Friday May 2, 2008 - 10:31:34 GMT
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FX Blog- Market Snapshot Europe Mid-Session 2 May 2008
GVI Market Snapshot- Europe Mid-Session May 2, 2008
- The strong performance the USD on Thursday surprised many traders following the late Wednesday ‚Äúsell the fact‚ÄĚ response to the FOMC decision. Most would have expected a more cautious session. Talk was that a large conversion by the Russian central bank tipped the scale. At the moment, the EUR/USD 1.5500 line is pivotal to the tone of the U.S. currency. It is anybody‚Äôs guess, but some say that it would take a decline in jobs in excess of -100,000 to shake the current positive USD sentiment.
- In addition to the April employment report on Friday (see a jobs loss of 50,000 to 80,000), May factory orders are due.
What Prices are Saying:
Forex and Commodities:
- The USD is trading lower vs. the EUR and is down sharply vs. GBP from late Thursday. The EUR/GBP cross has weakened.
- The carry trade funding currencies, JPY and CHF, are mixed vs. the USD. EUR/JPY has gained. EUR/CHF is steady. The CHF is higher vs. the JPY
- The carry-trade driven currencies (AUD, CAD and NZD) are broadly mixed vs. the USD. Also Gold and oil are higher.
Equities and Bonds:
- The Shanghai Composite was closed. The Hang Seng index advanced. The Japanese Nikkei closed up strongly after the weak JPY. Japan is into the Golden Week holiday period. 10-yr JGBs closed weaker.
- Many Key European bourses are up strongly. Eurozone benchmark bonds are mixed to lower.
- U.S. equities are currently seen opening mixed to lower later. U.S. bond prices are mixed.
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