Tuesday's meeting of trade was certainly a wild USD gains across the Board, the first on the back of the China interest rate hike and then some more after a number of official speaker acceleration. Officials all over the place with their Viewstowards QE2, with some approval were fed some strongly opposed and comment on other rejection. Meanwhile, Trichet ECB was statistics out with some comments about the State of the euro area, while Rehn commented rising imbalances EU. Elsewhere, the news that a purchase of Bank of America tried PIMCO and the New York Fed his defective mortgage was not seen help, investor sentiment prop weighed by all means, with U.S. stocks are more on the story. Overall, slow fear that a rise in interest rates would China comments from Fed officials which indicates less certainty about the prospects for QE2, renewed concerns about the euro-zone economy down the global economy, and a restart of the old in the form of toxic assets, troubles helped everyone to this latest wave of risk aversion and flight back to USD contribute $. The European open markets since have recovered somewhat, but we would buy actual demand rather than moved more than consolidation classified again in danger. Interestingly, we are somewhat surprised to see the yen still very well buy bid despite the latest wave of broad-based USD. While we are aware of the fact that traditionally the yen has benefited in these environments in recent times, correlations about the dollar more and less on everything else been. As such one might suggest stronger dollar that translate into a much weaker Yen at the current level that the yen still looking to try and break this record highs against the buck buck 1995. German producer prices are looking ahead (0.2% expected) out at 6: 00GMT, followed by a number of UK data a little later on 8: 30GMT. Eagerly awaited Bank of England Protocol, M4 money supply (expected 0.3%), public finances (expected 15.3B) and public sector net borrowing (expected 14.5B) includes data from the United Kingdom. The official circuit is ECB Constâncio planned on 6: 30GMT, followed by ECB stark later in the session on 10: 00GMT to speak. Managed U.S. equity future and commodities prices to recover a little since Tuesday close, but we expect to see some more sale in rallies. Posted by Joel Kruger, technical currency strategist if in time to get more, Joel reports jskruger@fxcm.com and you will be added e-Mail to the distribution list. When you visit this or any other subject feel to free our forum page want to discuss.
No comments:
Post a Comment