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The dollar rose against major currencies yesterday after bleak U.S. jobs data renewed concerns about the economy and enhanced the greenback’s safe-haven appeal. The Euro was down 1.1 percent at $1.4002, retreating from $1.4201 hit on Wednesday, its highest level since early June. Adding to pressure on the Euro were comments from the European Central Bank President Jean-Claude Trichet that…

After having hit a high at 1.4201 yesterday on reports the Vice-finance minister of China wasn’t aware of his government’s request to discuss use of the IMF’s SDR as an alternative. This doesn’t come as a surprise on the part of the Chinese government as we all know they are the largest holders of foreign exchange reserves and U.S Treasuries and have been very vocal about the massive spending on…

The Canadian dollar fell against the U.S. currency on Tuesday as lower U.S. consumer confidence data for June dampened hopes for an early economic recovery, and pushed the market toward safer havens. Sterling reached an eight-month high against the dollar on Tuesday due to surprisingly strong UK house price data, but its gains fizzled out after a moderating decline in U.S. home prices which later…

The Yen slipped across the board on monday due to higher oil price, gains in share prices and a better-than-expected sentiment in the euro-zone which boosted hopes of a global recovery, helping investor risk appetite. Investors seem to feel more confident these days and risky assets are bid again. The EUR carried on the trend set in London with continued buying versus the USD, consolidating on…

As we draw nearer to this year’s half-way mark it is clear that reports of a V-shaped recovery back in March we’re greatly optimistic. The sheer complexity of the global economic crisis and it’s repercussions on business climate has greatly hampered the economy’s ability to right itself. The rapid cutting of interest rates, vast amounts of liquidity injections have central banks tackling…

Thursday’s trading can best be described as ‘scrappy’. There was no dominant theme for traders to cling to so they were cautious and reverted to type, following equity markets moves as a signal for risk appetite and as a barometer for the Dollar. The CHF seemed to be the subject of intervention (again there was no official comment from the SNB) as, on two occasions, the Swiss Franc took a sharp…

While the FOMC failed to excite the market, it was SNB’s currency intervention which provided the day’s fireworks. Overall, the Fed stuck to the company line (perhaps a slight hawkish lean) stating “conditions in financial markets have generally improved in recent months” and “the pace of economic contraction is slowing” in regard to growth. In regard to inflation, stated “substantial resource…

In light trading, risk appetite has stabilized with USD weakening, while equities and commodities temporarily halted their downside slide. The S&P closed slightly higher, CRB Commodity Index closed back above its 200d MA on the back of stronger crude, which closed up $2.07 to $69.22bll. However, the rationale for the sudden shift in sentiment for a third time this week is difficult to…

With any market move, pundits (such as myself) are forced to assign a rationale. This has been the case with the recent sell off in commodity prices and spillover effect into FX. Yesterday, price move were conveniently attributed to the World Bank’s downgrade of its global growth estimates. We have our doubts that an international organization forecast would have such a profound on market…

Uncertainty seems to be the core theme in FX markets, with the USD stuck in limbo. With a busy week ahead, markets are taking a wait and see approach to pricing. With Eurozone PMI, US durable goods, UK CBI distributive trades, Swiss KoF and the FOMC announcement on the docket, we would expect the EURUSD to be pushed out of its subtle bearish channel (horizontal support 1.3750). The key event for…