FXstreet.com: Fundamental: Fundamental Market View

Correctional movements after a strong strengthening of the dollar…

support@ecpulse.com (ecPulse.com) — Fri, 20 Nov 2009 19:27:21 GMT

So far, correctional movements are clearly witnessed throughout the currencies market after a strong strengthening of the green Benjamin along with the yen as their appeal was strongly boosted as a refuge as a result of fears, knowing that the U.S stocks plummeted within the midday session and the EU stocks closed in red. Moreover the green Federal currency gained momentum in the prior EU session as pessimism has been spread after that ECB Chairman; Trichet signaled that the ECB will start to

Today's Live Show: Big Trading Week Ahead for the USD, EUR and GBP

trader@allthingsforex.com (AllThingsForex) — Fri, 20 Nov 2009 18:28:33 GMT

Forex traders, join the daily All Things Forex broadcast- a live one hour program covering Forex and major economic events, trend developments, research, analysis, ideas, education, live traders forum, interviews with some of the most respected names in the trading world, and much more.. In the broadcast today: Big Trading Week Ahead for the USD, EUR and GBP. We list the Top 10 economic events that will be crucial for the future fate of the USD, the EUR and the GBP in the

The trend to lower interest rates continues

Nicole.Elliot@mhcb.co.uk (Mizuho Corporate Bank) — Fri, 20 Nov 2009 15:53:40 GMT

Overview A week with many subtle changes in a series of different markets and instruments. Most notable was the continuing trend to lower interest rates, new record low yields set on benchmark 2-year Swedish Treasuries (0.555%), US 2-year interest rate swaps (just under 1.00%), and Brazil’s USD 2014 bond (3.595%). Many money market futures contracts rallied yet again to new record highs and the effect rippled out through to longer dated paper, Swiss 10-year Conf testing the psychological 2.00%

There are indications that the market is reducing its exposure to risk

sam.bullard@wachovia.com (Wells Fargo Investments, LLC) — Fri, 20 Nov 2009 15:23:43 GMT

Market Summary The US dollar is firmer today and on the balance of the week against other major currencies. The one exception is the Japanese yen, pointing to weaker equity markets as the main FX driver. Strong demand for short-term US Treasuries, with the two-year Treasury yield hitting its 2009 low yesterday, is also an indication that the market is reducing its exposure to risk. This may be a reflection of financial markets starting to incorporate a more realistic view of the global

Dollar climbs vs. majors

support@ecpulse.com (ecPulse.com) — Fri, 20 Nov 2009 15:18:13 GMT

The dollar is seen vigorous against versus major currencies, as investors are currently seeking lower yielding assets versus higher yielding assets, and this meant that stock markets shed points. The Dollar Index, which usually gauges strength of the dollar versus six major currencies, is currently traded at 75.70 while recording a high of 75.87 and a low of 75.19. The euro lost massive ground in the markets after President of the European Central Bank Jean-Claude Trichet said that he is

Trichet tempers European rate rally

info@interactivebrokers.com (Interactive Brokers LLC) — Fri, 20 Nov 2009 15:13:40 GMT

Apart from giving the euro a slap in the face Jean Claude Trichet’s remarks about wrapping up the cheap loans awarded to the European banking system a year ago tempered the recent rally in European interest rate futures this morning. One has to be careful where to go with the hawkish comments, which we acknowledge are not new and simply underscore what we already knew about what the ECB would do when loans are coming due in December. Previously the ECB has pulled a line from the Loony

TraderPlanet Daily Currency Analysis

info@traderplanet.com (TraderPlanet.com, LLC) — Fri, 20 Nov 2009 14:17:14 GMT

EUR/USD The Euro weakened to lows around 1.4840 against the dollar on Thursday as technical considerations tended to dominate within narrow ranges. The Euro was also unsettled to some extent by a general increase in risk aversion. The dollar was unable to make a serious attempt on breaking Euro support in the 1.4820 region as markets lacked momentum. The Philadelphia Fed index was stronger than expected with a further increase in the headline index to 16.7 from 11.5 the previous month. The

Currency Currents

jcrooks@blackswantrading.com (Black Swan Capital) — Fri, 20 Nov 2009 13:26:09 GMT

Key News The Bank of Japan kept interest rates near zero. (Bloomberg) Asian policy makers are studying capital controls to limit “hot money” inflows that may stoke asset bubbles and force their currencies to appreciate. (Bloomberg) Pacific Investment Management Co., manager of the world’s biggest bond fund, said China’s yuan, South Korea’s won and the Singapore dollar offer “attractive value” because central banks need to counter inflation. (Bloomberg) Poland will be the only European Union

US Morning Briefing

info@ransquawk.com (RANsquawk) — Fri, 20 Nov 2009 12:49:39 GMT

Overnight News Asia: Nikkei fell 0.5% and logged its first four-week losing streak in over a year, with Sony sliding after its new growth strategy failed to reassure investors. Helping to temper the Nikkei’s decline were gains in banking stocks, battered recently by concerns about fundraising after top lender Mitsubishi UFJ Financial Group announced a massive share sale this week. (RTRS) At 0630 GMT JGB's were trading unchanged at 139.25 in a mixed session. Japan’s government said for the

Daily Forex Overview

info@dukascopy.com (Dukascopy Swiss FX Group) — Fri, 20 Nov 2009 11:10:36 GMT

Previous session overview The euro fell against the yen and the dollar in Asia on Friday, as sluggish Asian shares reduced risk appetite and boosted demand for the safe-haven U.S. and Japanese currencies, while Japanese exporters sold the European unit to settle accounts. If global share prices continue to languish next week, the euro could head lower toward JPY130.00 and USD1.4600, some traders said. The European currency was trading at JPY132.61 and USD1.4919 at 0450 GMT, lower than its late

European Session: BoJ Holds Rates Steady

support@ac-markets.com (ACM - Advanced Currency Markets) — Fri, 20 Nov 2009 11:20:56 GMT

Market Brief Risk appetite stayed weak in the Asian session, after Wall Street closed lower but, overall, most of the trading in currencies and commodities was well in their ranges. The EURUSD traded between 1.4880 and 1.4940, while spot Gold traded between $1140 and $1147. With no first tier economic releases scheduled today, we don't expect any one way trade of break out of the monthly ranges. But ranges can also be very profitable, especially the EURCHF. The USDJPY remains heavy below 90.61

Pound Idles Lower

enquiries@worldfirst.com (World First UK Ltd) — Fri, 20 Nov 2009 11:04:15 GMT

All this and more is available on our video blog The pound continued to dribble lower yesterday as the market continued to digest the Bank of England’s November Minutes. The news that the BOE is continuing to place weight behind a plan to cut the interest rate that commercial banks receive on deposits was the major unexpected sentence in the minutes and has hurt sterling accordingly. The pound was buoyed however by retail sales for October that rose at the fastest rate since the beginning of

Japan's government officially declared that their economy has fallen into deflation

info@odlsecurities.com (ODL Securities) — Fri, 20 Nov 2009 10:53:47 GMT

The dollar finally bucked the recent trend by gaining against the Euro and other major currencies. The dollar index rise to 75.45, up by 0.08 points. Some analysts pointed to some buying of US treasuries as a driver for the rally, with investors seeing them as a safe haven versus the higher yielding, and thus riskier, assets. Market News China is “passive” on the value of the US Dollar according to Bank Governor Zhou Xiaochuan Timothy Geithner said at a Washington hearing that he is “quite

Gold holding near high, keeps eye on dollar

info@thebulliondesk.com (The Bullion Desk) — Fri, 20 Nov 2009 10:47:57 GMT

London, 19 November 2009 - Gold and the rest of the precious complex came under pressure across the early parts of Thursday’s trading day as the dollar rallied on concerns the current risk rally was overdone, however the metals recovered lost ground later in the day as the greenback reversed its gains with the EUR/USD cross holding the recent 1.48-50 range. As a whole though investors appeared more cautious with the CRB Index ending the day down 0.7% and the Dow off around 0.9%w while treasury

Polish labour market data in focus

piet.lammens@kbc.be (KBC Bank) — Fri, 20 Nov 2009 10:20:03 GMT

Headlines Currencies: Emerging markets nervous on capital controls, weak equities Fixed Income: Polish industry confirms ongoing recovery Czech Republic The Czech koruna got under pressure as global investors became more risk averse on Thursday. That happened despite solid US figures including further improvement in the important Philly Fed index. Some nervousness could have come from the announcement of capital controls on some emerging markets. Brazil unveiled a new tax on Wednesday to curb

FX: EUR/USD resists stock market correction rather well

piet.lammens@kbc.be (KBC Bank) — Fri, 20 Nov 2009 09:14:44 GMT

On Thursday, there were corrections in several asset markets. To some extent, this broader move also hit EUR/USD trading. The pair was sold in quite an aggressive way at the start of trading in Europe. At that time, the decline was a bit out of range with the price action in other markets (especially in the stock market). So, it looked is if EUR/USD was in for more pronounced technical correction. However, the pair found soon a bottom in the 1.4850 area. Additional stock market losses later in

Between a liquidity flood and unattractive valuations

danskeresearch@danskebank.com (Danske Bank A/S) — Fri, 20 Nov 2009 07:55:22 GMT

Hungarian and Polish rate decisions take centre stage The Polish rate decision could be somewhat of a non-event as the Polish central bank (NBP) is likely to keep its key policy rate unchanged at 3.50%. There will be more uncertainty about the Hungarian rate decision. Even though it seems to be a done deal that there will be yet another rate cut next week, there is some uncertainty about the size of it. Until recently we had expected that the MNB would finish its easing cycle on Monday with a

US Philadelphia Fed index rises from 12 to 17 in Nov

natalie_denne@westpac.co.nz (Westpac Institutional Bank) — Fri, 20 Nov 2009 06:00:50 GMT

News and views Equity investors made for the exit door at the NY open, selling industries across the board, although chip makers Intel and Texas Instruments suffered larger falls on analyst downgrades. The S&P500 is currently down 1.6%, with similar losses recorded in Tokyo and Europe. US data, particularly the Philly Fed factory survey, was actually supportive, so the sell-off suggests fragile investor sentiment. Apart from oil (-2.4%), commodities are only slightly lower, and still near

Commodities Declined As Risk Appetite Reduced

contact@oilngold.com (Oil N' Gold) — Fri, 20 Nov 2009 03:54:44 GMT

Despite encouraging macroeconomic data, broad-based declines were seen in high-yield assets including commodities and equities. Investors worried that recent rallies have been overextended and have outpaced improvement in global economies. WTI crude oil plunged to -2.7% to settle at 77.46 after failing to test 80 while Comex gold slid to as low as 1130 before recovery. The benchmark contract ended the day at 1141.9, almost flat from the previous day. Released yesterday, the Philly Fed index

Greenback and Yen Rally on Risk Aversion, Falling Stocks

trading@cmsfx.com (CMS Forex) — Fri, 20 Nov 2009 02:25:49 GMT

U.S. Forex Market Commentary

info@gcitrading.com (GCI) — Thu, 19 Nov 2009 23:50:15 GMT

EURO The euro moved lower vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4840 level and was capped around the $1.4965 level. Weakness in global equity markets, particularly in U.S. shares, resulted in less demand for higher-yielding assets denominated in euro and other currencies. Traders reduced their long exposure to risk today and many dealers believe this is a trade that could continue through the end of the year as positions are

Correctional movements…

support@ecpulse.com (ecPulse.com) — Thu, 19 Nov 2009 19:20:40 GMT

So far strong correctional movements are taking place throughout the currencies market after that the low-yielding assets appeal; the dollar and the yen, was boosted as a refuge since fears were spread after that the EU stocks plunged within their midday and closing session along with a plummeting of the US stocks in their midday session. In fact, the dollar index, which tracks the strength of the green Benjamin in front of basket of currencies, is inclining within the daily chart but dropped

Today's Live Show: EUR vs. USD: Impending Bullish Breakout or Larger Correction?

trader@allthingsforex.com (AllThingsForex) — Thu, 19 Nov 2009 18:18:31 GMT

Forex traders, join the daily All Things Forex broadcast- a live one hour program covering Forex and major economic events, trend developments, research, analysis, ideas, education, live traders forum, interviews with some of the most respected names in the trading world, and much more.. In the broadcast today: EUR vs. USD: Impending Bullish Breakout or Larger Correction? We analyze this week's rangebound EUR/USD pair and explore some early warning signs that could signal

Yields grind lower as stock markets weaken

info@interactivebrokers.com (Interactive Brokers LLC) — Thu, 19 Nov 2009 15:47:33 GMT

Interest rate futures are higher across the globe as investors continue to tread further and further down the seemingly endless red carpet rolled out by global central banks. Recent accentuation by various political and monetary chiefs confirming the period of low rates is practically a permanent fixture in the global house of cards is again a key factor today. With jobless claims in the U.S. coming in at an in-line 505,000 reading bond and short term yields continue to heed the words of

Majors clear way for dollar to rise

support@ecpulse.com (ecPulse.com) — Thu, 19 Nov 2009 15:40:12 GMT

The dollar is gaining momentum versus major currencies as a result of declining stock markets which meant that investors are avoiding higher yielding assets and turning to lower yielding assets. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 75.46 while recording a high of 75.54 and a low of 75.04. The euro versus dollar pair is trading between the support of 1.4830 and the resistance of 1.4888 at 1.4877. The pair

Currency Currents

jcrooks@blackswantrading.com (Black Swan Capital) — Thu, 19 Nov 2009 14:59:08 GMT

Key News BRUSSELS, Nov 19 (Reuters) - Top euro zone officials will urge China this month to move towards a more flexible exchange rate policy but it will not be easy to introduce change soon, EU Monetary Affairs Commissioner Joaquin Almunia said on Thursday. European Central Bank President Jean-Claude Trichet, the chairman of euro zone finance ministers, Jean-Claude Juncker, and Almunia will travel to China at the end of November for talks on exchange rates. "We

US rates "low for long"

info@econometer.org (Econometer.org) — Thu, 19 Nov 2009 14:50:20 GMT

Risk appetite is failing to show much improvement this week and sharply weaker than forecast US housing data dampened sentiment further following other soft data over recent days including the Empire manufacturing survey, industrial production and retail sales less autos. The data will add to concerns about the pace and magnitude of growth in the months ahead. A sub-par recovery and benign inflation outlook are the two main reasons why the Fed will not hike rates for a long while yet. This was

Major markets to continue range trading in the coming days

sam.bullard@wachovia.com (Wells Fargo Investments, LLC) — Thu, 19 Nov 2009 14:50:22 GMT

Market Summary The Japanese yen is gaining across the board today, followed by the U.S. dollar. Meanwhile, the New Zealand dollar is the weakest major currency this morning, unsettled by political developments. Overall, currency markets appear firmly in “risk off” mode, implying weaker global equities and a more subdued mood in commodity markets. The rally in U.S. Treasuries completes the picture with the 10-year yield down 3.33% from 3.44% one week ago. It is hard to find a specific trigger

US Morning Briefing

info@ransquawk.com (RANsquawk) — Thu, 19 Nov 2009 13:38:57 GMT

Overnight News Asia: Japan’s 10-year bond yields were near the lowest level in a month after a sale of 20-year securities drew the highest demand since August. JGBs were trading at 139.25 (-0.05) at 0610 GMT. Nikkei fell 1.3% to a four-month closing low, with the nation’s biggest bank Mitsubishi UFJ Financial Group sliding after announcing a massive fundraising. MUFG fell 3.7% after saying it would raise USD 11bln to meet stricter capital rules. (RTRS) Japan finance minister Fujii said that

The yen and dollar rebound

support@ecpulse.com (ecPulse.com) — Thu, 19 Nov 2009 12:02:53 GMT

The Japanese yen and the greenback rebounded versus majors on Thursday after the fall in stocks which spurred demand on safety assets. The dollar index, a measure of the dollar movement's vis-à-vis six major currencies, climbed to 75.40 relative to Wednesday's closing at 75.04. The euro-dollar pair showed a sharp decline on the daily charts and 4-hour charts also, retracing all yesterday's gains. The pair fell after breaching the support level at 1.4900 in a tranquil day, where there is no

US initial jobless claims are scheduled to be released at 1330, followed by the Philadelphia Fed at 1500

info@odlsecurities.com (ODL Securities) — Thu, 19 Nov 2009 10:13:27 GMT

The chart below shows the US Dollar Index, which measures the Dollar versus a basket of six other currencies. The decline has been spectacular, 7% this year, and has been cited as being a major driver behind the oil and gold rallies of late. We haven’t been at these levels since September 2008, such has been the fall in dollar confidence. Market News The chart below shows the US Dollar Index, which measures the Dollar versus a basket of six other currencies. The decline has been spectacular,

European Session: Fed Rhetoric Continues To Stir Up Markets

support@ac-markets.com (ACM - Advanced Currency Markets) — Thu, 19 Nov 2009 13:50:02 GMT

Market Brief Gold has once again outshone other assets classes by powering to new highs above $1153, bringing the gains month-to-date to an astounding +10.2%. The move has been paralleled by rallies in most major and EM currencies against the USD (albeit to a less impressive extent), however underlining the disintegration of recent correlations, equity markets put in a rather mediocre performance on the whole. Yesterday’s major news event was the publication of the Bank of England Minutes;

BOE Minutes see the pound weaken

enquiries@worldfirst.com (World First UK Ltd) — Thu, 19 Nov 2009 09:30:10 GMT

All this and more is available on our video blog Minutes from the last Bank of England rate decision sparked a decline for the pound on Tuesday. A split decision by the Monetary Policy Committee (MPC) to increase the asset purchase program, and dovish accompanying comments saw investors sell back sterling from its recent highs against the dollar and euro Seven of the nine strong committee, including Governor King, voted for the increase of £25bn to the asset purchase plan, while David Miles

Gold runs into profit taking after peaking above $1150/oz

info@thebulliondesk.com (The Bullion Desk) — Thu, 19 Nov 2009 09:21:33 GMT

London, 19 November 2009 - Gold pushed to yet another all-time record yesterday, scaling the $1150 level as the market continued to be buoyed by strong speculative and option related buying as well as investment demand as holdings in the SPDR ETF increasing 3.6-tonnes to 1,117.49-tonnes. The CRB Index gained marginally, closing up 0.3% while NYMEX crude oil tested above $80/barrel following a drop in US oil inventories. Meanwhile disappointing housing data kept US equities under pressure for

Daily Forex Overview

info@dukascopy.com (Dukascopy Swiss FX Group) — Thu, 19 Nov 2009 09:08:39 GMT

Previous session overview The euro fell against the yen and dollar in Asia Thursday as weak stocks caused investors to shun the risk-sensitive unit, but dealers said it may soon rebound on a lack of supporting factors for the yen and dollar. The euro fell to USD1.4912 from USD1.4946 overnight in New York, and to JPY132.90 against the yen from JPY133.77. The number of euro-selling investors was small, but the impact of their selling was magnified as flows in Asia were thin, dealers noted. The

BoE reconsidering the possiblity of a deposit rate cut hammers sterling

piet.lammens@kbc.be (KBC Bank) — Thu, 19 Nov 2009 11:45:08 GMT

After two days of a slightly disappointing price action (especially compared to the global stock market performance), EUR/USD found again its composure on Wednesday. At first there was not really a big story behind the euro rebound. A positive start on the European equity markets might have been a good reason, although the link was not as tight as on Monday and Tuesday. The move even accelerated after the publication of the BoE minutes (cross currency impact from EUR/GBP?). Weaker than

NZD also formed a parabola between 0.7440 to 0.7500

natalie_denne@westpac.co.nz (Westpac Institutional Bank) — Thu, 19 Nov 2009 06:03:00 GMT

News and views Risk appetite weakened slightly, with a nod to US house building data which was weaker than expected. The S&P500 fell soon after the open and is currently down 0.5%, although it does remain around the cycle highs, so that the setback of the past two days could best be described as a consolidation in an uptrend. Most commodities gained in London but reversed in NY for little net change, the precious metals, gold, silver and platinum all making new 2009 highs in the interim.

The Japanese yen tested a key psychological level today holding just above 89.00

info@uboc.com (Union Bank of California) — Thu, 19 Nov 2009 06:09:30 GMT

The US dollar strengthened initially overnight and then gave back some of its gains after the release of U.S. CPI data and lower than expected housing starts. CPI came in -0.2 percent and U.S. housing starts declined 10.6 percent in October, to an annual rate of 529,000 units. The lackluster figures suggest a U.S. recovery will be slow and will continue to drag on the overall global recovery. The market will look towards tomorrow’s releases of Initial jobless claims and the Philadelphia Fed.

Slump in USD Lifted Gold Above 1150

contact@oilngold.com (Oil N' Gold) — Thu, 19 Nov 2009 04:35:43 GMT

USD tumbled against the euro (-0.5%) as weak housing starts and building permits triggered worries that the Fed will maintain its expansionary monetary policy for a long time. Weakness in USD boosted precious metals and COMEX gold made a new record again by soaring to as high as 1153.4. The benchmark contract finished the day at 1141.2, up +0.2%. US housing starts plunged -10.3% mom to 529K in October. The reading did not only miss market expectation of a modest increase to 598K but also

Euro Higher vs Dollar, Yen; Pound Slides Following BOE Minutes

trading@cmsfx.com (CMS Forex) — Thu, 19 Nov 2009 01:46:18 GMT