Saturday, January 14, 2012

Week in FX Europe Jan 8-13

Week in FX Europe Jan 8-13

The Spanish Bond and Italian Bill auctions were well received this week and gave the single currency hope for at least 24-hours. However, this morning’s final Italian issues of the week have provided the market an ideal opportunity and excuse to sell the currency again. Dealers have been talking about the limited upside of the single currency and that the risk reward favors shorting the EUR. Analysts have been revising their first quarter and year end projections down to an average of 1.22 and 1.15 respectively. So far in 2012 the EUR has weakened against all G10 and major EM currencies. This weakening has been a function of ECB easing and stronger global data, which have boosted risk sensitive currencies across the board. Now we must ask ourselves, can this downward trend outright and on the crosses continue? The ECB’s easing policy has provided a massive liquidity injection (LTRO), lowered the cost of shorting the currency and encouraged the funding of risk trades using the EUR.
DisclaimerThe analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities.IndonesiaAnalisa yang kami berikan adalah berdasarkan perkiraan pergerakan rata rata harga dalam satu hari. Tidak menjamin apa yang kami sampaikan adalah sesungguhnya menjadi tepat dan benar. Segala hal yang terjadi dalam anda melakukan keputusan terhadap transaksi trading yang anda lakukan adalah menjadi tanggung jawab anda.
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