Thursday June 12, 2008 - 20:18:56 GMT
Share This Story
Global-View - www.global-view.com
FX Blog- Market Snapshot Far East Open for 13 June 2008
GVI Forex john 20:12 GMT June 12, 2008 Edit Delete
GVI Market Snapshot- Far East Open for June 13, 2008
Profile of Key Markets:
- The USD is sharply higher vs. the EUR from late Wednesday levels. Day to day swings have been suggesting that this is a market with no conviction. On balance, dealers have become comfortable with the notion of a rough 1.54-1.58 trading range for the pair. Below 1.5365 initially could change that perception. For now, we have not been shaken from the view that EUR/USD 1.5500 represents neutrality.
- Dealers are also awaiting the outcome of the Irish vote on the EU Lisbon Treaty. Results are expected on Friday and the vote is thought to be a close one.
- Dealers have been defensively positioning long the USD ahead of the Friday and Saturday G8 FinMin (not central bankers) meeting in Japan. More USD verbal intervention should be expected. We donâ€™t feel that open market intervention is probable at the present time.
- USD demand could also be coming from the proposed $46bln cash bid by Inbev for Anheuser Busch announced today. Talk is that the price will probably go higher.
- The GBP is sharply lower vs. the USD, and EUR/GBP is steady suggesting that the EUR/USD weakness is not the result of a cross play.
- The USD/JPY is higher in line with the better USD tone. The EUR is steady vs. the JPY. The CHF/JPY is lower as well. The CHF is weaker against the EUR.
- Oil is sharply lower despite having after having spiking higher yesterday on another sharp drawdown of weekly crude inventories. There has been a lot of political rumblings about a crackdown on oil price speculation.
- The EUR/USD to oil link was working again during the day Thursday. Gold is lower.
- The commodity currencies are weaker. The AUD/USD has fallen hard. Much softer than expected Australian employment data suggested that the economy might finally be slowing.
- Asian equities closed broadly lower. European bourses closed higher. U.S. equities are trading higher.
- JGB prices closed about steady, while the prices on E-Z bonds are weaker. The E-Z 2s vs 10s spread flattened. U.S. bond prices are lower. The E-Z minus U.S. 2-yr note spread was last -161bps, +13.
- See the GVI Calendar for the full schedule of key data. U.S. Consumer Prices and the University of Michigan Sentiment survey are the highlights.
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."