The recent theme of USD selling has continued today with GBPUSD breaking above 1.5950, EURUSD breaking above 1.3250 and USDJPY breaking below 86.00.  The USDJPY move was initiated by the Finance Minister’s comments that the “markets decide forex rates” and this was taken in the short term to signify that the MOF won’t be intervening [...]

The week has got off to a risk positive start as equities trade higher, bonds lower and spreads tighter.  GBP has lead the charge in the more constructive environment for risk assets boosted by a number of acquisitions of UK assets from Europe, the US and HK.
The initial response to the US Q2 GDP figure [...]

The ongoing debate about the near term path of the USD continued in earnest today as speculation over possible month end flows pointed to the possibility of substantial USD selling due to the much larger upswing in market capitalizations in the US (in terms of equity benchmarks).  The sharp reversal of AUD strength that was [...]

The financial market trading dynamic is very much driven by sentiment and confidence at the current juncture.  Recent solid equity performance, particularly in the US and Europe as well as the more upbeat macro economic data (most specifically from Europe and the UK) have spurred a more positive risk environment where ‘risk on’ trades have [...]

Today has carried over the theme from yesterday’s trading with little impetus or new stimuli with the USD’s gradual slide being the only real theme.  A lot of attention is being paid by the market to short term technical levels and this seems to be propagating the slide as the risk environment is improving further [...]

Last week the markets had a clear focus on the release of the long awaited European stress tests and the semi annual monetary policy testimony from Fed governor Bernanke.  Both events, whilst causing some modest volatility in the build up to, and during the events, largely left the markets unchanged.
The USD and equity selling (bond [...]

With the market jostling for position ahead of the release of the European bank stress tests later today short term flows and stop loss orders have dominated across the currency space, with the exception of GBP.
Despite the reluctance of the market to get overexposed ahead of the stress test results the release of the UK [...]

The current trading environment in financial markets has been dominated by the semi annual monetary policy testimony of US Fed chairman Bernanke last night and the upcoming release of the European bank stress test results scheduled for after the (equity) market close tomorrow.
Chairman Bernanke largely reiterated the June FOMC statement in his delivery stating that [...]

It is going to be an interesting game of chess between Obama and Cameron as they both want to appear to the other that ties between the US and UK and not high on their agendas. In truth, despite Obama’s penchant for accentuating the ‘British’ in British petroleum, it is obvious that their respective statements [...]

Despite the results of the European banks stress testing set to be announced on Friday, Ireland being downgraded by Moody’s and Hungary having a E20bn financing deal dramatically removed The Euro has continued it’s inexorable rise to 1.3000.
It appears rather perversely that Europe’s gains have initially been borne out of the ever growing signs of [...]