Risk Demand Strong; Euro, Crude Oil Gain
Demand for risk appears broad-based and quite strong in early trading, potentially signaling renewed strength in the short-term. The euro is gaining sharply on the session against the US dollar, which speaks volumes for risk appetite. Last priced at 1.2290, the EUR/USD traded above the 1.23 handle earlier in the session. Crude oil, too, is… Continue Reading
Morgan Stanley: ‘Elevated’ Risk of G3 Intervention
Morgan Stanley sees an “elevated threat” of a currency intervention by the central banks of the U.S., Europe and Japan going forward. According to Sophia Drossos, co-head of currency strategy at the firm, a joint intervention by the Group of Three is growing increasingly likely. Ms. Drossos adds, “The strongest warning signals in our model… Continue Reading
Markets Bounce Off Lows on Weak Risk Demand
Equities markets and broader appetite for risk have recovered from their session lows, as the German parliament passes the eurozone bailout and a key technical level was revisited. However, riskier assets are positioned to resume their declines going forward. The Dow and S&P 500 shot to positive territory and the US dollar weakened, right after… Continue Reading
The Great Unwind: Aussie, Yen and ‘Global Growth’
The AUD/JPY, which gauges the health of the carry trade — and, by extension, the projected health of the global economy – is suffering a record selloff in today’s session. The massive unwind of carry bets has been coupled with a surge in call buying on the Japanese yen and signals the realization among traders… Continue Reading
Risk Trade Blows Up (As Warned Repeatedly)
The risk trade is once again under attack, with crude oil, gold and equities all sharply lower and the US dollar and Japanese yen generally higher. Crude oil contracts for June delivery are down $1.15 per barrel to $68.70 per barrel. Gold, too, is falling in early trading, last priced at $1,187 per ounce —… Continue Reading
Barclays: USD/JPY May Reach 110.00 on Ichimoku – CORRECTION
If the US dollar closes above 95 yen this month, it may continue to appreciate to 110 yen in a one- to three-year period, according to Barclays Capital. [Correction: The USD/JPY need not close above 95 yen on the month. Rather, it needs only maintain a positive monthly close. The US dollar will, however, need… Continue Reading
UBS: “Once in Decade” Sentiment Shift to Drive US Dollar Higher
The US dollar is set to strengthen against the euro, yen and pound as a result of a “once in a decade” sentiment shift, according to UBS AG. Analysts at the bank believe that the US dollar will come to be identified with high yield and relative economic strength. Risk seeking investors should, then, flock… Continue Reading
Daily Forex Signal: Buy GBP/JPY
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GBP/JPY Surpasses Friday Highs; Breakout May Be Coming
The GBP/JPY has surpassed last week’s highs in early trading, inching ever closer toward breakout territory. As reported last week, a break above the 145.00 handle may signal upside to 1.50, as an overwhelming presence of shorts will scramble to cover their positions. Moreover, the GBP/JPY is up against both short- and medium-term resistance near… Continue Reading
GBP/JPY Nears Short-Term Resitance at 145; More Upside Expected
The GBP/JPY is trading higher into the Friday close, as shorts make way for a potential, if not imminent, rally. Last trading at 144.65, the real test for a sustained move higher for the GBP/JPY will come at the 1.45 handle. In each of its two previous attempts since early April, the GBP/JPY has shied… Continue Reading
