Monday May 19, 2008 - 09:48:21 GMT
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FX Blog- Market Snapshot Europe Mid-Session 19 May 2008Global-View.com Market Sentiment reports are prepared periodically during trading sessions by the trading professionals at GVI Gold. For more information on the GVI Gold Service Click Here.
GVI Market Snapshot- Europe Mid-Session for May 19, 2008
- Short-term market sentiment for the USD suddenly turned negative Friday in the U.S. There were a couple of unlikely catalysts for the shift in sentiment, but most likely, market positions (USD longs) simply got too far ahead of fundamental improvements in the underpinnings of the U.S. currency. The pivotal price for the EUR/USD remains the 1.55 line. The ECB does not feel it has room to ease monetary policy as fast as been hoped for by many.
- As the EUR/USD to pivots 1.55 line. Its position relative to that level has been setting the tone of the market.
- Today the U.S. will release April Leading Economic indicators. This is a second-tier statistic.
What the Market Prices are Indicating:
Forex and Commodities:
- The USD is lower vs. the EUR. The GBP is up from late Friday. The EUR/GBP cross is steady.
- The carry-trade driven currencies (AUD, CAD and NZD) are trading higher vs. the USD. Gold and oil are mixed.
- The carry trade financing currencies, JPY and CHF, are firmer vs. the USD. EUR/JPY is lower. The EUR/CHF is softer. The CHF is a bit higher vs. the JPY
Equities and Bonds:
- The Shanghai Composite closed lower, while the Hang Seng gained. The Japanese Nikkei closed higher. 10-yr JGBs closed at 1.67%, -1bps.
- Key European bourses are trading higher. Eurozone benchmark bond prices are better.
- U.S. equities are seen opening mixed later. U.S. bond prices are higher.
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