Forex Daily Review: Spain Regional Elections and GBP/AUD

22 Oct 2012• Matti Williamson, FX and commodities analyst      Spain Regional Elections in Galicia and the Basque

Elections in Galicia (Spain) showed great support for the ruling People’s Party (PP), which supported the gains in Euro-dollar through the Asian session. In the Basque however, PP failed in garnering votes. The Basque Nationalist Party (PNV) and the EH Bildu dominated the votes, increasing the risk for a referendum on independence. Focus will be on 28 October where regional elections are expected to take place in Catalonia, Spain. In some way Spanish PM, Rajoy may be reluctant to ask the EU for a bailout that will be intertwined with new austerity measures, a move that will make his party less favourite in the eyes of the Kingdom of Spain.

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Forex Daily Review: EUR/USD $1 Billion Option Strike

spontaneous’ spike holds a great secret within its Japanese candlestick. $1.0 billion dollar option strike was placed a 1.3050 for yesterday’s New York (NY) cut at 14:00 GMT. The holder of the the option was said to be a large US investment house that was blamed for the tight range in Euro-dollar until the NY cut. EUR/USD spiked

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Forex Daily Review: Another Day, Another Bear

24 Oct 2012• Matti Williamson, FX and commodities analyst      Australian CPI and China Manufacturing Data

Yesterday’s session was enriched with the fine touch of the bear. Moody’s downgrades and reports that Spain’s gap between spending and taxes could be as high as 7.3% of GDP. Weak US earnings assisted the bears’ pressure on EUR/USD, shoving the pair from 1.3074 to 1.2951. Strong CPI data from Australia and a slight improvement from China’s manufacturing sector helped AUD/USD to regain its lost territory on the intrday charts but for some odd reason I am not favouring further gains in the Australian dollar. The CPI came well-above expectations, which in a way chips the probability of an additional rate cut by the RBA in November, but do note below 50.0 reading in the manufacturing PMI means that the sector is continuing to contract but a slower pace. That should leave AUD vulnerable to the European crisis, in this case Greece.

Greece Fiscal Measures Disagreements

Greek leaders continue to disagree on structural reforms, delaying the talks with the Troika. There appears to be disagreements amongst the Greek coalition leaders on the

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Forex Daily Review: EUR/JPY Bearish Gift

25 Oct 2012• Matti Williamson, FX and commodities analyst     

EUR/USD bulls' won the battle of 1.3000, soaking the heavy offers as the pair currently trades at 1.3005. The Japanese yen was heavily sold into Europe on reports that the BOJ will expand its asset purchase facility by

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Forex Daily Review: Will Fitch Take Action and Downgrade the US?

EUR/JPY bearish gift could have been great for Christmas. The pair reversed its hard-gained in accordance to my technical analysis as risk-aversion dominates once again the financial markets. US earnings report failed to trigger a buying-spree in the US indices, resulting in hefty losses to SP500. Once of the main catalysts for the strong weakness are market speculations that Fitch credit rating agency were to downgrade the US sovereign rating, which their spokesman declined to comment.

S&P Downgrades

Risk-aversion is likely to dominate the market once again in today's session as S&P rating agency downgraded BNP Paribas to A

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Forex Daily Review: Hurricane Sandy and EUR/USD

29 Oct 2012• Matti Williamson, FX and commodities analyst      The Euronext's New York Stock Exchange

Forex traders woke up to the news that hurricane Sandy forced the closure of the US stock market for Monday and possibly Tuesday according to recent reports. The hurricane could harm the employees' safety and the major exchanges. The NYSE Euronext's New York Stock Exchange and the Nasdaq announced that the US stock market will be closed for today's session although there is still the option of activating al lelectronic trading for the US markets. Wall street is expected to open but with limited manpower.

Hurricane Sandy Effects on FX Markets

Hurricane Sandy effects may concern investors as extensive damage will not assist the local economies to battle with the current global crisis.

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Forex Daily Review: BOJ Disappoints but Greece is the Big Bear

30 Oct 2012• Matti Williamson, FX and commodities analyst      BOJ Expands Easing Measures

The most-expected announcement from the BOJ disappointed the forex traders as the central bank expanded its asset purchasing program from

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