Submitted Sep 7, 2011|From forexblog.oanda.com|1 comment

Yesterday’s announcement that factory orders in Germany plunged 2.8 percent in July sent shockwaves through the Eurozone. The poor showing had investors scrambling on fears that Germany may no longer be in a position to serve as the “engine” to ...

Submitted Sep 7, 2011|From forexblog.oanda.com

Merkel has taken much heat domestically and continues to face resistance in Germany in handling of the Euro-zone crisis. This past weekend, her party was stung by a series of party losses in local elections. This morning’s German Constitutional ...

Submitted Sep 2, 2011|From forexblog.oanda.com

The playing field is battered and bruised this morning as we wait for NFP. The EUR has buckled, the CHF has risen, global bourses see red and bond spreads have widened as suspect toxic positions are diluted. The paring of long stale EUR positions ...

Submitted Sep 1, 2011|From forexblog.oanda.com

It’s a thin market, liquidity at a premium, a holiday weekend and now we get a disastrous set of Euro-zone manufacturing data, a day ahead of the highly anticipated NFP report. The market has been slicing through the EUR like knife through butter ...

Submitted Aug 31, 2011|From forexblog.oanda.com

Wednesday’s release by Statistics Canada revealed that for the three months ending in June, the Canadian economy contracted by 0.1 percent. With a recession typically defined as two or more consecutive quarter of negative growth, Canada is already ...

Submitted Aug 31, 2011|From forexblog.oanda.com

It’s the last week of unofficial holidays and this thinly traded market should probably savor these last few days before the rest of the market participants head back to the grindstone. What have we to look forward to this morning? ADP and Chicago ...

Submitted Aug 30, 2011|From forexblog.oanda.com|6 comments

The Swiss franc declined 0.6 percent to 82.09 centimes to the U.S. dollar in mid-day trading in London today. The pullback is based largely on speculation the Swiss National Bank will continue its efforts to weaken the currency. Investors have been ...

Submitted Aug 30, 2011|From forexblog.oanda.com

Futures fund dealers certainly got the jump in the o/n session and have been happily sitting on their pre-sold positions. The EUR this morning remains choppy, susceptible to month-end flows from real demand players. The currency has been playing ...

Submitted Aug 29, 2011|From forexblog.oanda.com|2 comments

On July 21st, Eurozone officials together with the International Monetary Fund agreed to provide Greece with a second bailout package. This bailout became necessary when Greece found itself unable to borrow funds at an acceptable rate. The premium ...

Submitted Aug 29, 2011|From forexblog.oanda.com

Will we get to see an extension of last weeks price action this morning? With London on holidays and New York slowly getting back to normal, the interest may not be there today. However, it’s times like this when liquidity at a premium, has a ‘big’ ...

Submitted Aug 26, 2011|From forexblog.oanda.com

Federal Reserve Chairman Ben Bernanke used this years Economic Symposium to challenge Fed policymakers to “make the difficult choices that are necessary to put the country’s fiscal house in order”. Bernanke also repeated last year’s message that ...

Submitted Aug 26, 2011|From forexblog.oanda.com

Bernanke is unlikely to announce any new easing initiatives at todays ‘market hyped’ gathering in Jackson Hole. Dallas Fed Fisher has already stated this week that the Fed has no intention of announcing ‘some magical new policy’. Besides, others ...

Submitted Aug 25, 2011|From forexblog.oanda.com|10 comments

Despite Euro-zone sovereign bonds continuing to be sold off, European Banks funding under stress with CDS at record highs, Greenspan believing that the common currency will break down, a plunge in the German ZEW investor confidence reading, an ifo ...

Submitted Aug 24, 2011|From forexblog.oanda.com|19 comments

The lack of a EUR selloff this morning, in the wake of a poor Euro industrial order print (-0.7%) and ifo data (108.7) seems to prove that the market is no mood to go heavily short ahead of Bernanke’s speech this Friday. Mind you, the ECB stepping ...

Submitted Aug 22, 2011|From forexblog.oanda.com|1 comment

In an interview earlier today on German television, Chancellor Angela Merkel expressed her clearest opposition to date against the concept of a “eurobond”. The use of a eurobond – essentially a security backed by all the Eurozone economies – has ...

Submitted Aug 19, 2011|From forexblog.oanda.com|3 comments

Citing a sharp decline in growth and an uncertain political climate, Citigroup Inc. and JPMorgan Chase & Co. both reduced their outlook for the U.S. economy for the remainder of the year and into 2012. JPMorgan analysts issued a note to clients ...

Submitted Aug 19, 2011|From forexblog.oanda.com|6 comments

Capital markets reached a tipping point yesterday, pushed over by Euro bank funding concerns and weaker US data. The market has been seeing red from the bourses ever since. In currencies, it has been eerily quiet, even with the fall of global risk ...

Submitted Aug 18, 2011|From forexblog.oanda.com

What have we got this morning that going to keep us from falling into another stupor? A trifecta of US data. The markets gets to be updated on the US manufacturing outlook, employment and CPI. Consensus has the Philly Fed manufacturing survey ...