Posts Tagged ‘EUROPE’

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US Dollar Makes a Break to 16-Month Highs as Fear Creeps In

US Dollar Makes a Break to 16-Month Highs as Fear Creeps In Fundamental Forecast for the US Dollar: Bullish CPI and retail sales do little to alter the outlook for rates and growth The 10-year Treasury Yield pushes towards a fresh record low, shrinking the dollar’s return USDollar breaks to a 16-month high Though the benchmark currency eased back into the final 48 hours of this past trading week, the dollar nevertheless posted another impressive run through the entire period.

Published by on May 19th, 2012 at 12:05 am
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Gold Outlook Rests on G8 Summit, Eurozone PMIs and US Survey Data

Fundamental Forecast for Gold: Neutral Gold prices mounted a swift recovery toward the end of last week as fears of a spreading crisis in the Eurozone and disappointing US economic news drove demand for alternative stores of value. An unexpectedly soft Philadelphia Fed print dented hopes that an accelerating US recovery will offset headwinds to global growth from sluggish conditions in Europe and Asia. The outcome marked only the second bit of significant data from the May set of activity surveys, tarnishing positive cues from the Empire Manufacturing print earlier in the week and pulling gold higher on inflation-hedge buying as traders sized up the uneven performance with minutes from the Fed’s April policy minutes.

Published by on May 18th, 2012 at 09:05 pm
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USD Index Carving Top In May, AUD Eyes November Lows

Index Last High Low Daily Change (%) Daily Range (% of ATR) DJ-FXCM Dollar Index 10117.01 10154.53 10106.53 0.03 104.88% The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar ) remains 0.03 percent higher from the open after moving 105 percent of its average true range, and we may see the greenback consolidate throughout the North American trade as hopes surrounding the G8 Summit props up market sentiment. However, as the EU struggles to meet on common ground, there’s certainly limited scope of seeing something done on a global scale, and we should see the flight to safety gather pace in the days ahead as the heightening risk for contagion saps risk-taking behavior.

Published by on May 18th, 2012 at 09:05 am

BoE Cites Increased Risk of Disorderly Euro Outcome as Greatest Threat to UK

The Bank of England’s monthly inflation report released today said inflation is expected to fall down below the bank’s target of 2% over the next two years. However, the report added that inflation risks have recently risen over the short term as political instability in Europe threatens the single currency’s future. “The possibility that the substantial challenges within the Euro area will lead to significant economic and financial disruption continues to pose the greatest threat to the UK recovery,” the report said

Published by on May 16th, 2012 at 03:05 am

Pound Eyes BOE Minutes, Dollar Looks to Fed Minutes to Drive Rally

Talking Points US Dollar, Japanese Yen Outperform as New Greek Elections Spark Risk Aversion British Pound Looks Past Jobless Claims Data, Focusing on BOE Inflation Report Slower Eurozone CPI May Compound Euro Selling on ECB Easing Expectations FOMC Meeting Minutes May Dent QE3 Expectations, Adding Fuel to Dollar Rally The US Dollar and Japanese Yen pushed broadly higher overnight as stock prices collapsed, boosting demand for the go-to safe haven currencies. The MSCI Asia Pacific regional benchmark equity index slumped 2.5 percent as continued gridlock in Greece spurred the country’s lawmakers to call for new elections, which traders fear may produce a ruling majority for anti-austerity parties (and in particular, Syriza). This threatens to lead Athens to renege on its obligations under the EU/IMF bailout agreement, which may ultimately see the country leave the Eurozone and possibly even the wider EU.

Published by on May 16th, 2012 at 02:05 am
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