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US Dollar Mixed as Euro Holds on to Gains

US dollar is mixed today as gains against the pound and the yen are offset to some degree by the way the euro is managing to eke out gains in spite of the turmoil over Greece. However, even with this small setback against the euro, the US dollar is still likely to remain strong overall, since safe haven currencies are likely to be in demand for some time.

For now, the US dollar is turning in a mixed performance today. Against the UK pound, greenback is higher as the Bank of England lowers its growth forecast for the year to +0.8%, revised down from +1.2%. The news has some speculating that more asset buying could ensue in an effort to stimulate the British economy, and that is weakening the pound. Against the yen, the greenback is a

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EUR: 1.30 Can’t Hold For Much Longer

For the past 7 trading days, the euro either held steady or weakened against the U.S. Read more text…

NZ Dollar Rises with Asian Stocks

The New Zealand dollar advanced today, rising against the US dollar and erasing its previous losses versus the Japanese yen, as Asian stocks gained ahead of the meeting of European finance ministers.

Yesterday, market sentiment was negative, bringing most risky currencies down. The pessimism remained at the beginning of todays trading session, but, gradually, traders stance was shifting toward optimism ahead of the meeting of European finance chiefs. The MSCI Asia Pacific Index of shares rose 0.1 percent, reflecting the improving mood of investors.

NZD/USD rose from 0.8174 to 0.8217 as of 11:10 GMT today. NZD/JPY was flat at 6

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FX: Mixed US Data and Underwhelming EZ Firewall

Month end rebalancing flows has helped the euro trade higher against the U.S. dollar despite an underwhelming increase to the Eurozone’s firewall. Earlier this week, it was widely believed that Eurozone Finance Ministers would increase total lending capacity to EUR940 billion but unfortunately the final statement from the Eurogroup meeting showed a commitment of only EUR700 billion. EUR500 billion in fresh lending would be added to EUR200 billion in existing commitments. The fact that this number is at the bottom of the EU’s range means that European nations are still trying to minimize their commitments which will be negative for the euro. EUR500 billion in new funds is not enough to bailout Italy and Spain. Over the next 3 years, Italy has more than EUR500 billion in sovereign needs while Spain has more than EUR300 billion. The immediate question however is whether this new commitment will be enough to convince the IMF to commit more resources to a European bailout. The next IMF/World Bank meeting is scheduled for April 20-22. Given Read more text…

EURUSD teetering – must make up its mind soon

EURUSD drops into pivot zone – time to crumble or reverse. Meanwhile, US weekly claims rather weak if we takle last week’s revisions into account. Beware the multiple calendar witchings tomorrow with end-of-month/quarter/Japanese financial year.

EURUSD teetered into the pivot zone below 1.3300 in today’s trade, but as of this writing had not decided whether it was time to crumble back into the lower range. Remember that tomorrow is the last day of the month and last day of the quarter and we have had a rip-roaring quarter for equities, which could mean strong fixing flows on asset rotation, and for FX, that could mean risk-negative flows if equities sell-off further from here. The EURUSD downside today was aggravated by widening peripheral Euro Zone bond spreads and a cratering Spanish stock market of late and in anticipation of the Spanish budget presentation tomorrow. A neg

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Euro Rises as Greek Parliament Approves Bailout

The euro advanced today, reaching the highest price in more than four months against the Japanese yen, after Greece won parliamentary approval for another bailout and on anticipation of positive macroeconomic data.

Acting Parliament Speaker Grigoris Niotis said that 213 Greek Parliament members voted for the bailout and 79 were against it. Now, the indebted country may receive the €130 billion rescue package. Economists predict that tomorrows report from Markit Economics will show an increase of German purchasing managers indexes for both manufacturing and service sectors.

EUR/USD rose from 1.3227 to 1.3265 as of 9:37 GMT and the daily maximum was 1.3285 the highest rate since March 8. EUR/JPY was up from 110.

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FX: Volatility Soars, Safe Haven Bid Returns

The safe haven bid has returned with the U.S. dollar trading higher against most of the major currencies.   The only G20 currency that performed better than the U.S. dollar was the Japanese Yen, which has long been a favorite in times of uncertainty.   U.S. stocks fell more than 1.50 percent today with the Dow Jones Industrial Average losing 200 points.   This was the worst performing day for stocks so far this year and unfortunately this sell-off was coupled with a sharp rise in volatility and this spelled big trouble for risky assets. Read more text…