Wednesday saw a lackluster day?s trading as the market awaited the FOMC interest decision. Equities rose on the potential establishment of a ?bad bank? in the US to purchase toxic assets. For most of the day USD/JPY traded around the 89.50 area where there were a couple of large expiries while EUR/USD ebbed and flowed with talk of Middle Eastern buying countering Eastern European and Asian… (more…)
The USD and the JPY during Asian session headed for their biggest monthly gains versus the EUR since October as growing evidence of a global slowdown increased. EUR/JPY is down 180 points to 114.97, EUR/USD fell to a low of 1.2876, and GBP/USD fell 100 points to 1.4190. Yesterday’s Wall Street session closed lower, as financials and weaker than expected US data weighed on sentiment. The major… (more…)
With US markets closed for the Martin Luther King holiday, focus moved to European stocks and all the action was in the banking sector which continues to hemorrhage. With RBS announcement yesterday, the market awaits details of the UK government?s proposal to insure banks? toxic assets, but with increasing fears of nationalisation, risk sentiment has not been spared. The sharp drop in European… (more…)
The yen weakened for a second day against the dollar and the euro as the tightness in risk proxies extended on the news from the weekend that the Japanese government is looking to offer public funds to non financial firms. We saw the EUR rallied more than 100 pips from its low. The yen declined to 89.93 against the dollar as of 7:42 a.m. in London from 89.10 late yesterday in New… (more…)