Posts Tagged ‘forex’

RBA cuts Aussie interest rates to 3.25% as traders continue to feed off scraps

Tuesday, October 2nd, 2012

Mike Paterson’s Daily Forex Brief

A few hours ago the Reserve Bank of Australia cut interest rates by 0.25% to 3.25% citing downside risks to the Chinese and global outlook, lower commodity prices generally, and noting that the Aussie dollar has remained higher than expected.

The move this time around by the RBA was not widely expected and we’ve seen some AUD selling on the back of it. (more…)

All change! It’s risk off again after traders focus on poor PMI readings

Monday, October 1st, 2012

Mike Paterson’s Daily Forex Brief

Mr. Feel-Good factor was soon running for the exits again on Friday as the poor Chicago PMI (Purchasing Managers Index) reading of 49.7 versus the 52.8 forecast was the lowest in three years, and added to the poor PMI data currently coming out from around the globe.

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Risk on again as Spain delivers austerity budget and hints at ESM request

Friday, September 28th, 2012

Mike Paterson’s Daily Forex Brief

Spain yesterday duly delivered its much anticipated austerity budget for 2013, which did little to inspire the markets but then comments by Finance Minister Guindos, hinting at an imminent official bail-out request, gave traders renewed hope.

The austerity budget seems to have satisfied the Eurocrats in going beyond expectations but will do little to quell the unrest amongst the masses (more…)

Markets brace themselves for further turmoil

Thursday, September 27th, 2012

Mike Paterson’s Daily Forex Brief

It’s been another cagey 24 hours as traders await the details of the Spanish austerity package today, trying to second guess when Spain will finally put its hand out, while witnessing continuing unrest on the streets of Madrid.

Spanish bond yields have risen amidst the gloomy back drop of a potential sovereign debt downgrade, itchy feet in Catalonia, (more…)

A mixed bag but spotlight firmly back on Spanish and Greek unrest

Wednesday, September 26th, 2012

Mike Paterson’s Daily Forex Brief

We’ve seen some volatile trading in the past 24 hours with the Euro first rallying on better than expected US data but later falling again as Spanish protesters clashed with police in Madrid, resulting in an estimated 64 people injured.

This risk-on risk-off scenario shows how nervous these markets are and rightly so. These are unprecedented times and discretion must very much be the better part of valour, both in business and FX trading. (more…)

Euro under pressure again as fallout fears return

Tuesday, September 25th, 2012

Mike Paterson’s Daily Forex Brief

The Euro has come under further pressure as traders fear the fallout from a Greek national strike tomorrow and the results of the Spanish stress tests on Friday.

On top of those events come meetings between German Chancellor Merkel and ECB President Draghi today and IMF head Lagarde tomorrow. (more…)

Spain and Greece remain centre-stage but markets pause for breath

Friday, September 21st, 2012

Mike Paterson’s Daily Forex Brief

It’s been a distinctly less than interesting 24 hours range-wise with Greece and Spain continuing to dominate the news wires but little of substance for traders to feed off.

The Euro had a brief rally when reports had Spain lined up to officially ask for aid as early as next week, and Greece seems to be winning a few friends in the Troika (ECB, EU, IMF) with talk of an agreement maybe as early as today, but we didn’t hold up there for long. (more…)

Euro rallies then dives again as Greece sells the family silver

Thursday, September 20th, 2012

Mike Paterson’s Daily Forex Brief

A lively 24 hours with first a dip in the Euro as Eurozone fears continued to rise, but then we saw a concerted rally as the buyers won the day and forced the shorts to run for cover.

But news of Greece starting to sell off the family silver put the skids under it again and then overnight poor Chinese PMI added to the risk-off sentiment as traders once again ran for cover. (more…)

Euro falls but finds buyers in the dips and Japan increases QE

Wednesday, September 19th, 2012

Mike Paterson’s Daily Forex Brief

The Euro did indeed come lower yesterday as I discussed but there seems to be enough buyers in the dips right now to prevent any major move south.

EURUSD fell through the first support at 1.3050 soon enough but then took its time to challenge the next decent line around 1.3020-30 whereupon we found some buyers happy to pick a few cheap ones up, (more…)

Euro under scrutiny again as Spanish bailout questions loom ever larger

Tuesday, September 18th, 2012

Mike Paterson’s Daily Forex Brief

The geo-political unrest around the globe not withstanding we’ve also seen a correction in the Euro as I suggested we might.

Yes the Yen’s weakened too as the anti-Japan protests spread across China but this morning’s comments from the Spanish Deputy PM that they’re still considering the conditions of a bailout shows an element of stalling. (more…)

It’s still risk-on sentiment but for how long?

Monday, September 17th, 2012

Mike Paterson’s Daily Forex Brief

Markets have continued to remain buoyant through Friday and over the week-end but amidst an increasing back-drop of global political unrest can the move be sustained this week?

EURUSD had moved up to 1.3168 on Friday but has since settled down into a 1.3100-1.3150 range as traders re-assess while GBPUSD has been up to 1.6247 before similarly settling back. (more…)

Bernanke delivers QE3+ and traders sell Dollars again

Friday, September 14th, 2012

Mike Paterson’s Daily Forex Brief

Fed Chairman Ben Bernanke yesterday delivered the much anticipated monetary easing, aka QE3, and we’ve seen further USD weakness as traders fully assess his action and statements.

The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt (more…)