Morning Coffee Break – Friday March 22 As we get ready to start the final session of the week traders will be without a doubt will be focused on the developments in Cyprus. Or should I say lack of development as Cyprus leaders’ hopes for a Russia bailout loan has fallen part and are going into the weekend with no deal and the European Central Bank deadline set for Monday
The USD/JPY appears to have run into a slight headwind in the short term on the daily chart, at the 96.60 area, with the pair having tested this price level on three occasions over the last 10 days, before pulling back.
Traders start out the week with the U.S. dollar broadly lower against the major currency pairs. The moves comes on the hope the U.S. policymakers can reach a deal before the fiscal cliff deadline which in turn pushed sentiment toward risk appetite assets and away from the safety of the U.S. dollar.
A portion of this post was published also in the public section Traders start out the week with the U.S. dollar broadly lower against the major currency pairs. The moves comes on the hope the U.S. policymakers can reach a deal before the fiscal cliff deadline which in turn pushed sentiment toward risk appetite assets and away from the safety of the U.S. dollar.
The U.S. Dollar is trading higher against the Japanese Yen during the mid-morning U.S. session going into the weekend.
We had a subscriber ask about any suggestions where to look for possible currency ETFs action. Interest rates at record rates not only in the U.S. but globally as well. Add into the mix huge amount of monetary easing like QE3 from U.S. Federal Reserve and central banks around the globe like Japan, Australia and England just to mention a few has seem have broken the system.
Welcome to Thursday’s Morning Coffee Break – market participants will need to navigate several market directional influences today. The S&P 500 index has gains for 3 straight sessions with today’s futures suggesting a positive open once again.
Markets are off to a positive start in the early week, with two key developments over the weekend seen as the primary drivers for the initial surge in risk correlated assets. The news that EU assistance to the Spanish banking sector in the amount of Eur100B has well exceeded estimates of most analysts, while Chinese data was not as bad as many had feared. Both of these developments have resulted in a market rally driven by the expectation that the global economy will continue to be supported by proponomics.
– RBA shocks markets and cuts by 50bps to 3.75% – Decision surprising given RBA track record – Aussie sold aggressively across the board in response – UK manufacturing PMIs disappoint; weighs on Pound
Futures Ahead of the Open S&P fair value: +0.20 NASDAQ fair value: +1.00 Europe volume will be limited with May Day holiday, however, the UK’s FTSE will be open for trading. Currently up 0.39%. UK Manufacturing PMI fell to 50.5 on a downwardly revised 51.9 for the prior month.
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