Strong correlation intact between EUR and U.S. equities
Risk trade remains supported
U.S. Equity Indices targeting key resistance
Continue reading →

EUR lower on Ireland downgraded by S&P
BoJ’s Kamezaki talks up economy
Sterling higher on hawkish MPC chatter
Former SNB boss Roth defends intervention Continue reading →

The dollar failed to claw back any of its recent losses during the Asia session. EURUSD traded 1.3813-1.3862, and USDJPY 81.31-81.60. US equities closed up over 1% and Treasury yields pushed higher. The manufacturing ISM index rose much higher than expected to 60.8 in January versus consensus 58.0. Continue reading →

EUR and GBP test key resistance
Middle East tensions reducing
SNB’s Jordan talks down franc again Continue reading →

The dollar continued to weaken during the Asia session as yesterday’s risk-averse mood prompted by escalating tensions in Egypt subsided. The RBA kept both its policy rate and policy stance unchanged. EURUSD traded 1.3663-1.3730, USDJPY 81.76-82.15. Continue reading →

A distinct risk-off mood took hold at the Asia open after civil unrest in Egypt escalated over the weekend. Both the dollar and the yen initially found support on safe-haven demand, but sentiment soon steadied when no signs of a further deterioration in the political situation materialised. EURUSD traded 1.3571-1.3615, USDJPY 81.78-82.23. Continue reading →

The FOMC kept current policy unchanged, given it still has concerns about low inflation and a weak labour market. No dissenting votes were cast. Clearly, although regional Fed Presidents Plosser and Fisher have publicly expressed some misgivings about QE2, they are willing to go along with the existing asset purchase program for now at least. Continue reading →