The broad-scale quantative easing measures enacted or forecast by major central banks in past weeks and recently joined by the U.S has seen risk appetite improve. The previously risk averse dynamic to the currency markets saw the greenback gain as much as 23.2% ( Oct 28th Low of 1.2330) against the Euro from the July 15th high of 1.6038. However, in recent weeks this relationship has shifted,… (more…)
Volatility was not shy yesterday as treasury secretary Geithner answered queries about the PBOC governor?s statement that SDR?s could be used to proxy the dollar as the global reserve currency. His initial claims that he agreed with the use of the IMF?s international reserve asset literally shocked the markets, sending the EURUSD as high as 1.3649 (+180pips). After rectification that debasing the… (more…)
It?s been a strong week for risky assets, with the S&P 500 having its best month since 1987. With the tight correlation between equity and FX pricing intact, currency traders will be paying particular attention to the stock markets. Commodity and emerging market currencies (lead by Asia) continue to gain, as sentiment remains positive and investors become more risk seeking. The growing… (more…)
Markets responded positively to yesterday’s US Treasury Department proposed Public-Private Investment Program. The S&P rose a massive 7.1%, while the AUDUSD has broken strongly through the 0.7000 level (currently trading at 0.7040), as risk appetite got a boosted. EM and commodity currencies continue to see a significant demand. Asians currencies were stronger across the board, with the CNY… (more…)
