| Jobs Disappoints, FX Whipsaws
October 2, 2009 at 9:25 am
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| | The dollar was initially higher following the September labor report, rallying to 1.4481 against the euro and 1.5806 versus the pound sterling before relinquishing its earlier gains by the New York afternoon. US equities also recovered from its losses in the morning session, clawing their way back into positive territory,... |
| USD Erases NFP Gains in Volatile Trade, ECRI at Record High
October 2, 2009 at 8:10 am
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| | The USD traded mixed ahead of today's release of US unemployment with the USD supported by safe haven flows as global equity markets continued to decline, JPY supported by a statement from Japan's finance minister that JPY strength will not be distressed at this weekend's G-7 meeting in Istanbul, and... |
| Labor Market Conditions Continue to Deteriorate in the United States, as the Recovery Seems to be St
October 2, 2009 at 8:05 am
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| | The U.S. labor market remains on the receiving end of this crisis, as the worst recession since WWII continues to weigh down on companies' profits and accordingly they continue to layoff workers, as it seems rising unemployment will be the main reason behind the slow recovery in economic activity in... |
| U.S. Market Update
October 2, 2009 at 6:26 am
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| | Currency action continues to strongly correlate with equity prices. Risk aversion sentiment roiled the equity markets as the September jobs report called the sustainability of the economic recovery into question. USD and JPY saw some strength following US payrolls and the sharp downward benchmark revisions. EUR/USD tested below 1.4500 following... |
| Forex Fundamental Outlook
October 2, 2009 at 6:25 am
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| | There are several factors at work in the market today. First, U.S. employment data were released and they were worse-than-expected. The common currency's kneejerk reaction was to decline more than 55 pips on the number but dealers then lifted the pair to an intraday high. It was reported that September... |
| Late European Session Snapshot
October 2, 2009 at 6:23 am
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| | Non Farm Payrolls dropped heavily in Sep (-263K M/M vs. -175K expected, -216K previous), sending equity markets plunging lower and commodities down across the board. The effect on risky assets had certainly been anticipated, however more surprising was the resilience of the EUR in the face risk appetite gone sour.... |
| Dollar Gets a Pasting as Traders Realize the World Hasn't Ended
October 2, 2009 at 4:49 am
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| | Investors chose to be 'shocked' by Friday's larger-than-expected rise in American workers laid off from jobs. Some 263,000 more workers were fired throughout September raising the rate of national unemployment to 9.8%. A rather nervous equity market was poised to react further to the downside, but as nerves settle in... |
| U.S. Payroll Employment Weak; Unemployment Rate Moves Up to 9.8%
October 2, 2009 at 4:33 am
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| | The labour market report for September showed a disappointing 263,000 loss of jobs compared to market expectations of a 175,000 drop. As well, the report suggested a break from an earlier easing trend in the pace of jobs losses following drops of 201,000 (revised from -216,000) in August, 304,000 (-276,000)... |
| Afternoon Forex Overview
October 2, 2009 at 4:25 am
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| | The euro is retracing immediate losses against the dollar after falling to more than a three-week low early Friday on the release of a disappointing U.S. payrolls report. The common currency declined to USD1.4480. It has since turned higher on the day, although it is trading at lower levels than... |
| Risk Aversion Returns on Ugly US Payrolls - but FX Can't Decide Where to Go
October 2, 2009 at 3:49 am
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| | More support for the USD came with the risk aversion triggered by today's rather dour US employment report, which showed a worse than expected -263k jobs lost, and the unemployment rate rising to 9.8% as expected. Further evidence of a weak jobs market came with average hourly earnings rising only... |
| Jobless Recovery Suggests Consumer Strains
October 2, 2009 at 3:22 am
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| | Job losses of 263,000 in September, combined with weak earnings, suggest the consumer will underperform in this cycle. Rising unemployment and duration statistics suggest hard times. Over recent economic recoveries, job losses have lagged and this cycle is no different. Moreover, sector differences have become more pronounced as manufacturing and... |
| US Sheds 263k More Jobs in September
October 2, 2009 at 3:18 am
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| | The US unemployment rate rose to its highest level in 26 years at 9.8% with nonfarm payrolls job losses at -263k. The rise in the September unemployment was in line with expectations but the nonfarm payrolls decline was larger than expected with the trade looking for a decline of around... |
| Europe: PPI Moderates in September, Boosting Hopes for Recovery
October 2, 2009 at 2:25 am
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| | The Euro area showed progress after it stood against hardships and problems resulting from the deepest economic recession since the Great Depression. Signs of recovery starting from the second quarter, lead by Germany and France which grew unexpectedly 0.3% succeeded in mitigating the adverse effect of the recession, such as... |
| USD & JPY Higher, Fujii Says G7 Will Not Discuss JPY
October 2, 2009 at 2:24 am
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| | The USD and JPY trade higher as equities extend Thursdays slide, and Japan's finance minister says that the strength of the JPY will not be discussed at this weekend's G-7 meeting in Istanbul, the drop in global equities fuels risk aversion and safe haven demand for the USD, there is... |
| Strong Dollar Dream.....?
October 2, 2009 at 2:20 am
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| | Does the market take Mr. Geithner at his word? Mr. G is right about responsibilities and burdens of a world reserve currency, responsibilities that have been abused by several US administrations in a row. If Mr. G is right about his making the "world understand that we are going to... |
| UK: Construction Sector Contraction Narrows While House Prices Annually Climb
October 2, 2009 at 2:15 am
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| | As the manufacturing sector revealed a widened contraction yesterday, today the construction sector also shrinks at a higher rate than the prior reading and this meant that now two of the major sectors continue to suffer from the ongoing recession in the United Kingdom. The PMI construction for the month... |
| The Dollar And The Yen Both Surge As Investors Are Uncertain About The Economy
October 2, 2009 at 12:59 am
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| | The greenback and the yen rose on concern rising unemployment and loan defaults will slow the U.S. economic recovery, sending stocks lower and boosting demand for the currencies as a refuge. Europe's single currency was poised for a second week of declines against the dollar on speculation Group of Seven... |
| Directionless Markets Ahead Of NFP
October 2, 2009 at 12:38 am
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| | Overall, the market searched for a direction during the overnight session, but until now, only the aussie and the cad managed to move decisively, while the rest of the market moved up and down around the break-even line. Moreover, the major pairs are now trading in two groups, with the... |
| European Market Update
October 2, 2009 at 12:07 am
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| | In Currencies: Initial the softer tone equity markets weighed upon the energy sector and in turned kept the CAD and AUD pairs on the defensive. The USD was softer against the European pairs ahead of the US non-farm payroll data. The EUR/USD moved above the 1.4550 area aided by speculation... |
| London Session Recap
October 2, 2009 at 12:06 am
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| | A pairing back of risk appetite has characterized both Asian and European sessions. The recent bout of weaker than expected US economic data has strengthened concerns about the strength of the global recovery outside of the Asian region pulling equity markets lower and driving the JPY higher across the board.... |
| Non Farm Payrolls And G7 May Buoy The Dollar
October 1, 2009 at 11:19 pm
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| | Forecasts for today's NFP are being adjusted since this month's ADP report painted a bleak picture of the labour market. Although the headline consensus remains -175K, we believe that market expectations may have shifted to a more negative reading in light of a week of downside surprises from the US.... |
| Dollar Hardly Gains From Stock Market Correction
October 1, 2009 at 9:57 pm
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| | Yesterday, EUR/USD lost some ground in step with the correction on the stock market. However, the losses were fairly limited. The dollar even ceded ground against the yen. Today, there will be some market talk whether the G7 will address the issue of the currency markets, but as is the... |
| The Hong Kong Monitory Authority Strive To Keep The Currency Exchange Rate Fixed
October 1, 2009 at 9:26 pm
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| | The monitory authority in Hong Kong has been working on stabilizing its currency exchange rate by pumping billions in the markets and banks in order to maintain a stable relationship between their currency and the dollar that witnessed considerable variations lately, aiming to bring stability to their financial system. |
| Morning Forex Overview
October 1, 2009 at 9:17 pm
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| | The dollar and euro fell against the yen Friday as investors cut down on the riskier currencies for the safe-haven Japanese unit after a slew of bad U.S. economic data and poor stock moves overnight made them more bearish about the two currencies. |
| Uncertain Times Ahead As Markets Eye CIT Group
October 1, 2009 at 8:56 pm
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| | Eurozone Unemployment in Aug was 9.6%; exactly on consensus estimates and modestly higher than the month prior (9.5%). National PMI figures across Europe were slightly better than expected (Eurozone composite PMI 49.3 vs. 49.0 exp.) but the EUR failed to benefit from the news, as markets were instead focussed on... |
| Look Out For US Labor Market Data Today
October 1, 2009 at 8:50 pm
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| | Trendline support in S&P500 today is 1013. It looks like that level could be tested today. The HY universe saw the biggest one-day drop since March and treasuries are making new highs. Commodities are all lower, indicating more risk-aversion. Stand by for an ugly weekly close. |
| FX Daily Report
October 1, 2009 at 8:31 pm
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| | The U.S. dollar firmed on Thursday as weaker jobless and manufacturing data burnished the greenback's safe-haven appeal, and comments by a top European official about the euro's recent gains hurt the single currency. Worse-than-expected U.S. initial jobless claims and a manufacturing index for September that came in lower than forecast... |
| A Bad Start For Equities In Q4, But Is It Just A Reaction To Window-Dressing?
October 1, 2009 at 8:19 pm
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| | It was a bad start to Q4 on Wall St as weaker US jobless claims and manufacturing ISM data overcame positive inputs from personal spending and pending home sales. Weekly jobless claims were a worse than expected, 551k vs. 535k, and the ISM manufacturing a disappointing 52.6 vs. 54.0. On... |
| Asian Market Update
October 1, 2009 at 8:10 pm
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| | US Dollar strengthened across the board in early trading but retreated later in the day on reluctance by buyers to take the Euro down to 3-week lows ahead of the Non-farm payrolls data. 1.45 appears pivotal in EUR/USD, USD/CHF ranged between 1.04-1.0440, while GBP/USD briefly fell below 1.59. In commodity... |
| Today's Key Points
October 1, 2009 at 7:47 pm
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| | In the FX market all eyes are on the non-farms payroll report this afternoon. If we are right in our above consensus call it should lend support to EUR/USD. The G7 meeting in Istanbul is drawing close and more and more comments from policy makers are hitting the news wires.... |
| Asia Session Recap
October 1, 2009 at 7:43 pm
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| | The week in Asia ended on a relatively quiet note as the dollar remained elevated and markets consolidated ahead of tomorrows looming non-farm payroll data. Trading was subdued and range bound for the most part as traders spent the day squaring positions and taking profits ahead of the potentially volatile... |
| Daily Financial Market Outlook
October 1, 2009 at 6:03 pm
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| | Further signs that the global economic recovery may not be advancing quite as strongly as the market previously expected dominated sentiment yesterday, with equity markets falling sharply and bond markets and the US dollar both recipients of a flight to quality bid. In the US and UK, the latest manufacturing... | | | 
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