Archive for September, 2011

German ratification of an enlarged bail-out fund was supposed to calm market nerves going into the weekend, but sentiment remains downbeat in early trading today and we can expect equity markets and risk-on currencies to continue to struggle this afternoon and in the early part of next week. Today is the end of the...
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A sense of optimism looks to be filtering through markets at present. This derives from hopes that the European authorities will be able to ring fence Greece and steer clear of a much deeper and wider contagion to other Eurozone peripheral countries than has already taken place. This may involve a European version of...
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The huge gains in stock markets around the world yesterday were not mirrored by corresponding moves in the currency markets, which saw only modest gains for Sterling against the Dollar and Euro. European politics continue to drive forex spread trading investors’ sentiment between euphoria and despair as first a Greek deal looked to have...
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The forex spread trading markets were calm in yesterday’s trading day as traders and investors alike attempted to interpret the rumours surrounding a Eurozone bailout package that started over the weekend. Stories have been popping up about a €1.7 trillion fund which would be aimed at saving the Eurozone and allow Greece to default...
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The Greenback is gaining all the time in the current environment of increased risk aversion and this is seen in the rise of USD speculative positioning over recent weeks. One would think there is still ample scope for risk aversion to deepen but what does this mean for the Dollar? The USD index is currently...
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The US dollar continued to be heavily influenced by events far from its own shores, as European officials failed last week to offer a plan to halt the region’s debt crisis. Despite this, the dollar actually lost 1.5 cents versus the euro on the week, the EUR/USD spreads closing at 1.38 – but it is...
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Last night, the Federal Reserve announced its latest efforts to stimulate their ailing economy with two new “twists” yet stopped short of declaring an additional phase of quantitative easing. The Fed will buy $400bn worth of long-term Treasury securities by the end of June next year, funded by selling the same amount in short-term...
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Today we get to see if any other members of the MPC have joined Adam Posen, long time advocate of further easing by the Bank of England, in calling for another bout of QE. The timing of the BOE minutes, coming after the IMF announcement yesterday, could not be better for the Government who...
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The Dollar index remains strong, however it seems doubtful that the Greenback is being bought on its own virtues but rather on weaknesses in Europe. Nevertheless, dollar sentiment looks to have turned a corner for the first time since last summer as long positions have risen, suggesting a change in attitude for the currency. Obviously...
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European stock markets posted a second day of consecutive gains on Wednesday as investors continued to bargain hunt in the heavyweight resources sector, whilst European banks were broadly positive, apart from the volatile French banks whose credit rating was downgraded in a widely expected move by Moody’s. The FTSE 100 rose 1% on the day,...
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