus on US Payrolls
- UK Pensions Minister James Purnell resigns and calls on Prime Minister Gordon Brown to quit too.
- UK Q1 Construction output falls 9 % q/q, ONS likely to revise Q1 GDP to -2.2% from -1.9% as a result.
- UK PPI meets expectations, factory costs fall at sharpest rate in 7 1/2 years.
- Swiss inflation falls by 1% y/y in May more than the market forecast of minus 0.9%
- Bundesbank slashes its 2009 growth contraction to minus 6.2 % from the 0.8% fall projected last December.
- ECB’s Hurley says that ECB has not taken any decision that current interest rate is the lowest
- ECB’s Trichet says ECB measures show some signs of a revival in European money market functioning. *SNB’s Hildebrand says will not hesitate to follow through with far reaching monetary policy actions A pretty quiet morning session in comparison of late with players squaring positions before the all important Non-Farm Payroll report. Cable was put under early pressure after the resignation of UK minister James Purnell and his call for Prime Minister Brown to step down. Cable reached a low at 1.6020 before buyers returned to push it up to the morning’s highs that we see now at 1.6095. Eur/Usd was also subdued with a gentle grind lower to 1.4150 from 1.4230 followed by a mild bounceback into the 1.4175 region. Continuing concerns over Latvia weigh. Usd/Jpy was buoyed by the continued rise in US bond yields to challenge selling interest in the 96.85/90 region.
June 5 2009, 2:08pm | Comments »
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WORLD FOREX: Dollar Mixed Ahead Of Payrolls, Pound Suffers
By Gary Stride Of DOW JONES NEWSWIRES LONDON (Dow Jones)--The dollar is mixed in light trade Friday with most players keeping to the sidelines ahead of the ...
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June 5 2009, 1:11pm | Comments »
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The Greenback Awaits the Release of the Nonfarm Payrolls
Today’s U.S. NonFarm Employment Change data release is set to dominate the trading between the Dollar and its major currency pairs. A number of other factors are also likely to impact the forex market today, such as European Central Bank Chairman Jean-Claude Trichet’s speech at 7:50 GMT, and the U.S. Unemployment Rate publication at 12.30 GMT. The results of today’s data are likely to determine the USD’s bullishness going into next week’s trading. The Dollar was down against the EUR Thursday after the European Central Bank’s (ECB) decision to keep the main Interest Rate at 1.0%. The Dollar Index also slipped to 79.446 from 79.499 on Thursday. Dampening demand for the Dollar in recent weeks has helped the U.S. stock market rise and global Oil prices jump to near $70 a barrel. Higher stocks have encouraged traders to take their positions out of the Dollar which is a major funding currency. Risk appetite among investors is improving which reduces demand for the Dollar. The USD is considered a safe-haven currency, a key to the currency’s strength during the financial crisis. The recent influx of positive economic news from the U.S, Europe and China reduced the desire for the safety of the greenback and pushed traders towards riskier, higher yielding currencies. The Dollar fell against the EUR., but rose against the Pound and JPY. The GBP/USD rate finished lower by nearly 140 pips at 1.6128.Against the EUR, the USD lost 30 pips to close at 1.4198. Overall there was little volatility in the market yesterday, ahead of the much anticipated May Non-Farm Employment Change and Unemployment Rate reports to be released today at 12:30 GMT. Positive news may help reverse some of the Dollar’s recent losses.
June 5 2009, 11:09am | Comments »
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