The Morning Briefing is prepared daily at the start of the European Trading session by RTFX’s trading desk. It presents a roundup of the major news headlines occurring within the global economy that may affect the forex market. This news bulletin also includes a view of our forex calendar for the day, highs and lows achieved in the previous sessions from the forex market, global indices and commodities and brief commentary about the economic headlines.
Morning Briefing for Wednesday, 09 May 2012 (Updated 09:36:15 CET)Greece retains focus, Aussie continues to weaken
Asia: Asian and US equities remain in negative territory
Greece: Still unable to form a coalition government
Spain: Government expected to unveil banks’ plans on Friday
Forex: AUD/USD approaching parity, fresh 2012 lows
Forex: JPY still attracting support as carry trades unwind
Rates in Asia and Indices:
Low High Change
EUR/USD 1.2965 1.3008 -0.15 %
USD/CHF 0.9234 0.9263 -0.15 %
GBP/USD 1.6129 1.6163 -0.13 %
USD/JPY 79.72 79.94 0.10 %
EUR/CHF 1.2010 1.2013 0.00 %
EUR/JPY 103.4 103.94 0.27 %
Dow Jones 12810.39 13000.73 -0.58 %
Nasdaq 2587.53 2638.3 -0.35 %
S&P 500 1347.75 1369.16 -0.42 %
Nikkei 225 9021.2 9115.94 -1.48 %
Shanghai 2407.509 2432.472 -1.57 %
Gold spot 1587.23 1606.73 -0.67 %
Oil Future 96.35 97.39 -0.30 %
While losses remained contained, US equities still did not manage to shrug off earlier losses. Asian equities could not do any better either, as investors remained in risk-off mode; major indices in Asia remained in negative territory.
Meanwhile Greek parties were still unable to form a coalition government and the fact that it is the Syriza leader who is currently attempting to form a coalition government does not help investor concerns either. The Syrizas are very much seen as anti-bailout; the leader of the party has set a rejection for international bailouts as a pre-condition for a new coalition government.
Reuters announced that the Spanish Government is expected to unveil plans to help the Spanish banks on Friday.
The Aussie attracted the largest losses this morning, the AUD/USD keeps making fresh 2012 lows, closer to parity, as it slips to lows 1.0052 so far today. The Aussie remained pressured after comments by the treasurer left implied that balanced budget would leave more room for the RBA to cut interest rates.
Amongst the majors the Japanese Yen continues to attract support this morning and is so far the largest gainer. Most of the gains for the Yen come from against the commodity bloc currencies as carry unwind continues despite risks seemed to have consolidated.
USD/JPY has traded in the range of 79.71-79.94 and was so far unable to reclaim 80 levels. The pair’s decline should remain contained around 79.52 to possibly correct towards 80.24 – unless 79.33 is breeched.
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