Currencies: CZK extends losses as CNB keeps its dovish stance
Fixed Income: Czech swap rates continue to diverge from the euro curve

The Czech koruna slightly weakened to 24.45 EUR/CZK and continues to stay in a defensive mode as expected.

The dovish stance of the CNB board was yesterday re-affirmed by Lubomir Lizal. So, we continue to bet on short term weakness of the Czech koruna. The interest rate differential has never been such a strong factor for EUR/CZK (in compare with EUR/USD), but at current from a fundamental point of view high levels, the negative development of the differential could continue to weigh on the Czech currency.

Read more…

With all of the talk about the risk in the Euro zone from the debt crisis, the Euro is showing remarkable resiliency. This morning’s better than expected GDP figures confirm growth in the region, and next week’s meeting of EMU Finance Ministers could produce a long-awaited solution for the debt crisis that would assuage market fears.

Yesterday’s wild market ride that started the US session in risk-aversion mode completely reversed itself and actually finished higher with risk appetite trumping aversion. This morning, a continuation of that risk appetite is present to start the day, though it is unclear if that will remain heading into the weekend and after we get the US CPI data.

The inflation data due out later this morning should show higher than expected readings, though the data was compiled prior to the commodity price sell-off. But c

Read more…

May 7, 2011 (Allthingsforex.com) – The week ahead will bring the main gauges of inflationary pressures from some of the world’s largest economies, but traders will pay an even closer attention to the latest news from Greece, as anxiety levels have risen on recent reports that the debt-ridden country may be considering an exit from the Euro-zone and the euro.

In preparation for the new trading week, here is the outlook for the Top 10 spotlight economic events that will move the markets around the globe. 

1.    CHF- Swiss CPI- Consumer Price Index, the main measure of inflation preferred by the Swiss National Bank, Tues., May 10, 3:15 am, ET. 

Inflation in Switzerland is expected to register a smaller increase by 0.5% m/m in April, compared with the unexpected spike by 0.6% m/m in March from 0.2% m/m in February. With the Read more…

This morning the markets are starting out clearly in risk aversion mode as there is a sense of fear of retaliation from Al Qaeda due to the killing of their leader Osama Bin Laden. However, it looks as though everything is lower, including the price of oil and gold which given the risk in the market may not make sense.

For if the “risk” in the marketplace is due to a potential retaliatory strike, wouldn’t that increase the price of oil, and not the other way around? Something to think about.

Overnight, the RBA in Australia left interest rates unchanged at 4.75% but issued mildly hawkish comments with regard to inflation, though the market has discounted this and is more concerned with the risk we are seeing.

Both the Euro and Pound are lower, but the Pound is particularly weak as PMI data came in at 7-month lows. While

Read more…

Yesterday’s FOMC meeting and ensuing press conference was essentially more of the same, though the new theater surrounding the announcement seemed to do more to distract from the policy statement than anything.

As expected, the Fed left rates unchanged and committed to leaving rates low for an “extended” period. So the markets took this as a cue that weak-Dollar policy was here to stay for a while and sold the Dollar mercilessly, sending it to 3-year lows. This also helped push stocks, commodities, and anti-Dollar currencies higher.

This was the obvious driver of markets yesterday, and many other news events got lost in the shuffle. One such event was the RBNZ rate policy meeting in New Zealand. While

Read more…

Danny Kleinman does not fit the stereotype for a hacker. Hes clean, social, and even has a girlfriend. Yet, according to The Herald, the electronics in his living room are all hacked.

Aiming his smartphone at a lamp, he controls the light with the volume controls. Up, on. Down, off. He tells his TV Discovery Channel, and theres the Discovery Channel. He even programmed the lights in his bedroom to wake him up.

Isnt this cool? he says, clearly giddy.

Read more…

Trade was slim today due to many banks were closed for Easter break. But some analysts said that the USD downtrend looked set to resume once traders return from the holidays. USD hovered near a 3-year low versus most major currencies today with some analysts looking for it to test an all-time low when players return from the Easter holidays. Dollar index slipped to 3-year low of 73.735 yesterday, having slipped below its 2009 trough of 74.170. It last stood at 74.061 today, about 4.7% above its record low of 70.698 marked in March 2008.

EUR today fell to 1.4549 against the USD after reaching a 16 month high of 1.4647 yesterday. ECB’s Governor, Jean-Claude Trichet, commended on the rate increase. H

Read more…