Daily Forex Snap-Shots

Asian Session: NFP’s disappoint as ECB stays put on rates – low volumes today for 4th July holiday.

Philippe Meyer — Fri, 03 Jul 2009 11:23:52 GMT

G10 Advancers and Decliners vs USD
	JPY	0.103
	EUR	-0.098
	CHF	-0.178
	GBP	-0.272

NFP’s disappoint by showing a -467K decline in payrolls, 100K more than the consensus. This underlines the vast layoffs from the GM and Chrysler debacle and the continuing difficulty to revive the economy. The EURUSD dropped from it’s high 1.41’s as low as 1.3930 before rebounding. While the pair broke it’s range momentarily only a healthy breakout below the 1.3900 support will prove sufficient...

US Session: Risk Aversion Boosts Demand for the Dollar after Worse-Than-Expected Payroll Number

Peter Rosenstreich — Thu, 02 Jul 2009 17:51:17 GMT

G10 Advancers and Decliners vs USD
	GBP	-0.62
	CHF	-0.84
	EUR	-0.94

The dollar strengthened across the board as the worse-than-expected non-farm payroll number prompted traders to steer away from high-yields. The EurUsd continues its losing streak thanks to the dollar strength, dipped 160pips from yesterday’s high to 1.40 as downward momentum was represented by declining RSI. The GbpUsd fell 100pips and consolidated around 1.63, registered a three-day drop of...

Asian Snap: China revives the reserve currency debate and pushes for more Forex diversification – NFP’s and ECB rate decision loom.

Philippe Meyer — Thu, 02 Jul 2009 10:31:00 GMT

G10 Advancers and Decliners vs USD
	JPY	-0.263
	EUR	-0.431
	CHF	-0.591
	GBP	-0.934

Vice foreign minister He Yafei said yesterday that he wasn’t aware that China had asked the issue of a global reserve currency to be on the agenda for next week’s G8 summit. This saw the dollar drop, sending the EURUSD to a high of 1.4201. Despite the consternation at the minister’s misinformation his comments on the need for a more stable and potentially non-sovereign global reserve currency...

US Session: The Dollar Declines on the ISM Report, Combined with Positive Data from China and Germany

Peter Rosenstreich — Wed, 01 Jul 2009 18:09:40 GMT

G10 Advancers and Decliners vs USD
	SEK	1.47
	CAD	1.36
	JPY	-0.27
	NZD	-0.43

The dollar declined against majors as another green shoot from the ISM report prompted traders to move into higher-yields, buoyed by positive data rolled out from China and Germany. The EurUsd rose sharply by 110pips to 1.41, gaining support from the German retail sales number, which increased more than expected by 0.4% vs. -0.1% forecasted. The GbpUsd traded sideways in early trading, but rose...

Asian Session: Mixed Tankan only rattles but doesn’t shake newfound optimism – Asia trades sideways.

Philippe Meyer — Wed, 01 Jul 2009 11:24:40 GMT

G10 Advancers and Decliners vs USD
	CHF	0.1464
	EUR	0.1153
	GBP	-0.2095
	JPY	-0.4883

Asian markets traded sideways this morning as risk aversion returns as US consumer confidence figures. The Nikkei 225 was down -0.19% and the Hang-seng posted a -0.81% decline. The business sentiment in Japan improved from March’s reading and is expected to improve further in September. This said the Tankan failed to offer signs of a “broadening” or “self-sustained” economic recovery. The USDJPY...

US Session: Weak Economic Data in US and UK Hamper Green Shoots Theory Leading to Dollar Strength

Peter Rosenstreich — Tue, 30 Jun 2009 22:07:18 GMT

G10 Advancers and Decliners vs USD
	JPY	-0.28
	CHF	-0.35
	EUR	-0.36
	GBP	-0.66

The dollar appreciated against most of the G10 following a series of worst than expected economic news in the US and the UK. The EurUsd fell 41pips to the mid range of 1.40, while the UsdJpy added 25pips hovering above 96. The GbpUsd slid 100pips back below 1.65 a moderate pullback considering recent price action. Equity markets are negative in the US and Europe with the Dow lower by 1% or...

Asian Session: Chinese manufacturing data encourages while Japanese jobless data inline with expectations.

Philippe Meyer — Tue, 30 Jun 2009 11:21:38 GMT

G10 Advancers and Decliners vs USD
	GBP	0.8067
	JPY	0.3962
	CHF	0.3478
	EUR	0.2117

The Bank of China Gov. Zhou Xiaochuan said yesterday that the economy accelerated in the second quarter and that he expected the government’s 8% growth forecast was going to be met. Further data showed that during the month of June electricity consumption jumped by 3.8% from a year before. Reports from a large bank in the region stated that manufacturing activity had accrued in the month of June...

US Session: Dollar Strengthens on China’s Central Bank’s Comment, Easing Concerns on the Dollar Reserve Status

Peter Rosenstreich — Mon, 29 Jun 2009 22:17:00 GMT

G10 Advancers and Decliners vs USD
	SEK	1.57
	NZD	0.78
	CAD	-0.43
	JPY	-0.85

The dollar traded in the positive territory against most majors after China’s central bank Governor Zhou Xiaochuan ruled out any “sudden” change in the central bank’s reserve policy, easing concerns over the dollar reserve status. The EurUsd pared early losses and traded upward, gaining 5pips from the previous session after a report showed improvements in euro-zone’s economic sentiment. The...

Asian Session: China and Brazil discuss bypassing the dollar for international trade – currency markets remain slow.

Philippe Meyer — Mon, 29 Jun 2009 11:25:40 GMT

G10 Advancers and Decliners vs USD
	GBP	-0.075
	JPY	-0.338
	EUR	-0.525
	CHF	-0.707

The BIS’ annual general meeting this weekend saw the emergence of talks between China and Brazil on how to bypass the dollar for trade between the two countries. The premise for this agreement is to limit the importance of the U.S dollar as the dominant global reserve currency, one analyst saying the substantial debt the U.S had incurred during the crisis that originated on it’s shores would be a...

US Session: The Dollar Slides Against the G10 As Risk Appetite Benefits From Positive Economic News

Peter Rosenstreich — Fri, 26 Jun 2009 19:01:56 GMT

G10 Advancers and Decliners vs USD

The dollar declined against both the euro and the yen, falling to $1.4085 from $1.3988 per Euro and ¥95.57 to ¥95.95 per USD from yesterday, respectively. The pound gained for the first day in three versus the dollar, rising 0.7% to $1.6483 as of 2:15 p.m. in London as rising risk appetite spurred demand for riskier assets such as stocks listed on FTSE 100 Index and FTSE 350 Banks...

US Session: Improved Risk Appetite Following Shaky Press Release Following FOMC

Peter Rosenstreich — Thu, 25 Jun 2009 20:55:32 GMT

G10 Advancers and Decliners vs USD
	NZD	0.39
	CHF	-0.01
	GBP	-0.55
	JPY	-0.58

Risk appetite receded after initial jobless claims rose to 627k vs. 600k forecasted, fueling the post-FOMC dollar rally. Dow futures pointed lower after the data release. The bearish tone from the Fed’s announcement yesterday buoyed taming expectations of a recovery. The tone in the FX market is mixed with dollar strenth early but somewhat of a reversal as the session progressed mostly due to...

US Session: Dollar Resumes Downward Trend After Session of Profit-Taking

Peter Rosenstreich — Tue, 23 Jun 2009 21:29:20 GMT

G10 Advancers and Decliners vs USD

The dollar declined against most of the G10 as investors and Traders resumed diversification out of dollar denominated assets and into higher yielding instruments. . Equity markets are slightly higher in the US and marginally higher overseas in Europe. This activity is likely to be fairly neutral due ahead of the FOMC meeting tomorrow and several other smaller economic data points. Price...

Asian Session: Commodity Prices in Decline

Peter Rosenstreich — Tue, 23 Jun 2009 11:38:55 GMT

G10 Advancers and Decliners vs USD
	JPY	0.70
	CHF	0.25
	EUR	0.20
	GBP	-0.30

The sharp drop in risk appetite has been attributed to the World Bank’s cut in its growth forecast. Yesterday the World Bank downgraded revisions to global growth predicting a contraction of 2.9% was significantly below the 1.7% forecasted in March. In addition the World Bank warned that it envisioned a deeper global economic recession this year and called for 'bold' policies and further...

US Session: Risk Aversion Trade Back In Play As Investors Await Treasury Auction and FOMC

Peter Rosenstreich — Mon, 22 Jun 2009 21:39:16 GMT

G10 Advancers and Decliners vs USD
	CHF	-0.47
	EUR	-0.52
	GBP	-0.93

The U.S. Dollar saw mixed movement today as it rose against Sterling in anticipation of Wednesday’s FOMC meeting where decisions will be made regarding Treasury purchases. The EurUsd fell from 1.3934 to 1.3824 as the World Bank said the global recession would worsen 2.9% in 2009.The GbpUsd saw some volatile movement, jumping between 1.64 and 1.65, with an overall decline of 0.89%. The UsdJpy fell...

Asian Session: Slow Start to the Trading Week

Peter Rosenstreich — Mon, 22 Jun 2009 10:34:49 GMT

G10 Advancers and Decliners vs USD
	JPY	0.21
	GBP	-0.31
	CHF	-0.63
	EUR	-0.68

The USD was stronger in the Asian session, as risk barometers, such as AUD, point to a decline in FX risk appetite. The EURUSD traded down to 1.3660 from 1.3960, while the USDJPY, in choppy trading, traded between 96.30 and 95.80. Commodity prices were also softer, with crude wti trading below the $70.00bll level. Markets have been debating whether the momentum of Chinese commodity stockpiles has...

US Session: Sweeping US Financial Regulations May Crimp Corporate Profits Sending the Dollar Lower

Peter Rosenstreich — Fri, 19 Jun 2009 23:10:51 GMT

G10 Advancers and Decliners vs USD
	AUD	0.89
	NZD	0.74
	SEK	-0.03
	CAD	-0.30

The dollar declined versus most of the majors only gaining ground against the Cad. The EurUsd added roughly 60pips trading at the mid range of 1.39, while the UsdJpy slipped 30pips finding support at 96. The most active pair in the G10 was the GbpUsd a consistent theme in FX trading over the last several sessions. The Sterling rallied 179pips breaking through 1.65 as Traders look to establish...

Asian Session: Risk Appetite Returns Slowly

Peter Rosenstreich — Fri, 19 Jun 2009 10:57:41 GMT

G10 Advancers and Decliners vs USD
	GBP	-0.12
	CHF	-0.27
	EUR	-0.32
	JPY	-0.44

The USD traded broadly higher in the Asian session after a stronger move in early trading. According to Reuters, the British Bankers' Association (BBA) stated that it would allow more financial institutions to take part in the daily survey, which fixes the London interbank offered rate. Market interpreted this change as USD positive, since there is the belief that higher fixings would increase,...

USSession: Financial Markets Attempt to Rebound on Hints of Positive Economic Data out of the US

Peter Rosenstreich — Thu, 18 Jun 2009 23:06:50 GMT

G10 Advancers and Decliners vs USD
	EUR	-0.32
	GBP	-0.44
	CHF	-0.63
	JPY	-0.78

Employment data out of the US lifted equity futures into positive territory. Initial jobless claims were slightly worse than expected at 608k vs. 604k, while continuing claims declined for the first time since January. Investors continue to struggle with clues to confirm the timing a recovery, inflation fears may take a temporary backseat as the Fed is expected to release a statement to add...

Asian Session: Markets Watching EURCHF

Peter Rosenstreich — Thu, 18 Jun 2009 12:31:06 GMT

G10 Advancers and Decliners vs USD
	CHF	0.14
	EUR	-0.05
	GBP	-0.28
	JPY	-0.30

The USD was stable in the Asian session, on light volumes. The EURUSD and USDJPY traded in relatively tight ranges of 1.3920-1.3970 and 95.60-96.00, respectively, despite the fact that general risk appetite continues to struggle. Mounting negative news has yet to see follow through into the USD, making us consider the decline of the risk aversion trade. The EURCHF was able to push down to 1.5020...

US Session: Dollar Weakens Amid Fading Inflation Concern

Peter Rosenstreich — Wed, 17 Jun 2009 23:50:14 GMT

G10 Advancers and Decliners vs USD
	DKK	0.78
	NOK	0.67
	GBP	-0.07
	SEK	-0.19

The dollar fell against the euro and yen due to economic announcements out of the US. Inflation remains a key concern in the global financial environment, and both Traders as well as Investors are watching indicators like CPI and PPI closely. CPI came in less than expected at 0.1% vs. 0.3% forecasted lessening concerns that the Fed may increase rates by year end. The EurUsd climbed 114pips to...

US Session: Comments from Russia Prompt Dollar Weakness, Aided by Better Housing Data

Peter Rosenstreich — Tue, 16 Jun 2009 23:22:02 GMT

G10 Advancers and Decliners vs USD
	CAD	0.09
	AUD	0.08
	GBP	-0.07
	NZD	-0.07

The dollar weakened against most majors as the Russian President Dmitry Medvedev said that the world needs new reserve currencies, putting pressure on the dollar. The EurUsd rose 130pips, hovering around the 1.39 level. The UsdJpy fell to 96.618 while the GbpUsd gained 188pips on the back of the broad decline in the dollar. Equity markets remained flat in the US and Europe session with the Dow up...

Asian Session: Cautious Ahead of BRIC Summit Today

Peter Rosenstreich — Tue, 16 Jun 2009 11:06:18 GMT

G10 Advancers and Decliners vs USD
	JPY	1.47
	EUR	0.50
	CHF	0.40
	GBP	0.35

The USD gave back some of its recent gains in the Asian Session. The EURUSD traded higher to 1.3877 from 1.3760, while the USDJPY traded lower to 96.08 from 97.80. JPY crosses came under significant selling pressure, as risk appetite continues to deteriorate. The EURJPY traded to 132.75 low, while the AUDJPY slid to 76.07 from 77.50. Markets will be cautiously watching today’s BRIC summit....

US Session: Dollar rallies on positive G8 meeting, driving risk-averse behavior

Peter Rosenstreich — Tue, 16 Jun 2009 00:31:59 GMT

G10 Advancers and Decliners vs USD
	CAD	0.08
	GBP	-0.09
	CHF	-0.13
	EUR	-0.14

The dollar rose against a basket of currencies following a resurgence of risk aversion in the market. The EurUsd fell 185pips while UsdJpy gained. The GbpUsd fell 113 pips.; Equity markets fell 2.06% or 181.16pts and the FTSE was down 2.61% or 115.94pts. The yield curve on 10 year US treasury notes fell .07% to 3.74%. Commodities were weaker today with oil finding support at $70bbl and gold...

Asian Session: Macro Themes Driving FX

Peter Rosenstreich — Mon, 15 Jun 2009 11:17:13 GMT

G10 Advancers and Decliners vs USD
	JPY	0.06
	GBP	-0.99
	EUR	-1.05
	CHF	-1.21

The USD was firmer in the Asian session, as broader macro events have dampened risk appetite. The EURUSD was range bound between 1.4033 and 1.3920, while the USDJPY was in a range of 98.55 and 98.10. Over the weekend, in response to UN sanctions, N. Korea responded by saying that they will move towards enriching plutonium and uranium for military usage. The G8 finance ministers meeting wrapped up...

US Session: Dollar Strengthens Broadly on Improving Consumer Sentiment as Gold Slumps and Euro under Pressure by Record Weak Eurozone Output Data

Peter Rosenstreich — Fri, 12 Jun 2009 18:23:50 GMT

G10 Advancers and Decliners vs USD
	EUR	-0.55
	CHF	-0.57
	JPY	-0.59
	GBP	-0.59

The dollar pared losses from the previous session and extended gains across the board as gold plummeted to $938oz and investors took profits on the dollar’s recent decline. The EurUsd fell 134pips testing 1.39 as a point of resistance, while the UsdJpy rose to 98.29 level after reaching 98.42 earlier. The GbpUsd saw a correction after testing the 1.66 level yesterday, tumbling to $1.6379. U.K....

Asian Session: Chinese "Green Shoots"

Peter Rosenstreich — Fri, 12 Jun 2009 11:38:29 GMT

G10 Advancers and Decliners vs USD
	GBP	0.10
	EUR	0.06
	CHF	0.03
	JPY	-0.20

The Usd was weaker in the Asian session.The EurUsd traded between 1.4060 and 1.4125, while the UsdJpy traded between 97.45 and 97..98. Asian regional indexes are trading higher, as risk appetite is slow returning to the market. Currently, crude is at $72.40bll and gold at $953.68oz.. The last auction of the week passed without incident, as the 30y auction recorded a bid-to-cover ratio of 2.68 and...

US Session: Central Banks Keep Rates on Hold in Europe and Asia Putting Pressure on the Dollar

Peter Rosenstreich — Thu, 11 Jun 2009 20:29:45 GMT

G10 Advancers and Decliners vs USD

The dollar fell against most of the G10 as central banks in Europe and Asia decided to keep rates on hold. The EurUsd rose 160pips to the mid range of 1.41, while the UsdJpy slipped 60pips to 97.50. The GbpUsd skyrocketed 230pips testing the 1.66 level, a consistent trend with the majors today. Equity markets performed positively in Europe and have maintained a upward momentum in the US...

Asian Session: RBNZ Holds Rates at 2.50%

Peter Rosenstreich — Thu, 11 Jun 2009 11:19:25 GMT

G10 Advancers and Decliners vs USD
	JPY	0.46
	GBP	0.31
	EUR	-0.04
	CHF	-0.10

The Usd was range bound in the Asian Session. The EurUsd traded between1.3940-1.4060 and the USDJPY traded from a high of 98.30 to a low of 97.75. Asian regional indexes are flat following Wall Street's lower close. Crude prices continue to strengthen rising to a 7 month high of $72.16bll. Yesterday's US 10yr auction was not a smashing success but still managed bid-cover ratio and awards to...

US Session: Dollar Volatile as Investors Watch Interest Rate Markets Closely

Peter Rosenstreich — Wed, 10 Jun 2009 18:04:04 GMT

G10 Advancers and Decliners vs USD
	AUD	0.17
	CHF	-0.39
	EUR	-0.70
	JPY	-0.83

Dollar extended declines against most major currencies as encouraging economic data reduces the demand for safe haven currencies. Euro climbed back above $1.41 due to positive economic data of the bloc. Sterling dropped early in the session but rebounded robustly later following better-than-expected UK industrial output number. The GBP is trading at $1.638 at 9:40 am, up nearly 2% for the weak....

Asian Session: USD Weakness Resumes

Peter Rosenstreich — Wed, 10 Jun 2009 11:41:36 GMT

G10 Advancers and Decliners vs USD
	GBP	0.79
	EUR	0.67
	CHF	0.45
	JPY	-0.08

As discussed in earlier reports, we believed that the pricing in of a Fed rate hike in late 2009 was premature. It seems that the markets are now in agreement. The USD was weaker across the board in the Asian session, as risk appetite returned (regional equity indexes were broadly higher).The EurUsd traded up to 1.4130 from 1.4060, while the UsdJpy slid to 97.10 before rallying back to 97.60....

US Session: Financials Approved to Repay TARP and Treasury Auction Was Successful Causing the Dollar to Retreat on Higher Risk Appetite

Peter Rosenstreich — Tue, 09 Jun 2009 23:10:54 GMT

G10 Advancers and Decliners vs USD

The markets in the U.S. and the Europe are cheering up on growing positive risk appetite, but with conservative optimism shown in the U.S. Treasuries market. Even though Fed funds futures contracts show a 58% probability of a rate increase by November Futures on S&P 500, the Dow and Nasdaq-100 all advanced on speculation the Federal Reserve will hold off on raising interest rates this year as...

Asian Session: Market Jitters

Peter Rosenstreich — Tue, 09 Jun 2009 08:31:15 GMT

G10 Advancers and Decliners vs USD
	JPY	0.32
	GBP	0.13
	CHF	-0.01
	EUR	-0.11

The USD strengthened in Asian session as the S&P downgraded Ireland's sovereign credit rating for the second time in three months prompting risk aversion trading. The dollar Index climbed back above 80, a crucial level as more and more economic data indicates that the worst of recession is over. Investors’ appetite for gold also seems to be waning as Turkey, one of world’s leading gold...

US Session: Traders Brace for Possible Stagflation as Rates Rise Faster than Economic Growth

Peter Rosenstreich — Mon, 08 Jun 2009 20:11:11 GMT

G10 Advancers and Decliners vs USD
	CAD	0.01
	EUR	-0.42
	CHF	-0.43

The dollar moves higher against most of the major currencies after a drop in stocks stimulated demand for the safety of the world’s main reserve currency, and investors raised bets the Federal Reserve will increase interest rates by the end of the year after the Labor Department said June 5 that U.S. payrolls fell by 345,000 last month, the smallest decrease in eight months. The EurUsd lost 105...

Asian Session: USD Buying Continues

Peter Rosenstreich — Mon, 08 Jun 2009 10:29:27 GMT

G10 Advancers and Decliners vs USD
	JPY	-0.43
	EUR	-1.07
	CHF	-1.17
	GBP	-1.20

The Usd was stronger in the Asian session, as the mixed US data has given recovery bulls a moment of pause. The EurUsd traded down to 1.3890 from 1.4000, while the UsdJpy rose sharply to 98.80 from 98.20 (now trading above daily cloud covering). Commodity prices have also retreated, with copper and crude falling from yearly highs. And 2-year Treasury yields surged by 35bp to 1.29%, while 10-year...

US Session: Dollar Rebounds Off NFP Data While Political Controversy Hurts Sterling

Peter Rosenstreich — Fri, 05 Jun 2009 20:01:16 GMT

G10 Advancers and Decliners vs USD
	GBP	-1.06
	EUR	-1.29
	CHF	-1.52
	JPY	-1.70

The USD saw a brief downturn against a basket of currencies following the release of U.S. unemployment numbers for May, but began to rally shortly thereafter. . The U.S. dollar index dropped to 79.33 following the reported 345k jobs lost; much better than the 520k forecast. The labor department said the unemployment rate rose to 9.4%, the highest since July 1983. The EurUsd saw a sharp decline...