Monday June 9, 2008 - 20:34:04 GMT
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FX Blog- Market Snapshot Far Eat Open for 9 June 2008
GVI Market Snapshot- Far East Open for June 10, 2008
Profile of Key Markets:
- The USD is now trading sharply higher vs. the EUR from late Friday levels. Part of its gains resulted from a recapture of excessive weakness following the May U.S. employment report at the end of last week. Also a comment by ECB President Trichet after the central council meeting that hinted the central bank is considering a â€śsmallâ€ť, +25bps, rate hike after its next meeting was a weight.
- In press comments Monday, ECB President Trichet pointed out that he never had said that there was a group of ECB members in favor of a series of rate hikes. One has to wonder if this was damage-control by the ECB or a signal to money markets not to start speculating about more than one tightening. The ECB still has room to do nothing at its next meeting.
- Efforts by the EUR/USD to distance itself from the neutral 1.5500 line ran into some trouble on Monday. The psychological 1.60 level is still not in play. The GBP is higher vs. the USD, and EUR/GBP has eased significantly.
- The USD/JPY started out higher on Monday. This might have been a signal. There are reports that Japanese importers were large USD buyers in Asia. The EUR is still up vs. the JPY. The CHF/JPY is now higher. The CHF is now steady against the EUR.
- Oil has eased following its Friday spike. Gold is lower. The commodity currencies are weaker.
- Asian equities ended mostly lower. European bourses closed mixed to lower. U.S. equities are ending mixed.
- JGB prices gained today, while the prices on E-Z bonds are widely mixed. The 2 vs 10s has steepened. U.S. bond prices are lower. The spread on the E-Z minus U.S. 2-yr note spread was last -195bps, +29.
- Tuesday is an active session for data. See the GVI Calendar for the full schedule of key data. U.S. and Canadian trade data are due along with a Bank of Canada policy decision.
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