Market Outlook
U.S. Dollar Momentum Builds as Greek Concerns Linger
Despite the €130 billion bailout agreed upon yesterday for Greece, market participants are questioning the ability of the Greek government to fully implement the necessary measures. Earlier today, Fitch Ratings cut Greece’s long-term ratings to C from CCC, a sign that a default is indeed coming in the next few weeks.
Euro Setting Up For Major Decline, Sterling Poised For Correction
Renewed fears surrounding sovereign debt crisis dragged on risk-taking behavior and the flight to safety may gather pace during the North American trade as European policy makers struggle to restore investor confidence.
Greek Saga and Uncertianty Continue; Yen Emerges as Major Story
With all of the focus on the Eurozone in recent months, traders might be forgetting to look elsewhere where the Yen has begun to sell off aggressively…
Euro: Why is the Market So Reserved after Greece’s Bailout?
We finally have it: the Euro-area ministers have agreed to the additional austerity measures necessary from Greece to tap the second rescue program. Then why hasn’t the euro surged forward?
GBPUSD_Trading_the_Bank_of_England_Minutes
The Bank of England Minutes presents the biggest event risk for the British Pound and the policy statement may prop up the sterling should the central bank talk down speculation for additional monetary support.
Greece Gets Bailout but EURUSD Fails to Post Meaningful Gains
Euro-zone finance ministers agreed on a €130 bailout fund for Greece early on Tuesday, though given the reaction by the Euro and other risk-correlated assets, it appears market participants remain skeptical. After all is said and done, by no means is a Greek default off the table.
Euro Optimism Fizzles Amid Weakening Outlook, Sterling Capped
Market sentiment weakened on Tuesday even as the EU agreed to release the EUR 130B bailout package for Greece, and the mixed reaction to the debt deal suggests that more needs to be done as the fundamental outlook for the euro-area remains bleak.
Greek Bailout Deal Fails to Bring Fireworks – What Gives?
Currency markets saw a broadly lackluster response to the emergence of a final deal on the second Greek bailout. We expect renewed risk aversion will follow.
Euro Finds Additional Bids As Terms of Greek Deal Disclosed
Initial reactions to the Greek bailout agreement are positive, albeit marginally so, and we are keeping a close eye on EUR/USD 1.3325…
Dollar Activity Level Drops to Lowest Level Since Holiday Period
With a gap higher on the open of the week for risk appetite, the safe haven dollar would suffer its own drop to start trading Monday. That said, follow through was notably limited on both fronts.
Optimism on Greek Deal Stokes Risk-Appetite; Chinese Rate Cut Helps
The Euro and other risk-correlated assets surged in the Asian and European sessions as a Chinese rate cut coupled with increased optimism about the Greek deal boosted confidence coming out of the weekend. However, with U.S. markets closed for a federal holiday on Monday, volatility and volume are expected to be relatively lower until Tuesday.
Euro Holds Key Resistance Ahead Of EU Meeting, Sterling To Outperform
Hopes surrounding the EU meeting in Brussels propped up market sentiment on Monday, but the rise in risk-taking behavior may be short-lived should European policy makers make an attempt to buy more time.
Commodities Gain as China, Greece Bailout Hopes Boost Risk Appetite
Commodity prices aim higher on firming risk appetite before a Eurozone finance ministers meeting. Crude oil and copper are lead as China cuts interest rates.
FOREX: US Dollar Slumps on China Rate Cut, Greek Bailout Deal Hopes
The US Dollar slumped against most major currencies to start the week as China cut interest rates amid hopes that a Greek bailout deal will emerge today.
Greece Bailout Progress Inspires Fresh Wave of Risk On Trade
The headlines out of Greece over the weekend were quite positive and have helped to open a fresh surge in risk correlated assets…
Euro Optimism To Be Short-Lived, Sterling To Consolidate Further
Increased efforts to avoid a Greek default propped up market sentiment on Friday, and the rise in risk-taking behavior may carry into the following week as European policy makers are set to nail out the details of the second bailout package next week.
Compass Directions Morning Report – Friday, 17 February 2012
The markets continue to oscillate like a yoyo between mania and depression as news surrounding Greece dominates market sentiment. Yesterday, we saw the EUR plunge below 1.3000 before surging to above 1.3150 after Germany’s Die Welt newspaper reported that the European Central Bank will proceed to swap its EUR 50 billion in Greek government debt [...]
Crude Oil Aims Higher on Improving Demand Bets, Gold Eyes US CPI
Crude oil and copper prices may rise as an improving outlook for US economic growth stokes demand bets. Gold and silver set sights on inflation data.
FOREX: Dollar Sold on Strong US Data, Greek Bailout Deal Hopes
The US Dollar fell overnight as a strong US data set and hopes for agreement on a second Greek bailout drove risk appetite, sapping safe-haven demand.
Recent Price Action Discourages But Also Offers Clear Actionable Levels
The latest jolt in risk on price action has been intense and compromises our outlook. However, we find comfort and clarity on the sidelines…
