Members login
Forex - EUR/USD, EUR/AUD Flows - EUR loses out to the AUD as German data hurts
Written by article default Friday, 05 November 2010 10:06
Yield has certainly been the winner this week, as reserve managers and alike continue to diversify out of USD's. The EUR looked as though it was going to be the major beneficiary in the wake of the Fed's confirmation of an asset purchase programme, but fresh concerns over German growth, through sub forecast factory orders, added to Euro zone worries. Add in the ongoing troubles in the peripheral economies and this week's EUR/USD rally was unlikely to hold on to better levels. In contrast, AUD has remained well supported throughout, with stocks and commodities in buoyant mood - although flat on the day today. EUR/AUD has posted a near 2 big figure loss over the last 24 hours as a result, having breached 1.4035 earlier today in Asia. It has been 1 way traffic since, with techs seeing scope for a possible extension into the mid 1.3600's. SM
Forex - SPZ0, USD/YEN Flows - Not all one way
Poor German data adding a little more weight to the EUR, and encouraging even more covering of short USD positions across the board. This has seen a number of the other counters including CHF, sterling, AUD and even YEN lose a little ground. At the same time, the USD/YEN recovery is still only small, and is still short of 81.00, and not far enough away yet from the perhaps magnetic 80 options. In the meantime, equities, though softer on the day are still relatively firm in context. C.F.
Forex - EUR/NOK, NOK/SEK Flows - data lures NOK buyers back in, Oil will help
Better than expected production figures from Norway should see more buyers of NOK returning to the fold after the squeeze that saw many exit EUR/NOK shorts in the latter half of October. We dare say that many will throw the recent rally in oil prices behind the rationale in the immediate plan to test supports at 8.0510 and 8.0445. PB
Forex - USD/YEN, AUD/YEN Flows - BoJ Shirakawa: not competing with Fed QE; Resona
EUR, AUD still supported on dips, rising on Asian, sovereign, account demand, pushing EUR back up to 1.4210-15, but capped by Irish concerns. Aussie edging toward post 1983 Float high of 1.0177, but eye any RBA concerns, commercial offers. AUD/YEN at 82.05-10, USD/YEN at 80.67-70 - with rising Aussie above Parity, pushing AUD/YEN above USD/YEN. Some focus on BoJ Shirakawa after BoJ meet. BoJ Gov Masaaki Shirakawa says expanding asset buying fund a strong policy option. Does not see Japan and US in a monetary easing competition. Fed's latest easing does not immediately remove US economic uncertainty. While focus on Resona, will announce revitalisation plan at 0800GMT. Reports Resona plans $6.2bln (Y500bln) new shares - eye any foreign demand for the shares, or USD/YEN demand. Bids 80.40-50. WL5 Nov 2010AUD/YEN