Forex Market Commentary
US bonds rising in prices with lower yields.
The USD comes under further selling pressure across the board as gold confidently soars past the 1200 mark and crude oil settles in the low 30's. The lower interest rate expectations assisted the outlook on Wall Street as US equities fared well but across to Asia confidence in China is still at a low with Asian equities unable to rise in spite of a good showing in the Euro equities markets as a large target for Asian exports. Across the globe there is a sluggish feeling as the exuberance for the Dollar fades and central banks struggle to find wiggle room to encourage a quick boost to economies. Both Europe and Japan have demonstrated that negative interest rates and quantitative easing do not necessarily provide the impetus for economic growth as it did in the US economic model. That is a lesson the PBOC would be well advised to heed as there is no one model fits all solution. The PBOC sees no reason for the Yuan to decline any further as China seeks to stabilize after months of blood-letting in the troubled Chinese equities markets. In the bond markets falling yields in both the US and Euro markets is seeing the spreads between US Treasuries and Bunds tightening from 1.636 basis points to 1.589. This tightening on the Euro side is translating into a lid holding back the EUR/ USD from pushing through the 1.12 mark.
Interesting articles this week -
http://www.bloomberg.com/news/articles/2016-02-12/deutsche-bank-to-buy-back-5-4-billion-bonds-in-euros-dollars
and
http://www.reuters.com/article/us-kuwait-oil-idUSKCN0VM0AK
Important data:
FX:
EUR/ USD 1.125700 -0.005095 -0.45%
USD/CHF 0.97708 +0.00373 +0.38%
USD/JPY 116.8375 113.2260 +0.8260 +0.73%
CNY/ USD 0.15204 -0.0009 -0.01%
GBP/USD 1.450255 1.450450 +0.003730 +0.26%
AUD/ USD (commodity currency) 0.71100 +0.00040 +0.06%
USD/CAD (commodity currency) 1.38500 -0.00785 -0.57%
NZD/USD (commodity currency) 0.662455 -0.006895 -1.04%
Fixed Income Markets:
US Federal Reserve - +0.50%
US 30 Day Fed Fund 99.625 0.000 0.00%
US 2 year T-Notes 109.453125 -0.179688 -0.16%
US 10 year T-Notes 131.046875 -0.984375 -0.75%
ECB Base rate 0.050 %
Chinese interest rate PBC China 4.35 %
Japanese interest rate (BoJ) 0.10 %
Equities Markets:
Nikkei 14,952.61 - 760.78 -4.84%
SSE Composite Index 2,763.49 -17.53 -0.63%
Hang Seng 18,319.58 -226.22 -1.22%
DAX 8,967.51 + 214.64 +2.45%
FTSE 100 5,707.60 + 170.63 +3.08%
DJIA 15,973.84 +313.66 + 2.00%
Commodities Futures Cash:
Crude Oil WTI 31.33 +2.50 +8.32%
Gold 1173.460 1238.200 -0.570 -0.05%
Indicies:
USDX 95.981 +0.378 +0.49%
VIX 26.85 - 1.27 - 4.53%
Pieter Bergli - DeLoren Trust Holdings
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All trades, patterns, charts, systems, etc., discussed in this blog http://forexeducationperspective.blogspot.com/ are for educative and illustrative purposes only and not to be construed as specific advisory recommendations for actual trades. Disclaimer - http://forexeducationperspective.blogspot.com/ bears no responsibility for the trading actions of its readers.
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A non-profit commitment to provide education on the properties of currency markets. Forex market commentaries and media reports for free
Disclaimer - U.S. Government Required Disclaimer - Commodity Futures Trading Commission
Futures and Options trading involves risks of losses. No representation is being made that any reader and account will or is likely to achieve profits or losses similar to those that are being discussed on this blog http://forexeducationperspective.blogspot.com/. The past performance of any trading system or methodology discussed is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this blog http://forexeducationperspective.blogspot.com/ are for educative and illustrative purposes only and not to be construed as specific advisory recommendations for actual trades. Disclaimer - http://forexeducationperspective.blogspot.com/ bears no responsibility for the trading actions of its readers.
* European Union laws require European Union visitors to this blog to know that cookies are used by Blogger and Google, including use of Google Analytics and AdSense cookies and in reading material from this blog do consent to the use of such cookies
