The Bank of England stole the headlines this morning as it delivered its second Inflation Report of the year. Its message was fairly grim: the UK won’t regain its 2007 level of output until 2018. The biggest threat to the UK economy right now according to the bank is the impasse in the Eurozone (something
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Equities Asian markets dropped on Tuesday, as fears of a Greek exit from the euro escalated. The Nikkei lost .8% to 9901, the ASX 200 fell .7%, and the Kospi shed .8%. China’s Shanghai Composite eased .3% to 2375, while the Hang Seng rallied .8%, snapping a 7-day losing streak. European indexes extended their losses,
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Published at 02:14 (GMT) 16 May AUD/USD hit fresh 5-month lows of 0.9917, lowest since Dec 20 0.9889 on broad based selling from hedge funds, macro names and US houses, Aussie banks. Focus on break of 0.9900 option barriers and more below 0.9875/0.9850. Speculation of more RBA cuts, with focus on at least 25bps cut
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DailyFX – Gold Daily Forecast

The largest tech IPO in history takes place in the next few days as Facebook attempts to live up to a 100 billion dollar valuation. With share prices expected to be between $ 25 and $ 32, investors are trying to be a part of the next Google. Some of you may be
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EUR/USD The pair settled the session lower after it was reported by Greek Presidency source that leaders in Greece have failed to agree to form a coalition government and that another round of elections will take place. Separately to this, according to government sources, the country will meet its financial obligations in full (referring to
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Published at 11:11 (GMT) 15 May With Eurozone data coming mixed, relatively good GDP for Germany, not so good for everybody else and mixed EZW at best, EUR and equity market is making a rather feeble comeback after yesterday pummelling. That backdrop is helping MXN to rebound just below 13.70, after a very fleeting attempt
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DailyFX – Gold Daily Forecast

The appetite for risk remains non-existent in light of the flaring situation in the Eurozone and signs of economic slowdown in China. The Greek slide is accelerating out of control, the Spanish yield hit record highs and Moody’s downgraded Italian banks. The bloody May can get even bloodier. I wouldn’t be surprised to hear another
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Published at 23:12 (GMT) 14 May 15 May EUR/AUD Daily 22:48 GMT – Bulls are reluctant to push above the consolidative high at 1.2920 and settling lower, indicating further consolidation in the making during intraday trading. Support seen at 1.2826 and slippage below latter will expose the lower end of 1-1/2 week consolidation at 1.2770.
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One of the bigger headlines over the weekend was the decision in China to reduce the Reserve Ratio Requirements (RRR) for commercial banks. This is done as a move to stimulate lending and encourage consumer sales but the markets largely ignored this development, as equity markets and high yielding currencies continue to trade at last
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EUR/USD The pair settled the session sharply lower as market participants reacted negatively to the lack of progress in the formation of the collation government in Greece, as well as weekend state elections in Germany which saw voters shift leftward. The risk averse sentiment saw the pair erase option barriers at 1.2875 and 1.2850 level.
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EUR/USD Weekly Close: 1.2917 Daily High/Lows: Fri May 11 1.2956/1.2904 Thu May 10 1.2978/1.2923 Wed May 9 1.3006/1.2910 Tue May 8 1.3064/1.2981 Pivots: S3: 1.2852; S2: 1.2872; S1: 1.2892; P: 1.2924; R1: 1.2944; R2: 1.2976; R3: 1.3008 EUR/USD: Risk aversion was the theme of last week’s trading, with commodity currencies being sold against the dollar
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On Friday, EUR/USD basically traded sideways mostly in the lower half of the 1.29 big figure. The decline of the previous days slowed, but comments from several EMU policy makers in one way or another suggested that a Greek exit is no longer a taboo. This suggest that the EMU crisis is moving into a
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Published at 02:45 (GMT) 14 May AUD/USD finally broke Parity, 1.0000 options to fresh 5-month lows around 0.9996, low since Dec 20 0.9889, and still falling. More options, and stops at 0.9980/0.9950. Interest to sell on rallies as hedge funds, models, Aussie banks and US houses, UK clearers, Europeans, Japanese sold. Some reserve managers, sovereigns,
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The EUR/USD maintains the bearish tone; trading below the key 1.3000 handle. The overall bearish sentiment that was triggered by the political scene in France and Greece continues to dampen risk appetite, while markets await any development in the government creation process by the Greek political parties.    The pair is fluctuating within a relatively
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Equities Disappointing trade data weighed on Asian markets on Thursday, as imports grew much less than expected. The Nikkei declined .4% to 9010, the Kospi slid .3%, and the Hang Seng dropped .5% to 20227. Ironically, the Shanghai Composite inched up .1%, but the trade data limited gains. Australia’s ASX 200 advanced .5% following a
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Greek election: The Syriza party did not succeed in forming a new government and now the opportunity has been given to the Pasok party – it is not expected, however, that this party will be successful. Subsequently, the president will be given the opportunity and if he fails, a new election will be called. The
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Gold futures rebounded by $ 1.3 on Thursday to end at $ 1,595.5 after falling 3.1% this week, the worst week for gold since mid-March. Stoxx and Euro/dollar also rebounded on some positive news out of Europe. The European Financial Stability Facility has approved the next payment to Greece, Spain nationalized Bankia and
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This is the fifth day without a firm government in place for Greece; if a coalition is not found soon then we could be heading back to the polls, which open up the possibility of a prolonged period of Greek political instability. There was some hope this morning of the Conservatives forming a coalition with
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FXstreet.com: Technical: Technical Market View

The appetite for risk is very limited ahead of the US open after declining sharply for nearly two weeks amid uncertainty in the Eurozone and the fragility of the US economic recovery. The market should remove even more risk from the table following news that JPMorgan s chief investment office incurred trading losses that could
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Forex News and Events: In light of the current political turmoil in Greece, the EUR has gradually slipped to a three-month low at 1.2905 after a period of trading in a highly volatile range. The move coincides with the election on May 6th of anti-austerity Greek fringe parties, instead of the mainstream PASOK or New
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Outlook: We continue to worry that the euro can get a boost from favorable news, any favorable news, especially if Greece were to surprise with a new government on Sunday. A new government doesn’t solve any of the economic problems, but the bold assertion of Greece choosing to remain in the eurozone is a very
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DailyFX – Gold Daily Forecast