Wednesday May 14, 2008 - 20:13:35 GMT
Share This Story
Global-View - www.global-view.com
FX Blog- Market Snapshot Far East Open for 15 May 2008
GVI Market Snapshot- Far East Open for May 15, 2008
- Market sentiment for the USD continues to improve following comments by French Finance Minister Lagarde late Tuesday that at 1.5500 the EUR/USD was overvalued by 20%. This implies a French target on EUR/USD of about 1.2900. Few dealers feel that her perspective is necessarily that of the ECB.
- The USD proved unable to hold onto its early gains again over the day following tame April CPI figures.
- High U.K. average earnings data today were another nail in the coffin for hopes of a June rate cut by the Bank of England.
- The EUR/USD continues to pivot the EUR/USD 1.55 line. Decisively below 1.55 suggests a 1.50-1.55 broad trading range..
- Key data Thursday include Japanese machinery orders, E-Z flash GDP and HICP. The U.S. will see a number of key releases including: the Empire PMI, weekly jobless claims, Industrial Production, the Philly Fed Survey and NAHB index.
What the Market Prices are Indicating:
Forex and Commodities:
- The USD is still higher vs. the EUR. The GBP is now steady from late Tuesday. The EUR/GBP cross is about steady.
- The carry-trade driven currencies (AUD, CAD and NZD) are trading mostly weaker vs. the USD, except the CAD, which has gained. Gold and oil are mixed.
- The carry trade financing currencies, JPY and CHF, are weaker vs. the USD. EUR/JPY is up strongly. The EUR/CHF is firmer. The CHF is steady vs. the JPY
Equities and Bonds:
- The Shanghai Composite closed higher, while the Hang Seng fell. The Japanese Nikkei closed better. !0-yr JGBs closed at 1.71%, +13bps.
- Key European bourses closed higher. Eurozone benchmark bond prices were weaker.
- U.S. equities are ending substantially higher. U.S. bond prices are lower.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."