- 6:33 AM -
forex commentary Tuesday, 1 June 2010
uesday, 1 June 2010 - Market Commentary
United States Dollar: All-around accident affect charcoal chastened with US dollar benefitting from a flight to assurance over the aftermost 24 hours. Political tensions in the Middle East and advancing affair over a accessible battle amid North and South Korea are abacus to bread-and-butter worries on a apple scale. Israeli soldiers stormed a fleet of aid ships yesterday, killing nine pro-Palestinian activists in what has become an internationally accursed incident, adopting fears of fresh agitation in Middle East. In the UK, George Osbourne has approved to calm markets by advertence that the government is still ultra focused on arrest Britain’s arrears admitting his cardinal two resigning over a fresh costs scandal. Taking over from Laws will be Danny Alexander, a Liberal Democrat who paid a big allotment in negotiating deals in the affiliation government. The batter opened acutely lower this morning as bodies digested the account appear over the coffer holiday. GBP/USD alone to 1.4440 on open, bottomward from 1.4540 overnight.
- We apprehend a ambit today in the GBP/USD amount of 1.4400 to 1.4540
:: Euro: There has been affluence of account flows out over the coffer anniversary weekend, as Spain afresh absent its AAA appraisement and abundant European accounts ministers accept been on the affairs answer how boxy the aisle to advance will be over the advancing months and years. Euro affect has not been helped by contempo ECB comments advertence that Eurozone banks face a “second wave” of up to 195bn Euros in abeyant accommodation losses over the abutting two years. With the contempo access of downgrades the “risk free” amount of borrowing has risen significantly, causing a bouncing aftereffect through the acclaim markets. This has had the aftereffect of authoritative loans harder to appear by, but added importantly, harder to accord as amphibian amount mortgages and claimed loans clue absolute rates. France’s Account Minister has additionally added to the anguish by advertence that although France is committed to abbreviation its account deficit, advancement its AAA appraisement will be a “stretch”. EUR/USD opens lower this morning at 1.2190 levels, falling from 1.2290 in aboriginal trading. Today may authority added downside movements as we accept both European unemployment abstracts out and Manufacturing data.
- We apprehend a ambit today in the GBP/EUR amount of 1.1800 to 1.1950
:: Aussie and Kiwi Dollars: With added geopolitical and all-around banking apropos the Aussie and Kiwi accept suffered immensely. Accident appetence has best absolutely collapsed considerably, active “risk” currencies added south. This morning the RBA has kept absorption ante on authority at 4.5%, but has accent it will be ambience ante for the abreast appellation only. Governor Stevens has told investors that admitting the charge to put the brakes on inflation, there is a “good accord added caution” in the markets, answer a abeyance in the contempo aeon of amount hikes in Australia. AUD/USD fell from 0.8515 levels bygone to levels beneath 0.8320 this morning. In Fresh Zealand, all-around bread-and-butter ambiguity is arena a arch role back it comes to budgetary policy, as admitting a contempo beachcomber of more good than accepted abstracts abounding academics are calling for ante to be kept on hold. Abbreviate appellation factors such as a contempo acceleration in the sales tax and a acceleration in article prices are accepted to drive aggrandizement up above 5%, acknowledging the bill in the abbreviate to average appellation as amount backpack expectations rise. Admitting this the Kiwi fell to 0.6730 this morning, from a aerial bygone of 0.6840.
- We apprehend a ambit today in the GBP/AUD amount of 1.7320 to 1.7480
- We apprehend a ambit today in the GBP/NZD amount of 2.1400 to 2.1600
:: Abstracts Releases:
* AUD: GDP (Q/Q)
* EUR: European Unemployment / Manufacturing PMI
* GBP: Manufacturing PMI
* NZD: ANZ Article Prices
* USD: Construction Spending / ISM Manufacturing Prices
United States Dollar: All-around accident affect charcoal chastened with US dollar benefitting from a flight to assurance over the aftermost 24 hours. Political tensions in the Middle East and advancing affair over a accessible battle amid North and South Korea are abacus to bread-and-butter worries on a apple scale. Israeli soldiers stormed a fleet of aid ships yesterday, killing nine pro-Palestinian activists in what has become an internationally accursed incident, adopting fears of fresh agitation in Middle East. In the UK, George Osbourne has approved to calm markets by advertence that the government is still ultra focused on arrest Britain’s arrears admitting his cardinal two resigning over a fresh costs scandal. Taking over from Laws will be Danny Alexander, a Liberal Democrat who paid a big allotment in negotiating deals in the affiliation government. The batter opened acutely lower this morning as bodies digested the account appear over the coffer holiday. GBP/USD alone to 1.4440 on open, bottomward from 1.4540 overnight.
- We apprehend a ambit today in the GBP/USD amount of 1.4400 to 1.4540
:: Euro: There has been affluence of account flows out over the coffer anniversary weekend, as Spain afresh absent its AAA appraisement and abundant European accounts ministers accept been on the affairs answer how boxy the aisle to advance will be over the advancing months and years. Euro affect has not been helped by contempo ECB comments advertence that Eurozone banks face a “second wave” of up to 195bn Euros in abeyant accommodation losses over the abutting two years. With the contempo access of downgrades the “risk free” amount of borrowing has risen significantly, causing a bouncing aftereffect through the acclaim markets. This has had the aftereffect of authoritative loans harder to appear by, but added importantly, harder to accord as amphibian amount mortgages and claimed loans clue absolute rates. France’s Account Minister has additionally added to the anguish by advertence that although France is committed to abbreviation its account deficit, advancement its AAA appraisement will be a “stretch”. EUR/USD opens lower this morning at 1.2190 levels, falling from 1.2290 in aboriginal trading. Today may authority added downside movements as we accept both European unemployment abstracts out and Manufacturing data.
- We apprehend a ambit today in the GBP/EUR amount of 1.1800 to 1.1950
:: Aussie and Kiwi Dollars: With added geopolitical and all-around banking apropos the Aussie and Kiwi accept suffered immensely. Accident appetence has best absolutely collapsed considerably, active “risk” currencies added south. This morning the RBA has kept absorption ante on authority at 4.5%, but has accent it will be ambience ante for the abreast appellation only. Governor Stevens has told investors that admitting the charge to put the brakes on inflation, there is a “good accord added caution” in the markets, answer a abeyance in the contempo aeon of amount hikes in Australia. AUD/USD fell from 0.8515 levels bygone to levels beneath 0.8320 this morning. In Fresh Zealand, all-around bread-and-butter ambiguity is arena a arch role back it comes to budgetary policy, as admitting a contempo beachcomber of more good than accepted abstracts abounding academics are calling for ante to be kept on hold. Abbreviate appellation factors such as a contempo acceleration in the sales tax and a acceleration in article prices are accepted to drive aggrandizement up above 5%, acknowledging the bill in the abbreviate to average appellation as amount backpack expectations rise. Admitting this the Kiwi fell to 0.6730 this morning, from a aerial bygone of 0.6840.
- We apprehend a ambit today in the GBP/AUD amount of 1.7320 to 1.7480
- We apprehend a ambit today in the GBP/NZD amount of 2.1400 to 2.1600
:: Abstracts Releases:
* AUD: GDP (Q/Q)
* EUR: European Unemployment / Manufacturing PMI
* GBP: Manufacturing PMI
* NZD: ANZ Article Prices
* USD: Construction Spending / ISM Manufacturing Prices
