Not much change in FX space
City Index July 12, 2012 1:00 PM
<p>Our team of forex experts analyse the currency markets and offer their insights on which market-moving events are likely to impact the performance of some […]</p>
Our team of forex experts analyse the currency markets and offer their insights on which market-moving events are likely to impact the performance of some of the most popularly traded forex pairs in the UK, including GBP/USD, EUR/USD and USD/JPY.
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Not much change in FX space with ‘Risk’ still showing signs of weakness as concerns on global growth persist adding strength to the $. The FOMC minutes released last night suggested that no new fresh accommodation will be added unless the Fed sees further deterioration in economic data.
The ‘Risk’ trade remains focused on global growth concerns with the near term gauge coming tonight in the way of the Chinese GDP data with a consensus forecast of 7.7% below the 8% level we have become accustomed to.
The AUD fell sharply overnight taking out stops below the 1.0200 following weaker employment data. The June payroll data dropped by -27,000 versus a consensus of flat with revisions from May being revised down to +27,900 from +38,900. The unemployment rate jumped from 5.1% to 5.2%.
The BoJ increased the asset purchase of T-bill by JPY5 trillion but decrease the same amount of fixed-rate fund, so net the total amount of asset purchase program was unchanged at JPY70 trillion.
The risk off theme continues to grind lower with option protection noted at the 1.2200 level in EUR/USD with stops noted below.
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