Risk Aversion Evident Across Markets; Euro Slumps
Investors remain extremely skeptical as to the health of the global economy, pushing Government bond yields to record lows and the euro below $1.23. Government bonds, led by US Treasuries, have enjoyed a stellar first half of 2010, with gains accelerating in recent sessions. Investors continue to pile into safe haven securities, pushing yields on… Continue Reading
Risk Trade Falters on Profit Taking, Housing Data
Riskier assets are back on the decline in trading today, as investors book profits and key economic data disappoints. The Dow and S&P 500 are slightly lower early in US trading while the euro, too, is on the decline. US home construction plummeted in May, signaling more trouble for the housing market than “analysts” have… Continue Reading
Euro, Riskier Assets Fall as Credit Strains Prevail
The euro is succumbing to its longer term downtrend in trading today, as global credit strains become increasingly recognized among market participants. The euro has lost significant ground from its from its May 20 high against the US dollar. Last priced at 1.2405, the EUR/USD traded as high as 1.2671 last Thursday alongside a global… Continue Reading
Gold Falls Below $1,200 on Heightened Fears, Euro Rebound
Gold is trading below the $1,200 per ounce level for the first time since May 11, as heightened aversion to risk has rendered all assets as not quite safe enough. Meanwhile, further downward pressure is coming from a modest rebound in the euro. Last priced near $1,195 per ounce, gold is being sold off alongside… Continue Reading
Germany Announces Ban on ‘Naked’ Short Selling; Euro, Markets Tumble
A ban on short selling in both stocks and bonds in Germany will be enacted at midnight, according to officials in Germany. The ban will affect trades in government bonds, the stocks of 10 financial institutions as well as credit-default swaps. Since the news was released, the euro fell sharply across the board, nearing its… Continue Reading
Risk Aversion Takes a Breather as Euro, Equities Markets Rise
The euro has bounced off its week lows over the past 24-hours as traders cover shorts and test the waters for a potential bottom. The EUR/USD traded as low as 1.2250 yesterday, but has since rebounded toward the 1.24 handle. With no substantive developments vis-a-vis the European (or global) debt crisis, it appears that traders… Continue Reading
EUR/USD Hits 4-Year – 1.2330 the level to watch
The euro traded as low as 1.2233 against the US dollar earlier today, a level not seen since April 2006. The pair has since rebounded to 1.2360, slightly above its 2008-low of 1.2330 — a key support for global markets. The 2008 low for the EUR/USD is a key psychological level for global markets, as… Continue Reading
JPMorgan: Higher Commodity Prices Expected; Oil, Metals Favored
Stronger manufacturing should bolster commodities demand going forward, according to JPMorgan. Analysts at the bank favor oil and industrial and precious metals, as JPMorgan’s global manufacturing indicator nears record highs. The indicator rose to 57.8 last month. Also bullish on commodities are Goldman Sachs and Barclays Capital. According to Goldman analyst Jeffrey Currie, the recent… Continue Reading
Citigroup: EUR/USD to Reach 1.35 on Greek Bailout
The euro will rally against the US dollar, as investors speculate on a more stable eurozone following a Greece bailout, according to Citigroup. Steve Englander, a strategist at Citi, wrote in a research report that the EUR/USD is set to revisit 1.35 as investors realize that the selloff into the Greek bailout was overdone. Mr…. Continue Reading
Soros: Greece Still at Risk of “Death Spiral”
George Soros warns that despite the newest relief package coming out of the EU, Greece remains at risk of a “death spiral.” Noting the high cost of borrowing that Greece continues to suffer, Mr. Soros said, “While it’s better than what the market is currently willing to offer, it’s still rather high. It is a… Continue Reading
