fx

Good Morning:

The USD saw more weakness overnight, posting across the board losses.
The Aussie jumped to a new high as better than expected PPI data and business sentiment reading helped lead the charge.
The Euro rose over 1.4640-but stabilized after IFO data should a slight decline for the 2nd month in a row.
GBP climbed easily  over the 1.6550 handle as UK retail sales printed better than expected.

Good Morning:

Risk took center stage in overnight FX markets.  Euro was strong after a robust Spanish bond auction-and positive flows from Asia.
Aussie was the main attraction-as the AUD/USD pair rose to a new post float high of 1.0685.  The GBP took a back seat as dovish comments from the BOE showed that interest rates may not be rising any time soon.
The JPY lost some ground-as commodities and equity markets gained overnight.

Good Morning:

We start the week on a quiet note in the FX markets.  It was a fairly uneventful overnight session-with very little on the global calender-and nothing on North America’s calender today-the markets may be like a boat without a driver today-just  floating in the water.
The only notable event today is that Fed Vice Chairman Yellen will give a speech to the Economic Club of New York this afternoon.  Over the weekend Ms. Yellen made comments that it is to soon to lift the Fed’s “accommodating policy”.

Good Morning:

Good Morning:

Good Morning:

We have finally come to the end of the week-and what a week it has been-one for the history books!

The G-7 agreed to a joint intervention to curtail the rally in the JPY.  This is the first joint intervention in over a decade.  The nations agreed that “excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability”.  The pressure on the USD/JPY will still remain intense-but this move will at least have a somewhat calming effect on the markets.

Good Morning:

Good Morning:

We start this morning with news that Japan’s  nuclear reactor meltdown is still being sorted out-as smoke continues to billow out of the Fukushima nuclear plant.  Fears that the containment vessel in the #3 reactor has been breached seems to be the cause of the smoke and increased radiation levels.

Good Morning:

Good Morning:

Moody’s downgraded Spain from Aa2 to Aa1-with a negative outlook. 

• Cites concerns over sustainability of Spanish govt finances
• Sees background of only moderate Spanish growth short-medium term
• Spain still has high vulnerability to market disruption
• Total cost of bank restructuring likely around 40-50 blnAs expected the Bank of England left interest rates unchanged.

  World equity markets were and are lower-as are US Futures.