Markets Focus on Greece & China

Forex News and Events: Markets are now completely focused on the situation in Greece and possible CNY revaluation. Everything else has just faded into the background. Greece debt came under heavy selling yesterday, with yield reaching 7.40% nearly 450bps over their German equivalent. Greece CDS are trading at nearly 6.50%, now 100bps above already bankrupt [...]

No Proposal From Brussels & Waiting on the FOMC

Forex News and Events: Yesterday’s Eurogroup meeting in Brussels provided nothing of note and we don’t expect anything of real substance from today’s wider Ecofin group of 27. The markets should be hit with comments from EMU nations on their pledge of support for Greece, but will lack an official bailout plan. We still believe [...]

Chinese Prime Minister Wen Jiabao Halts CNY Appreciation Speculation

Forex News and Events: Putting aside the plethora of important economic data releases, this should still be an important event filled week to say the least. In the Eurozone, The Eurogroup of 16 Eurozone Finance Ministers is due to convene in Brussels today, then the wider Ecofin group of 27 on Tuesday. Obviously, the issue [...]

Intraday Market Update

Stocks rallied in the last hour of trading after struggling through most of the day on disappointing economic data and fears that China will tighten policy. Citigroup led a bank rally today as CEO Vikram Pandit said the bank should be consistently profitable, going forward. The Dow Jones Industrial Average gained 44.51 points, or 0.42%, [...]

Will China Tighten?

Chinese economic data released last night, has investors speculating that a rate hike may come as early as tomorrow. A strong economic performance and a stronger than expected inflation number increased the odds. A decision to hike by China would dampen the risk trade and benefit the U.S. Dollar. The Aussie and other commodity currencies [...]

Currencies calmly accept rampant Chinese growth

There’s a nice mix of arguments this morning to give rise to conflicting views on today’s currency movements. A slew of healthy data out of China confirmed up to be a rambunctious pup desperate to play in the yard. Moreover the strength of the data raises the stakes in terms of monetary tightening, which helped [...]

Intraday Market Update

The U.S. session is experiencing a roller coaster ride, with the majors breaking out higher at the open to then reverse most gains as stocks retreated. Currently, the majors are recouping some of the lost ground as equities are once again edging into positive territory. The Aussie had the strongest reversal as sellers were already [...]

Chinese export data pressures yen

A year after the weakest close for global equity prices, risk appetite has very much returned to the agenda. Stock prices are 60% or so higher from the bottoms reached in March 2009. Of course at the time no one knew it was the bottom and subsequently investors have climbed that so-called “wall of worry.” [...]

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