After a brief “hiatus,” the Swiss Franc is once again rising, and is now dangerously close to the .50 CHF/EUR “line in the sand” that spurred the last two rounds of Central Bank Intervention. Both from the standpoint of the Swiss National Bank (SNB) the Franc’s appreciation is vexing, while from where ordinary investors are... »
Sterling extended the rebound that started on Monday. The move was mainly technical in nature, but the eco data reinforced the price action. The yen declined a bit further after recent ‘verbal interventions’ from the Japanese Finance Minister, but we have the impression that the move has no strong legs. more from... »
The USD traded higher yesterday against most major currencies with DXY approaching 77.45 resistance level reaching 77.33. A break above 77.45 would suggest further rally of the dollar towards 78-79 levels. US equities tended to drop yesterday with S&P 500 and Dow Jones Industrial Average falling 0.2% and 0.6% respectively…. more from... »
The South Korean central bank seems to be concerned regarding the impact of the unusual fiscal policies adopted to stabilize the entire economy on the financial system. In this sense, it vows to closely monitor the developments seen in asset prices, crediting and cash flows within the financial markets. more from source... »
In the currency markets, the dollar fell back below the JPY90 mark, weighed down by exporters’ sales, while the euro was also lower against the yen but up against the dollar. Dealers said the dollar and the euro were supported by month-end demand from Japanese importers for account settlement, while… more from... »
In currencies, Japanese Yen reversed some of the recent declines, rallying sharply across the board after speculation that BOJ may decide in October to allow corporate bond purchase programs to expire as scheduled in December. USD/JPY retreated below 90.00, while EUR/JPY fell from 132 to 131. In European FX, the… more from... »
As we have been writing about before, the FDIC is running out of money after 140 bank failures. The agency is now proposing to let banks pay 3 years of premiums in order to recapitalize the Deposit Insurance Fund. This amounts to around B for the four biggest US banks… more from... »
When it comes to consumer confidence, it would appear that the UK is now riding high above the US, a sharp contrast to the actual performance of the respective economies. Yesterday, US consumer confidence disappointed with a weak 53.1 reading, down from the previous month’s 54.5 and an expected improvement… more from... »
Today’s trading in Asia was accentuated by the fact that in Japan it was month end, quarter end and fiscal half year end, thus pushing and pulling the yen, but with the yen ultimately higher as the session wound down. USD/JPY looked robust early as it pushed close to 90.40… more from... »
Currently there is a lot of political and central bank focus on exchange rates. Yesterday we saw some rare political backing of the greenback from Trichet and fellow ECB member Nowotny. But also Sterling continues to attract a lot of attention. The market is still wondering if there will be… more from... »