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Rate Expectations Easing Ahead of ECB, BoE Decisions Australian Dollar Held Under Extreme Pressure after RBA Decision, Statement Benchmark Rates are Falling Across the World as Growth Eases Rate Expectations Commentary Interest rate expectations have eased somewhat this past week. That is remarkable given the recently announced Reserve Bank of Australia decision [...]
The greenback was marginally weaker at the close of an extremely volatile session in North American trade with the Dow Jones FXCM Dollar Index (Ticker: USDollar) off by just 0.08% on the day. Equity markets underwent a massive late day rally that saw all three indices close higher with the Dow, the S&P, and the NASDAQ [...]
US equity futures have already given back a good chunk of Tuesday’s gains, and any reprieve offered on the back of talk of recapitalization of European banks, has been mitigated by the broader risk negative market environment and a downgrade to Italy’s ratings. At this point, talk of a recapitalization of eurozone banks is just [...]
The S&P 500 closed up 2.25 percent Tuesday after a massive 4.1 percent rally in the last hour on, well, nothing at all, except if you count a downbeat Fed Chairman Bernanke and some Dexia/Eurozone rumours. Amidst all this joy Moody’s decided to restrain the markets a bit by hitting Italy with a three-notch downgrade to [...]
Initial powerful losses in Cable Tuesday extended the two preceding day’s decline but these losses were entirely reversed by the close. But the bounce was able to only reverse half of Monday’s net downside and some selling has returned in Asia. It is the downside rejection, however, that is assessed as the key feature. Therefore our call [...]
Stock and commodity markets continue to focus on the impact of weak global growth conditions and the EU debt crisis. The dollar moved back to its strongest levels in months benefitting from the Swiss currency peg, worries ahead of the 9/11 ten year anniversary and an European Central Bank more concerned about weak growth than [...]
What a dramatic week for the Swiss franc. Much has been written over the last few days on the Swiss National Bank’s actions, pushing EURCHF spot from the 1.1200 all the way to where we are now (1.2150), firmly above the 1.2000 floor. In our previous article, we highlighted the implied volatility price action during [...]
ATM VOLATILITIES Pair Spot 1w 1m 3m 6m 1y EURUSD 1.3837 (1.49%) 15 (+0.2) 14.9 (+0.75) 15.2 (+0.45) 15.2 (+0.4) 15.2 (+0.3) USDJPY 77.72 (-0.66%) 11.1 (+0.3) 10.45 (+0) 10.85 (+0.05) 11.2 (-0.05) 12.25 (+0) GBPUSD 1.5967 (0.33%) 11 (+0) 11.45 (-0.1) 12.05 (-0.05) 12.35 (-0.05) 12.55 (-0.05) AUDUSD 1.0538 (0.86%) 12.8 (-0.4) 14.25 (+0.35) [...]
After a momentous move last week and early this week, markets are violently churning and wondering what to do next. It’s tough to find a catalyst that will take us out of this state of affairs, but the unknowns are known. The leading headlines late yesterday and earlier today are related to the ban of [...]
Slowing global trade, weak economic figures and a sovereign debt crisis in the Eurozone (that just does not want to go away) have understandably led to volatile markets in recent times. Is it possible that the weakness in the U.S. has been overstated? Abysmal 2Q GDP report The theatrics on the part of Congress threatened [...]