Thursday May 29, 2008 - 09:46:50 GMT
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FX Blog- Market Snapshot Europe Mid-Session 29 May 2008
GVI Market Snapshot- Europe Mid-Session for May 29, 2008
Profile of Key Markets:
- Daily change in U.S. vs. investment currencies:
EUR/USD- weaker; GBP/USD- weaker.
USD vs. carry trade financing currencies:
USD/JPY- higher; USD/CHF- higher; CHF/JPY- softer Carry-trades:
USD/CAD- lower; AUD/USD- weaker; NZD/USD- weaker
Crude Oil (WTI)- steady; Gold- steady.
- EUR crosses:
EUR/JPY- steady; EUR/CHF- better; EUR/GBP- lower
- Equities and Bonds:
Nikkei- ends up sharply; Shanghai Composite- closed lower; Hang Seng- closed lower:
DAX- higher; FTSE- higher; SMI- higher
U.S. equities are seen opening steady to higher later.
- 2-yr Bond Highlights:
E-Z 4.28%. +5bp; U.S. 2.33% +9bp. JGB 0.95%, +8
- The tone of the USD is better at this hour. Weaker than expected German employment data have been a weight on the EUR/.USD. Note recently that the bias of much of the German and E-Z data has been to the soft side of expectations. Comments by Dallas Fed President and hawk Fisher have given the USD a lift as he indicated that recent U.S. inflation data could force a Fed rate hike.
- Net movements in the critical 2-yr bond yields suggest support for the USD. The Fisher comments have been a weight on bond prices.
- Dealers will be watching to see how the crude to EUR/USD correlation works today as well as the JPY to equity relationship. Both correlation weakened mid-session Wednesday in the U.S.
- Sovereign players could always reappear at any time looking to buy EUR/USD on weakness.
- Key releases today include: U.S. GDP revisions, weekly jobless and energy inventories. Also Canadian Current Account, GDP and PPI data (see GVI Calendar for details).
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