Edit
) no-repeat top center;background-size:cover'>

US Q1 GDP: Recovery Intact, Deflation Risk Remains

April 30, 2010
The first look at Q1 US GDP was largely in line with expectations. The 3.2% annualized pace was slower than the 5.6% of Q4 09, but every one recognized that that pace was not sustainable. Although growth seemed more solid, price pressures eased, further underscoring the lack of price pressures. Despite then the slightly above trend growth for the …
US Q1 GDP: Recovery Intact, Deflation Risk Remains US Q1 GDP: Recovery Intact, Deflation Risk Remains Reviewed by Marc Chandler on April 30, 2010 Rating: 5
Edit

Greece and Japan in Focus

April 30, 2010
There are two main forces at work today in the global capital markets. The first is the signal from various sources that the aid package for Greece is at hand, following new substantial savings by the Greek government. It now looks like something could materialize over the weekend.
The second force is month-end consideration as positions and hedge…
Greece and Japan in Focus Greece and Japan in Focus Reviewed by Marc Chandler on April 30, 2010 Rating: 5
Edit

Greece Optimism and Month-End Dominate

April 30, 2010
The US dollar is surrendering its recent gains against most major and emerging market currencies today amid reports that new substantial Greek savings (24 bln euros) will be sufficient to spur a larger (100-120 bln euro) aid package that could be ready in days. The yen has also suffered in this less anxious environment. Polls suggesting the Tory’s…
Greece Optimism and Month-End Dominate Greece Optimism and Month-End Dominate Reviewed by Marc Chandler on April 30, 2010 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Did the Swiss National Bank Show its Hand?

April 29, 2010
There is a suspicion in the foreign exchange market that the Swiss National Bank intervened forcefully yesterday, even if quietly, and may have been in today as well. The SNB rarely confirms intervention. Confirmation is often only available when the quarterly reserve figures are released.
Much to the surprise of the market, which thought Swiss fr…
Did the Swiss National Bank Show its Hand? Did the Swiss National Bank Show its Hand? Reviewed by Marc Chandler on April 29, 2010 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Newstream Turns Market Cautious

April 29, 2010
Many if not most foreign exchange participants understand that the short euro position is a crowded trade and that this leaves the market vulnerable to a short-covering bounce on a favorable news development. However, fundamentals and sentiment suggest there will be selling into euro bounces. In the European morning euro has been lifted through ye…
Newstream Turns Market Cautious Newstream Turns Market Cautious Reviewed by Marc Chandler on April 29, 2010 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Euro Bounces; Like a Dead Cat?

April 29, 2010
The US dollar is somewhat softer today as the market takes a pause to consider recent developments. News that Fitch reaffirmed its AAA rating for Spain, despite S&P’s move yesterday, and heightened speculation that European officials are working on a larger multi-year fund for Greece, and a relatively smooth Italian bond auction, are helping t…
Euro Bounces; Like a Dead Cat? Euro Bounces; Like a Dead Cat? Reviewed by Marc Chandler on April 29, 2010 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

FX Price Action

April 28, 2010
The euro traded down to about $1.3143, which has not been seen in nearly a year. Although it found a bid there as news wires announce a number of official press conferences in Europe as officials try to calm market anxiety that the EU/IMF negotiations with Greece may include a debt restructuring. Recall that when S&P slashed Greek’s ratings ye…
FX Price Action FX Price Action Reviewed by Marc Chandler on April 28, 2010 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Europe Dominates

April 28, 2010
The US dollar is generally firmer as the European debt crisis escalates and dominates the global capital markets. As was the case in the post-Lehman environment, the demand for dollars is just as much a function of securing funding as it is a safe haven.
Ironically, sterling has been sold-off harder than the euro today. Investors continue to try t…
Europe Dominates Europe Dominates Reviewed by Marc Chandler on April 28, 2010 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Two Additional Points About Greece

April 27, 2010
First, note that Moody's rating for Greece is A3, which is the same as A-. As long as one rating agency has Greece BBB- or above, the ECB will still allow its use as collateral. Of course the S&P aggressive move is significant and cannot be for European banks, who hold Greek bond, including Greek banks themselves, but Greece is thus far no…
Two Additional Points About Greece Two Additional Points About Greece Reviewed by Marc Chandler on April 27, 2010 Rating: 5
Powered by Blogger.