The dollar remained on the defensive throughout the Asia session as risk appetite continued to improve in the wake of the latest FOMC policy statement. EURUSD traded 1.4683-1.4882, USDJPY 81.62-82.50. Continue reading →

The dollar continued to weaken during the Asia session, ahead of today’s FOMC decision and the much anticipated inaugural post-meeting press conference. EURUSD traded 1.4626-1.4714, USDJPY 81.27-81.78. Continue reading →

The dollar got a boost when a major futures exchange raised silver margin requirements, prompting a wave of profit taking in gold and silver, which soon spread to FX markets, though ECB President Trichet also exerted an influence when he said a strong dollar is in the interests of the US. EURUSD traded 1.4494-1.4588, USDJPY 81.57-81.98. Continue reading →

The dollar managed to recoup some of its recent losses amid a quiet, pre-holiday session as risk sentiment was not as boisterous as earlier in the week. The Australian and New Zealand dollars held their ground versus the dollar but the other G10 currencies ceded ground as the session progressed. Equities finished modestly positive and longer-dated Treasury yields were moving up before the session ended early per the holiday. WTI and gold are $112.28 and $1505.23 at the time of writing. EURUSD traded 1.4533-1.4619, USDJPY 81.63-82.06. Continue reading →

The return of political economics gives rise to some concern as markets are generally bad at pricing political risk. The electoral calendar over the last two months has not tended to favour incumbents. This is perhaps not surprising given that the weak economic recovery is sufficient to reduce conservatism, while the sluggish labour market response has fostered a desire for change. A variety of votes lies ahead. We explore what’s in store in Portugal, the UK, Canada, Germany and Italy. Continue reading →

The dollar continued to weaken during the Asia session. Some positive US earnings reports were a factor in this, helping to keep risk appetite supported. However, given that USDJPY and USDCHF remained heavy too, a certain amount of general dollar negativity is also driving the price action. EURUSD traded 1.4486-1.4603, USDJPY 81.97-82.60. Continue reading →

Risk appetite steadily improved during the Asia session, as investors brushed aside S&P’s recent decision to lower the outlook on the US rating. Asian and US equities pushed higher, helped along by some solid US earnings reports. The dollar lost ground to all its G10 peers, except the yen. Japanese exports for March fell on an annualised basis for the first time in 16 months, largely a consequence of the recent earthquake and tsunami. Gold finally traded through $1500/oz. EURUSD traded 1.4314-1.4414, USDJPY 82.39-83.10. Continue reading →

Risk sentiment began to stabilise towards the end of the Asia session as the market fully digested the news of S&P’s decision to lower the outlook on the US AAA rating to negative. EURUSD traded 1.4206-1.4247, USDJPY 82.32-82.71. Continue reading →

The euro weakened after the euro-sceptic True Finns party won third place in Finland’s weekend election, raising doubts about whether a financial rescue of Portugal can go ahead as planned. EURUSD traded 1.4350-1.4450, and USDJPY 82.86-83.27 Continue reading →

The dollar initially strengthened against the EUR and the AUD after the Monetary Authority of Singapore tightened policy by less than expected. However, the dollar’s gains were quickly erased at the end of the Asia session when local media sources unofficially released a batch of China data ahead of time. CPI was slightly stronger than expected which raises the risk of further policy tightening. However, new loan growth and retail sales were strong, suggesting little sign of a slowdown in China and helping to boost global risk appetite. Continue reading →

FX price action was relatively subdued during the Asia session, given the lack of news and data flow. EURUSD traded 1.4455-1.4498, USDJPY 83.51-84.20. Continue reading →