Dollar

The two main macro releases of the day will be UK PMI services at 9:30am (London), and the US employment report, Non-Farm Payrolls (NFP). The recent economic releases from the UK have shown signs of potential growth, and a better than expected services PMI this morning, is likely to put a bid into sterling in the FX markets. It is the first Friday of the month, which means that it is ‘Non-Farm Friday.’ The US employment report will be released at 13:30pm (London)and as alwa…

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The headlines were captured yesterday by the UK Prime Ministers David Cameron’s “Britain and Europe” speech. In well prepared dialogue, Cameron put forward a defining moment for the United Kingdom, how the country moves forward with the Eurozone. He explained that he will attempt to renegotiate powers from Brussels and will then hold an in/out referendum for the UK in Europe to appease the Tory Eurosceptics. Prior to his speech at Bloomberg HQ in London, sterling was weaken…

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The Yen is headed for its biggest 2-day gain since November The spending cuts and tax hikes scheduled to hit the UK in 2013 are milder than most other advanced economies, according to a Goldman Sachs research note out yesterday Hedge funds that use computers to follow trends lost money for a second straight year in 2012 as political debates over the U.S. fiscal cliff and Europe’s sovereign-debt crisis roiled markets – Bloomberg The U.K. economy will have a &ldqu…

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Happy New Year from all at Abshire-Smith, may 2013 be prosperous for you. Today is the first trading session of the New Year, please check your client emails for market trading times, or contact us if you are unsure. Many traders will have been away from their desks over the holiday period, with the majority back this morning. The US house of Representatives has passed the fiscal cliff bill, which has been discussed at length over the last 6 months. The Congressional Budget Offic…

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UBS facing new Hong Kong rate fiddling probe - CityAM S&P cut Cyprus credit rating to CCC+ Trafigura, the commodities trader earns $1bn twice in a row - Financial Times BP and Rosneft plan TNK integration – The Daily Telegraph Tesco has lost its appeal against the OFT for collusion - The Times UK GfK Dec consumer confidence slides to -29 (f/c -25) vs -22 November Chinese ships enter Japanese waters near disputed islands – CNN For the…

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Christmas is under a week away, and the New Year isn’t far. Until the 2nd of January, with many traders likely to close or cover positions over the holiday period and be away from their desks, liquidity from Monday the 24th December until the 2nd of January should be relatively thin. Some analysts have been putting the dollar weakness down to fund managers squaring positions ahead of month end and year end. Cable is trading at the highest price since mid-September, and EURUSD tra…

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This morning is the first European trading session of the week, following Friday’s better the expected jobs report and data from China over the weekend pointing to a faster than expected economic recovery.The global economy has become particularly reliant on Chinese products and high-end demand from the growing Chinese middle class. Fears of a so-called hard landing for the Chinese economy following sustained double digit growth have been a concern for economists and investors around t…

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US Exchanges are expected to reopen as normal today at 9:30am (ET), following the closure for two days due to hurricane Sandy. The storm has caused considerable destruction and devastation across the North Eastern coast of the US. It is estimated that there has been over 40 deaths and the cost is expected to exceed $10bn. Transportation across the region has come to a standstill as trains and busses were halted and flights grounded to avoid the storm. Sectors to watch are the insurance, indu…

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Overnight the Reserve Bank of Australia (RBA) release its minutes from the October 2nd meeting, when the central bank cut rates by from 3.50% to 3.25%. The dovish tone of the minutes noted of the expected weaker growth next year and the decline in appetite for business spending. The strength of the Aussie was also highlighted as it remains high by historical standards. AUDUSD dropped following the release around 20 pips, but the minutes had no further detail or surprises the cross retraced t…

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Chinese official PMI improved to 49.8 in Sep from 49.2 in Aug Fitch Ratings on Friday maintained Britain’s “AAA” credit rating with a negative outlook, warning that weak economic growth and a rising debt level was increasing the likelihood of a downgrade The board of Xstrata has recommended a £52bn all-share merger with Glencore - Daily Telegraph Greece will receive the next aid tranche even though the troika report uncovers some failure and offer th…

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If you held bullish positions this week in commodities, equities and were short the dollar against pretty much any other currency, then this should have been a very successful week of trading. The dollar has been heavily sold against the majors, with respective multi-month highs and lows. The week has had 3 major events the German constitutional court announcing that the formation of the ESM wasn’t unconstitutional, the Dutch elections and Ben Bernanke turning on the taps of the antici…

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The key event of the week in the financial markets has arrived as traders eagerly await the speech from Federal Reserve Chairman Ben Bernanke at Jackson Hole, Wyoming. Speculation as to what the context of the speech will include, however the focus is due to whether there will be another round of quantitative easing (QE3). Many analysts and market commentators had voiced that this is all but a done deal, however it opinion seems to be split as to whether it will be announced. The Presi…

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It’s the end of the week and a possitive one for the equity markets in Europe and the US. On Thursday stocks rallied for a third consecutive day with the Stoxx Europe 600 reaching its highest level since July 2010. The FTSE 100 closed down 0.2%. In the US data from the jobs market and manufacturing added to optimism that the worlds largest economy is starting to gain some momentum. This morning Goldman Sachs O’Neill said that“..the US housing market is bottoming out,&…

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The better than expected US retail sales combined with the outcome of the Fed’s stress tests led to a strong close in the US with equity markets closing at multi year highs. In Asia equities followed their American counterparts and rallied with the regional index the MSCI set for its highest close in two weeks. The latest round of stress test’s on US banks paves the way for dividends to enable the backs to return cash to shareholders. 15 out of 19 institutions passed the te…

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