Forex News

European session FX preopen

Wed, 20th Jun 2012 08:00

This is a FOREX market update at the european session preopen.

Main headlines:

G-20 Pushes Europe

for Crisis Endgame.-Bloomberg

Three Parties Near Greek Coalition Deal.-WSJ

EU to Renegotiate Bailout Terms With Greece: Official.-CNBC

Recovery risks may stir Federal Reserve to action.-Reuters

Hedge funds bet on big Bunds sell-off.-FT

Fed Work's Done, No Need for Easing: Former Fed Governor.-CNBC

America's wrap up:

Barney Frank Takes On Jamie Dimon.-CNBC

Dollar weakens on Fed easing hopes.-FT

Brazil's Real Strengthens on Speculation Fed Planning More Monetary Easing.-Bloomberg

Paulson: Harm to U.S. From Europe is Minimal.-Bloomberg

U.S. Job Openings Fall by Most in Almost 4 Years.-Bloomberg

Dennis Gartman: Major Shift in Gold Trade.-CNBC

Asia's wrap up:

Further Chinese Interest Rate Cuts Seen as Last Resort.-CNBC

Yen Strengthens Vs Dollar, Euro Amid Demand From Japan Exporters.-WSJ

Asia Stocks Advance, U.S. Dollar Weakens.-Bloomberg

Nomura hit by Japan insider trading crackdown.-Reuters

European preview:

Europe Surpasses U.S. in Science Research.-Bloomberg

RBS's Hester Says Solution to Europe Sovereign Debt Crisis May Take Years.-Bloomberg

Euro Falls Before Spain Bond Auction; N.Z. Dollar Drops on Current Account.-Bloomberg

Euro slips, losses limited before Fed decision.-Reuters

FOREX action

EUR: The main euro crosses are moving sideways after recent volatile trading. The G20 is pushing Eurozone leaders to deal diligently with the debt crisis that is engulfing Spain. Greece is moving closer to the formation of a stable government. The EUR-USD has moved closer but is tsill below 1.2700 and the EUR-JPY is holding above the 100 level.

GBP: Sterling crosses show an upside bias. BOE minutes due to be released today will give us a taste of MPC members' willingness for more asset purchases. The cable could test yesterday's highs at 1.57575 while the GBP-JPY is trading above 124. The EUR-GBP is moving sideways, pivoting in the 0.8060 area.

CHF: Reduced risk aversion is loosening the grip on the Swiss franc. Safe-haven demand had been pushing it up recently. The EUR-CHF is close to the 1.20 threshold that the SNB is determined to defend while the USD-CHF is now moving below 0.9500.

Nordics: The NOK crosses show are registering some price action on the day that the Norges Bank is expected to leave its interest rates on hold at 1.50%. Both the NOK and the SEK advance against the USD but move sideways versus the EUR.

USD: Today all attention will be focused on the Federal Reserve. Weaker economic indicators and European debt crisis contagion fears could result in a more accommodative monetary policy stance. We will pay close attention to the upcoming FOMC statement and Ben Bernanke's words. The USD-JPY is moving sideways below 79.00.

CAD, AUD & NZD: The three dollar crosses are exhibiting strength against the greenback and the yen. AUD-USD is rallying above parity and is moving close to 1.02. Both should pare some gains soon. Meanwhile the USD-CAD has been able to break the 1.02 support area and there is a bullish head and shoulders formation that could lead a rally towards the parity area.

Next Article: Dollar falls more than one yen from day's high

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