Daily Forex Snap-Shots

Risk Assets Take a Dive

Léa Torbey Meouchi — Wed, 16 May 2012 09:16:49 GMT

G10 Advancers and Decliners vs USD
	GBP	-0.20
	JPY	-0.26
	EUR	-0.29
	CHF	-0.30

In reaction to news of the failed talks with president Karolos over the formation of a coalition government for Greece yesterday afternoon, the EUR dipped to its lowest level in four month, the positive economic data out of Germany notwithstanding. The European situation combined with the sharp decline in Japanese Machinery Orders by 2.8% and a stagnation of Australian consumer confidence near...

AUD Minutes More Dovish Than Anticipated

Léa Torbey Meouchi — Tue, 15 May 2012 09:23:33 GMT

G10 Advancers and Decliners vs USD
	EUR	0.19
	CHF	0.18
	GBP	0.09
	JPY	-0.02

The Yuan fell against the USD reaching 6.3181 at 06:00 GMT, as Chinese foreign direct investment declined for a six consecutive month. The falling FDI is compatible with a series of economic data such as last week's worse than expected Fixed Asset Investments and a feeble trade balance missing its import and export targets by a long shot. As can be expected, FDI from the European Union declined...

Socialists Win Again

Léa Torbey Meouchi — Mon, 14 May 2012 09:58:05 GMT

G10 Advancers and Decliners vs USD
	GBP	-0.09
	JPY	-0.13
	EUR	-0.25
	CHF	-0.26

FX risk appetite was weaker in the Asian session German chancellor Merkel's CDU suffered a big loss in state elections against the Social Democrats. This is the second electoral victory for European socialist parties in a week as Francois Holland won the French presidential on May 6. The blow to Merkel’s party and coalition might signal an alignment of the voters to Hollande’s anti-austerity...

FX Still Focused on Greece

Léa Torbey Meouchi — Fri, 11 May 2012 09:03:47 GMT

G10 Advancers and Decliners vs USD
	JPY	0.12
	CHF	-0.13
	EUR	-0.13
	GBP	-0.20

Risk appetite remained soft but USD failed to make any significant gains without further support from European negative news. Asia’s regional indices are in the red with the Nikkei down -0.60%, the Hang Sang -1.22%, and the Shanghai composite falling -0.29%. Chinese data failed to lift risky assets as industrial Production printed lower than expected at 9.3% vs. 12.2% expected and retail sales...

Asia Data a Temporary Distraction

Léa Torbey Meouchi — Thu, 10 May 2012 10:37:29 GMT

G10 Advancers and Decliners vs USD
	EUR	0.16
	CHF	0.15
	GBP	0.11
	JPY	-0.08

While Greek and European headlines remain the key driver for FX pricing, for a moment the focus was on Asia regional data. In China, the April trade surplus was a better than expected at $18.4bn vs. $5.4bn in March, but the uninspiring export growth and flat import did nothing to encourage the global growth story and risky assets sold-off. Australia data painted a slightly more optimistic picture...

USD Rally Continues

Peter Rosenstreich — Wed, 09 May 2012 09:33:14 GMT

G10 Advancers and Decliners vs USD
	JPY	0.11
	GBP	-0.13
	EUR	-0.15
	CHF	-0.16

FX risk appetite continued to erode in the Asian session, as the political events in Europe injected a high level of uncertainly into the stability of the region. The risk sell-off deepened as the wires carried a headline from Syriza leader Alex Tsipras that he will annul the Greek bailout agreement if he can form a coalition government. With news flow on the light side this morning and no...

Spanish Banks in Focus

Peter Rosenstreich — Tue, 08 May 2012 09:18:14 GMT

G10 Advancers and Decliners vs USD
	JPY	0.02
	GBP	-0.20
	CHF	-0.25
	EUR	-0.28

FX risk appetite stabilized in the Asian session as G10 pairs consolidated after yesterday's risk sell-off. However, the overarching bearish sentiment continued to emanate from Europe as reports that Spain might have to bailout Bankia, the country's third largest bank by assets (€300bn). The Spanish bank announced that CEO Rodrigo Rato has resigned, with an expected bailout costing approximately...

European Election Results Damage Risk Sentiment

Peter Rosenstreich — Mon, 07 May 2012 08:45:38 GMT

G10 Advancers and Decliners vs USD
	JPY	0.05
	GBP	-0.03
	CHF	-0.55
	EUR	-0.58

FX risk appetite remained weak in the Asian session on the back of European political events over the weekend. In Greece, the two primary parties which supported the bailouts, failed to win a clear majority. The populist shift away from pro-bailout parties indicates that any new government will need to fold to demands for less significant austerity measures and increase the probability of another...

Waiting on the ECB

Peter Rosenstreich — Thu, 03 May 2012 09:47:30 GMT

G10 Advancers and Decliners vs USD
	EUR	-0.05
	CHF	-0.05
	GBP	-0.08
	JPY	-0.15

FX risk appetite stabilized in the Asian session but only after a very hard day for USD bears. Asian regional equities were mixed with the Shanghai composite +0.01%, KOSPI down -0.26% and Hang Seng falling -0.47%. The catalyst for the massive sell off was the significantly worse German and EU PMI manufacturing and unemployment data which was then followed by a disappointing ADP read. Eurozone...

Quiet Asian Session

Peter Rosenstreich — Wed, 02 May 2012 09:13:34 GMT

G10 Advancers and Decliners vs USD
	SEK	0.01
	GBP	-0.10
	CHF	-0.13
	JPY	-0.30

FX risk appetite remained subdued despite China's PMI manufacturing coming in at 53.3 vs. 53.6 exp. Regional equity markets were higher as the Shanghais composite rose +1.58% and KOSPI climbed +0.80. USD was firm still riding the positive effect of a better than expected April ISM manufacturing which came in at 54.8 vs 53.0 exp which was its strongest read in 10 months. New Zealand dairy prices...

S&P Downgrades 16 Spanish Banks

Peter Rosenstreich — Mon, 30 Apr 2012 09:09:16 GMT

G10 Advancers and Decliners vs USD
	GBP	0.18
	JPY	0.18
	CHF	0.01
	EUR	-0.01

USD was on the back footing for most of the Asian sessions as Friday's weaker than expected US Q1 GDP reignited discussions on potential QE3. Market activity was marginal due to the Golden Week holiday in Japan and China. USDJPY sunk to 80.06 which puts the pair at a critical inflection point with the 50% fibo level and daily cloud cover bottom in this region. Despite growth concerns in the US...

BoJ Increase JGB Purchases

Peter Rosenstreich — Fri, 27 Apr 2012 09:31:00 GMT

G10 Advancers and Decliners vs USD
	JPY	0.11
	GBP	-0.08
	CHF	-0.24

As was widely expected, the BOJ unanimously left rates at 0-0.10% while increasing the Asset Purchase Program by Y5 tln. But the big news was the decision to increase JGB purchases in the program by Y10 tln (upper end of expectations) and extend the duration of JGBs in purchases to 3yrs from 2yrs. However, after the initial reaction to sell the JPY, buyers came right back suggesting that the...

RBNZ Holds Rates at 2.50%

Peter Rosenstreich — Thu, 26 Apr 2012 09:34:06 GMT

G10 Advancers and Decliners vs USD
	GBP	0.15
	JPY	0.14
	CHF	0.10
	EUR	0.10

FX trading was subdued in the Asian session, but there were definitely positive tones in risky assets, specifically commodity currencies. Asia’s regional indices were flat with the Nikkei higher by +0.01%, the Hang Sang +0.45%, and the Shanghai composite which rose marginally by +0.07%. USDCAD was able to break through 0.9840 support, while AUDUSD finally pushed through trendline resistance at...

Subdued Trading Ahead of FOMC

Peter Rosenstreich — Wed, 25 Apr 2012 09:06:49 GMT

G10 Advancers and Decliners vs USD
	GBP	-0.04
	EUR	-0.06
	CHF	-0.08
	JPY	-0.11

FX trades were subdued in the Asian session, kept to the sidelines ahead of the FOMC decision. Australian and New Zealand markets were closed for Anzac day. Asia’s regional indices were mixed with the Nikkei higher by +0.86%, the Hang Sang -0.13%, and the Shanghai composite which rose by +0.60%. Yesterday there was a mild rally in risk as Apple posted very strong quarterly results and successful...

OZ Surprisingly Soft CPI

Peter Rosenstreich — Tue, 24 Apr 2012 08:57:16 GMT

G10 Advancers and Decliners vs USD
	JPY	0.34
	EUR	0.12
	CHF	0.12
	GBP	0.04

FX risk appetite was lower especially in AUD and NZD as a softer CPI figure and lower RBA trimming meant CPI increased the likelihood of rate cuts at their May meeting. Asia’s regional indices were mixed with the Nikkei lower by -0.78%, the Hang Sang +0.09%, and the Shanghai composite which fell by -1.12%. Australian headline CPI printed at 0.1% q/q vs 0.6% exp. while the RBA mean CPI rose 2.2%...

IMF Secures $430bn in Funding Pledges

Peter Rosenstreich — Mon, 23 Apr 2012 09:31:55 GMT

G10 Advancers and Decliners vs USD
	JPY	0.35
	GBP	-0.07
	EUR	-0.08
	CHF	-0.39

FX risk appetite was marginally lower in the Asian session, despite reprots the IMF secured $430bn in new funding assurances for "global firewall" and the better than expected China “flash” PMI. Asia’s regional indices were weaker with the Nikkei lower by -0.18%, the Hang Sang +0.70%, and the Shanghai composite which fell by -0.33%. EURUSD bounced between 1.3210 and 1.3180 while USDJPY...

Japan says IMF Lending to Expand

Peter Rosenstreich — Fri, 20 Apr 2012 09:15:58 GMT

G10 Advancers and Decliners vs USD
	CHF	0.12
	EUR	0.07
	GBP	0.05
	JPY	-0.02

FX risk appetite returned slowly in the Asian session as news of the increased IMFs lending capacity helped ease European concerns. Asia’s regional indices were mixed with the Nikkei lower by -0.19%, the Hang Sang +0.02%, and the Shanghai higher by +0.99%. EURUSD traded in a tight range between 1.3129 and 1.3164 while USDJPY was stuck between 81.50 and 81.70. Seiji Maehara the policy chief of the...

Spanish Auction on Deck

Peter Rosenstreich — Thu, 19 Apr 2012 09:04:56 GMT

G10 Advancers and Decliners vs USD
	GBP	0.10
	EUR	-0.01
	CHF	-0.06
	JPY	-0.26

Sentiment surrounding FX was relatively unchanged from yesterday in the Asian session as newsflow dried-up. Asia’s regional indices were mixed with the Nikkei up -0.82%, the Hang Sang +0.42%, and the Shanghai lower by -0.15%. JPY continued to be the major mover this morning, trading to a high of 81.53. On the economic data front, Japan's March trade indicated less negative than expected with a...

Markets Refocus on BoJ Easing

Peter Rosenstreich — Wed, 18 Apr 2012 10:47:07 GMT

G10 Advancers and Decliners vs USD
	GBP	-0.09
	EUR	-0.24
	CHF	-0.27
	JPY	-0.52

FX markets drifted without any specific direction in the Asian session however risk appetite in regional indices came roaring back--although there was no particular macro catalyst for the bullish move. Asia’s regional indices were significantly higher with the Nikkei up +2.14%, the Hang Sang +1.27%, and the Shanghai climbing to +1.80%. USDJPY rallied to 81.43 from 80.90. The big jump in Nikkei...