The biggest move in the FX markets today is in the Japanese Yen. The 7% decline in the Nikkei overnight kicked off a wave of deleveraging in the financial markets as investors around the world hit the panic button. What is interesting about the move is that no one is buying U.S. dollars, a currency that generally performs well during risk aversion. The reason is because to de-lever means to reduce positioning and over the past month, investors had been gradually increasing their exposure to U.S. dollars. As a result, they are cutting that exposure today. The move in the dollar has nothing to do with U.S. fundamentals as jobless claims dropped more than expected and house prices increased 1.3%. After rising to 363K ...
May 24th, 2013 - Market Drivers May 24, 2013 IFO beats handily driving EUR/USD towards 1.3000 Nikkei seesaw putting USD/JPY on roller-coaster Nikkei 0.89% Europe 0.56% Oil $94/bbl Gold $1387/oz. Europe and Asia: NZD Balance 157M vs. 475M EUR German GDP -1.4% vs. -1.4% EUR German GfK Consumer Confidence ...
May 23rd, 2013 - Daily FX Market Roundup 05-23-13 Dollar and the Lack of Safe Haven Demand EUR - Lifted by Stronger PMIs Is the USD/JPY Rally Over? GBP – To Remain Weak and Sensitive to Risk Appetite AUD – Bounces Off 11 Month Lows Despite Weak Chinese Data NZD – Trade Report Expected this Evening CAD...
May 23rd, 2013 - The biggest move in the FX markets today is in the Japanese Yen. The 7% decline in the Nikkei overnight kicked off a wave of deleveraging in the financial markets as investors around the world hit the panic button. What is interesting about the move is that no one is buying U.S. dollars, a currenc...
September 10th, 2012 - In the first week of September the European Central Bank lit the EUR/USD on fire with its latest acronym to save the euro – OMT, short for “Outright Monetary Transactions.†For most investors, OMT is just another ingredient in the central bank’s alphabet soup which already ...
