Christine
04-16-2012, 04:13 AM
The Chinese government widened the USD/CNY trading band from 0.5% to 1.0%
Traders fear an increase in volatility (http://www.forexlive.com/blog/2012/04/15/more-on-the-effects-of-chinas-widening-of-its-usdcny-trading-band/)and this led to some general risk-off sentiment
Nevertheless, many commentators see the band widening as a vote of confidence (http://www.bloomberg.com/news/2012-04-15/china-widening-yuan-band-shows-confidence-in-strength-of-economy.html)in the Chinese economy
Sarkozy calls for more ECB involvement (http://www.bloomberg.com/news/2012-04-15/sarkozy-campaign-speech-targets-ecb-s-role-in-boosting-growth.html), putting himself on collision course with Merkel
Japan FinMin Azumi: IMF contributions (http://www.forexlive.com/blog/2012/04/16/japan-mof-azumi-amount-of-imf-contribution-not-yet-fixed/)not yet fixed
South Korean import prices (http://www.forexlive.com/blog/2012/04/15/south-korean-import-prices-3-5-yoy-vs-5-2-in-february/)ease in March
BOK adjusts growth and inflation (http://www.forexlive.com/blog/2012/04/15/bank-of-korea-sees-2012-consumer-inflation-at-3-2-gdp-growth-at-3-5/)forecasts slightly lower
New Zealand food price index (http://www.stats.govt.nz/browse_for_stats/economic_indicators/prices_indexes/FoodPriceIndex_MRMar12.aspx)-1.0% MoM
UK economy: House prices (http://www.forexlive.com/blog/2012/04/15/rightmove-uk-house-asking-prices-up-to-pre-crisis-records/)still seen rising
Nikkei -1.5%; Kospi -1%; other regional Bourses -0.5% on average
Gold $1654/oz; Oil $102/bbl; Platinum -2%
EUR/USD and AUD/USD pushed higher in very early interbank trade as some took the Chinese band widening to be a positive for growth prospects but this is more of a medium term effect and the stronger short-term effect is that market volatility is likely to increase and this saw general positional adjustment and risk-off sentiment take hold.
EUR/USD closed in NY on Friday at 1.3070 and traded to 1.3100 in very early interbank trade but risk-off sentiment soon saw some heavy EUR/JPY selling which eventually filled solid EUR/USD bids above 1.3050 before triggering stops below technical support at 1.3030. The DNT barrier at 1.3000 is still in place and heavy buying ahead of that guaranteed a base, but bounces have been quite anaemic. Ranges: 1.3007/90
AUD/USD followed a similar line to the EUR, dominated by risk sentiment and AUD/JPY flows. Solid bids at 1.0310 have provided an intraday base. Ranges: 1.0309/85
USD/JPY has been unable to move, with talk of semi-official bids at 80.50 providing the support but rallies being capped by JPY cross related selling. Ranges: 80.82/99
Cable 1.5820/57 with plenty of interest also shown in EUR/GBP, which is trading very close to a weekly low at .8220. EUR/CHF 1.2018/28
http://feeds.feedburner.com/~ff/forexlive-rss?d=yIl2AUoC8zA (http://feeds.feedburner.com/~ff/forexlive-rss?a=rx9vYe5inb8:mCM2TnsOVHM:yIl2AUoC8zA) http://feeds.feedburner.com/~ff/forexlive-rss?i=rx9vYe5inb8:mCM2TnsOVHM:V_sGLiPBpWU (http://feeds.feedburner.com/~ff/forexlive-rss?a=rx9vYe5inb8:mCM2TnsOVHM:V_sGLiPBpWU) http://feeds.feedburner.com/~ff/forexlive-rss?d=qj6IDK7rITs (http://feeds.feedburner.com/~ff/forexlive-rss?a=rx9vYe5inb8:mCM2TnsOVHM:qj6IDK7rITs)
Read more... (http://feedproxy.google.com/~r/forexlive-rss/~3/rx9vYe5inb8/)
Traders fear an increase in volatility (http://www.forexlive.com/blog/2012/04/15/more-on-the-effects-of-chinas-widening-of-its-usdcny-trading-band/)and this led to some general risk-off sentiment
Nevertheless, many commentators see the band widening as a vote of confidence (http://www.bloomberg.com/news/2012-04-15/china-widening-yuan-band-shows-confidence-in-strength-of-economy.html)in the Chinese economy
Sarkozy calls for more ECB involvement (http://www.bloomberg.com/news/2012-04-15/sarkozy-campaign-speech-targets-ecb-s-role-in-boosting-growth.html), putting himself on collision course with Merkel
Japan FinMin Azumi: IMF contributions (http://www.forexlive.com/blog/2012/04/16/japan-mof-azumi-amount-of-imf-contribution-not-yet-fixed/)not yet fixed
South Korean import prices (http://www.forexlive.com/blog/2012/04/15/south-korean-import-prices-3-5-yoy-vs-5-2-in-february/)ease in March
BOK adjusts growth and inflation (http://www.forexlive.com/blog/2012/04/15/bank-of-korea-sees-2012-consumer-inflation-at-3-2-gdp-growth-at-3-5/)forecasts slightly lower
New Zealand food price index (http://www.stats.govt.nz/browse_for_stats/economic_indicators/prices_indexes/FoodPriceIndex_MRMar12.aspx)-1.0% MoM
UK economy: House prices (http://www.forexlive.com/blog/2012/04/15/rightmove-uk-house-asking-prices-up-to-pre-crisis-records/)still seen rising
Nikkei -1.5%; Kospi -1%; other regional Bourses -0.5% on average
Gold $1654/oz; Oil $102/bbl; Platinum -2%
EUR/USD and AUD/USD pushed higher in very early interbank trade as some took the Chinese band widening to be a positive for growth prospects but this is more of a medium term effect and the stronger short-term effect is that market volatility is likely to increase and this saw general positional adjustment and risk-off sentiment take hold.
EUR/USD closed in NY on Friday at 1.3070 and traded to 1.3100 in very early interbank trade but risk-off sentiment soon saw some heavy EUR/JPY selling which eventually filled solid EUR/USD bids above 1.3050 before triggering stops below technical support at 1.3030. The DNT barrier at 1.3000 is still in place and heavy buying ahead of that guaranteed a base, but bounces have been quite anaemic. Ranges: 1.3007/90
AUD/USD followed a similar line to the EUR, dominated by risk sentiment and AUD/JPY flows. Solid bids at 1.0310 have provided an intraday base. Ranges: 1.0309/85
USD/JPY has been unable to move, with talk of semi-official bids at 80.50 providing the support but rallies being capped by JPY cross related selling. Ranges: 80.82/99
Cable 1.5820/57 with plenty of interest also shown in EUR/GBP, which is trading very close to a weekly low at .8220. EUR/CHF 1.2018/28
http://feeds.feedburner.com/~ff/forexlive-rss?d=yIl2AUoC8zA (http://feeds.feedburner.com/~ff/forexlive-rss?a=rx9vYe5inb8:mCM2TnsOVHM:yIl2AUoC8zA) http://feeds.feedburner.com/~ff/forexlive-rss?i=rx9vYe5inb8:mCM2TnsOVHM:V_sGLiPBpWU (http://feeds.feedburner.com/~ff/forexlive-rss?a=rx9vYe5inb8:mCM2TnsOVHM:V_sGLiPBpWU) http://feeds.feedburner.com/~ff/forexlive-rss?d=qj6IDK7rITs (http://feeds.feedburner.com/~ff/forexlive-rss?a=rx9vYe5inb8:mCM2TnsOVHM:qj6IDK7rITs)
Read more... (http://feedproxy.google.com/~r/forexlive-rss/~3/rx9vYe5inb8/)