New York Session
Month-end mayhem continued to dominate the NY trading price action in a session where inter-market correlations broke down. US equities dropped nearly -1% on the heels of the slip in global stock marts. Not even better than expected Chicago PMI data could bolster the market today. The report printed an above consensus 50 read for August, putting it right on the midpoint between growth and contraction. The details suggest the results were largely influenced by the government’s ”Cash for
U.S. Update: Dollar down on commodities
What happened in Asia and Europe Majors started the week almost unchanged, except for Japanese Yen, that after an historic election victory for Japan’s main opposition party, appreciated against major rivals, with USD/JPY falling to as low as Y92.54 – its lowest level since July 13. The EUR/JPY fell to Y132.17, its lowest level since July 17, while GBP/JPY reached 150.00 zone. Later strong fall in Asian shares, lead by Shanghai composite that lost 5.3% triggered some upside
USD off highs, Chicago PMI beats expectations
USD: Mixed, USD pares equity market inspired gains, Chicago PMI stronger than expected JPY: Higher, Democratic Party wins in landslide, risk aversion spikes as the Shanghai Index plunges EUR : Higher, EU CPI falls less than expected but remains in negative territory CHF : Higher, KOF index rises more than expected, Jordan threatens to intervene if CHF rises GBP : Higher, Hometrack prices rise for the first time in two years, concern about rising UK debt CAD and AUD : AUD higher & CAD
U.S. Forex Market Commentary
EURO The euro moved higher vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4365 level and was supported around the $1.4255 level. The European Central Bank convenes on Thursday and is not expected to change monetary policy at that meeting. The ECB today released a report that notes there is systemic risk in the credit default swaps market because the ten most active counterparties account for up to 72% of default swap exposure surveyed by
For the Week Ending August 30th, 2009
General Comments Last week saw very little in the way of real price action and set up some congestion ahead of volatility expected this week. I continue to expect a strong dollar rally, stock market decline and weaker commodity prices ahead. Energies Crude oil resisted out below the recent highs, suggesting a weak buying interest at these levels without further bullish catalysts. The real story here is the fall of natural gas, disproportionately collapsing compared to other energy markets. I
Advertisment
