Posts Tagged ‘ rate ’

Cable Hits 5 Month High as Risk Rally Rolls On

Risk trade continued to be supported in Asian and early European trade today with both euro and pound making fresh highs, but Aussie was felled by softer inflation data and tumbled below .9000 as expectations of additional RBA rate hikes during the summer evaporated. The euro rose to a high of 1.3043, boosted by better [ READ MORE ]

Soft Inflation Data Sends Aussie Below .9000

Australian CPI printed at 0.6% versus 1.0% eyed, disappointing investors and sending Aussie below the .9000 level in Asian session trade. On a yearly basis, prices rose at 3.1% pace versus forecasts of 3.4%. The key trimmed inflation measure was even more subdued printing at 2.7% – coming in handily below the RBA 3% target [ READ MORE ]

Forex Volatility to Remain High

With the onset of the Eurozone sovereign debt crisis this year, volatility levels in forex (as well as in other financial markets), surged to levels not seen since the height of the credit crisis. While volatility has subsided slightly over the last few months, it still remains above its average for the year, and significantly [ READ MORE ]

Emerging Markets Continue to Shine

After a slight respite following the culmination of the Eurozone debt crisis, emerging markets financial markets are back to the their former selves, with stocks, bonds, and currencies all performing well. The rally is being driven by two principal factors. First, investors came to the gradual realization that the trend towards [ READ MORE ]

Aussie PPI Depresses Expectations of RBA Rate Hike

Australian Producer prices for Q2 of 2010 printed much lower than expected coming in at 0.3% versus forecasts of 0.8% tempering speculation that the RBA will raise rates at its next meeting in August. Producer prices rose at annual rate of 1.0% versus 1.5% projected with gains lead by higher construction and dairy costs, but [ READ MORE ]

Better Labor Data Propels Cable to 2 Month Highs

UK Claimant count printed better than forecast helping to fuel a rally in cable that pushed the unit to a fresh 2 month high above 1.5250. UK jobless rolls declined by another -20.8K versus -20.1K eyed while the unemployment rate dipped to 7.8% from 7.9% forecast. The UK ILO employment figures for the three [ READ MORE ]

Japanese Yen and the Irony of Debt

Since my last update in June, the Japanese Yen has continued to creep up. It has risen a solid 5% in the year-to-date against the Dollar, 12% against the Pound, and an earth-shattering 20% against the Euro. It is closing in on a 15-year high of 85 Yen/Dollar, and beyond that, the all-time high of [ READ MORE ]

New Zealand Dollar Thriving in Obscurity

It’s understandable that forex investors basically ignore New Zealand. Its economy is around 10% the size of its neighbor Australia, its currency is less liquid, and spreads are higher. Given that its performance closely tracks the Australian Dollar, meanwhile, why pay it any attention? To be sure, the new currencies from Down Under trade in virtual [ READ MORE ]

US Dollar Paradigm Shift

Since the inception of the financial crisis, the Dollar has been treated as a safe haven currency. Simply, when there was a surge in the level of risk-aversion, the Dollar rose proportionally. When risk aversion gave way to risk appetite, the Dollar fell. It was as simple as that. Lately, this notion has manifested itself in [ READ MORE ]

Trichet’s Swagger Supports the Euro

As expected the ECB kept its benchmark rate at 1% and reiterated its long held stance that it sees risks broadly balanced between inflation and growth. However, at the monthly post announcement press conference ECB President Jean Claude Trichet assumed a decidedly hawkish posture refusing to concede the point that the central bank will become [ READ MORE ]

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