2011 July

Markets Flat As Investors Wait For News On The Debt Ceiling | July 29, 2011

July 29, 2011 By Rupert Kain

USDCHF trades at record lows

The Australian equity market is pointed to a slightly weaker open today after the Dow finished 62 points lower 12240.11, the blue-chip measure’s fifth straight loss. The S&P500 index shed 4.22 points to close at 1300.67 as lawmakers indicated they were no closer to reaching an agreement to the increase of the debt ceiling and avoiding default.

The stalling of the U.S. debt-ceiling debates has convinced many investors that the government is on track to lose its triple-A credit rating. Attention on the subject intensified late Thursday as House Republican leaders aimed for an evening vote on their latest proposal to cut spending and increase the borrowing limit. The action follows weeks of squabbling between the White House and Congress.

The AUDUSD traded down from highs of 1.1076 overnight to as low as 1.0977, traders seem to be sitting on the fence awaiting for the House of Representatives vote later on Friday.

The USDCHF (see above chart) dropped to a record for the fourth straight day trading down as low as 0.7990 as the US house of representatives headed towards a showdown. At time of writing this report the USDCHF has bounced slightly to sit at 0.8014.

WTI crude had a unexciting evening finishing the US session at 97.44 after US jobless claims dropped to the lowest level in almost four months, this signals that the fuel consumption may increase as the weakness in the jobs markets lightens.

Source Bloomberg, Dow Jones News

INDICES
	Last Traded
SPI 200 future	4427
S&P500 Index	1300.67
Dow Jones Indus. Avg	12240.11
FTSE 100 Index	5873.21

COMMODITIES
	Last Traded
Gold	1615.65
Oil (Nymex)	97.13

CURRENCIES
	Last Traded
AUDUSD	1.0999
EURUSD	1.4325
GBPUSD	1.6360
USDJPY	77.77

Filed Under: July Tagged With: AAA, AUDUSD, Australian equity market, borrowing limit, Congress, Credit Rating, crude oil, currency trading, Daily fx report, Daily fx summary, debt ceiling, default, Dow, Dow Jones Indus. Avg, EURUSD, Foreign Exchange, forex, forex market wrap, FTSE100 Index, fuel consumption, fx market wrap, GBPUSD, Gold, Greece, greenback, House of Representatives, inflation, jobless claims, Light Crude Oil, market wrap, Nymex, Oil, Republicans, S&P500 Index, spending cuts, SPI 200, Swiss Franc, US Dollar, USDCHF, USDJPY, vantage fx, White House, WTI crude

Equity Markets Weak Overnight On Continued Debt Ceiling Standoff | July 28, 2011

July 28, 2011 By Vantage FX

The EURUSD traded down from a high of 1.4537 to a low of 1.4339

The Australian equity market is expected to drop about 1.4% on market open Thursday after the third straight weak overnight lead from the US as investors fear the country’s debt-ceiling standoff between the Republicans and Democratic could force a default or downgrade of US Treasury debt. The Dow dropped 164 points to finish the session at 12337 while the S&P500 index fell 23 points to close 1308.

The EURUSD (see above chart) traded down from a high of 1.4537 to a low of 1.4339 after Germany’s Finance Minister Wolfgang Schaeuble said his country opposes a blank check for the euro area rescue fund to purchase bonds on the secondary market.

After posting a new record of 1.1080 the AUDUSD has drifted lower to settle at 1.1029 in morning on continued debt concerns.

The NZDUSD has been range trading in early morning Asian trade after the NZ central bank kept its benchmark interest rate at a record low for the third straight meeting.

Gold fell from record highs of 1631 overnight to settle down 0.5% at 1617 after investors take profit.

WTI crude fell overnight from highs of 99.50 as an unexpected inventory increase and a decline in durable goods orders further concern that the economic growth is slowing. At time of writing this report crude was trading at 97.03.

INDICES
	Last Traded
SPI 200 future	4448
S&P500 Index	1304.89
Dow Jones Indus. Avg	12302.55
FTSE 100 Index	5856.58

COMMODITIES
	Last Traded
Gold	1613.65
Oil (Nymex)	96.83

CURRENCIES
	Last Traded
AUDUSD	1.1030
EURUSD	1.4372
GBPUSD	1.6324
USDJPY	77.94

Source Bloomberg, Dow Jones News

Filed Under: July Tagged With: asian trade, AUDUSD, Australian equity market, bond purchasing, crude oil, currency trading, debt ceiling, democrats, Dow, Dow Jones Indus. Avg, downgrade, durable goods orders, Euro, EURUSD, Foreign Exchange, forex, forex market wrap, FTSE 100 Index, GBPUSD, Germany's Finance Minister, Gold, market wrap, Nymex, NZ Central Bank, NZDUSD, Oil, Republicans, S&P500 Index, secondary market, SPI 200, The Dow, US, US Treasury debt, USDJPY, vantage fx, Wolfgang Schaeuble, WTI, WTI crude

USD Weak As Congress In Stalemate Over Debt Ceiling, Downgrade Looming | July 27, 2011

July 27, 2011 By Vantage FX

The USDJPY reached its lowest level versus the Japanese currency since March 17 trading as low as 77.83

The Australian equity market is pointed to a weaker open Wednesday after US stocks finished lower on mixed bag of earnings reports failed to stem investor caution over the deadlock in Washington’s debt negotiations.

The Dow closed down 91.50 points to settle at 12501.30, its third straight decline and fourth loss in five sessions, this means that the Dow has dropped 1.75% this week. The S&P500 index fell 5.49 points to 1331.94, as industrial and material stocks declined. “Short-term traders are taking bets one way or another ahead of a debt-ceiling announcement,” said Ryan Larson, head of U.S. equity trading at RBC Global Asset Management. “When a deal isn’t announced, people are taking positions off the table at the end of the day. This light-volume, choppy environment will continue until we get some kind of announcement.”

The USDJPY (see above chart) reached its lowest level versus the Japanese currency since March 17 trading as low as 77.83, at time of writing this report it was sitting at 77.95.

The AUDUSD continues to advance to its post float highs of 1.1011 set on the 3rd of May trading up from yesterday lows of 1.0822. Traders will be concentrating on the Australian CPI out at 11h30.

Gold rose for the third straight session to settle at 1619.30 per ounce as the prolonged US debt stalemate boost demand for the precious metal as a haven.

INDICES
	Last Traded
SPI 200	4526
S&P500 Index	1331.94
Dow Jones Indus. Avg	12438
FTSE 100 Index	5929

COMMODITIES
	Last Traded
Gold	1619
Oil (Nymex)	99.12

CURRENCIES
	Last Traded
AUDUSD	1.0955
EURUSD	1.4506
GBPUSD	1.6420
USDJPY	77.94

Source Bloomberg, Dow Jones News

Filed Under: July Tagged With: AUDUSD, Australian CPI, Australian equity market, currency trading, debt ceiling, debt negotiations, Dow, Dow Jones Indus. Avg, EURUSD, Foreign Exchange, forex, forex market wrap, FTSE 100 Index, GBPUSD, Gold, Head of US Equity Trading, industrial stocks, market wrap, material stocks, Nymex, Oil, precious metal, RBC Global Asset Management, Ryan Larson, S&P500 Index, SPI 200, US Debt, US equity trading, US stocks, USDJPY, vantage fx, Washington

Markets Weak As Investors Uncertain If US Can Hold Onto AAA Rating | July 26, 2011

July 26, 2011 By Vantage FX

The USDCHF traded as low at 0.8022 overnight which is now a record as investors demand the safest assets

The Australian equity market is pointed to a higher open today after the US markets recovered from the initial drop pre trade Monday. Overnight the US stocks ended the session down after the deadlock in Washington’s debt negotiations curbed investors’ risk appetite and left them uncertain whether the U.S. can hold on to its triple-A credit rating.

The Dow lost 88.36 points to close at 12592.80, this is its third drop in four sessions. The blue-chip index fell by as much as 145 points early in the session, after the collapse of the debt-ceiling talks triggered a flight to safer assets such as gold, which settled at a record $1,612 an ounce. Stocks recovered some ground as Republicans and Democrats each pledged separate efforts to raise the debt ceiling. The S&P500 index shed 7.59 points to close at 1337.43.

The USDCHF traded as low at 0.8022 overnight which is now a record as investors demand the safest assets while dropping the USD and EUR on the back of lawmakers failing to agree on raising the nations $14.3 trillion debt and Greece’s credit rating cut. At time of writing this report it was sitting at 0.8054.

The NZDUSD dropped to a low of 0.8613 in early Asian trade after a government report showed exports shrank more than economists had estimated.

Gold traded as high as 1624 per ounce as investors demand the metal as a haven investment. Gold is now up 13 percent this year and heading for the 11th straight annual gain.

INDICES
	Last Traded
SPI 200	4535
S&P500 Index	1337.43
Dow Jones Indus. Avg	12592.80
FTSE 100 Index	5925.26

COMMODITIES
	Last Traded
Gold	1613.95
Oil (Nymex)	99.14

CURRENCIES
	Last Traded
AUDUSD	1.0849
EURUSD	1.4372
GBPUSD	1.6280
USDJPY	78.30

Source Bloomberg, Dow Jones News

Filed Under: July Tagged With: AAA, Asian session, AUDUSD, Australian equity market, blue chip, Credit Rating, currency trading, debt ceiling, debt negotiations, democrats, Dow, Dow Jones Indus. Avg, EUR, EURUSD, Foreign Exchange, forex, forex market wrap, FTSE 100 Index, GBPUSD, Gold, Greece, Greek debt, market wrap, Nymex, NZDUSD, Oil, Republicans, risk appetite, S&P500 Index, SPI 200, US market, US stocks, USD, USDCHF, USDJPY, vantage fx, Washington

US Futures Drop 1% On Credit Ratings Fears | July 25, 2011

July 25, 2011 By Vantage FX

S&P500 edged up 1.22 points to close at 1345.02.

The Australian equity market is pointed to a lower open for the start of the week as the US failed to raise the federal debt limit which has intensified concerns of a default. House speaker John Boehner told the Republicans that there is no agreement on a plan for raising the ceiling before a default threatened for August 2 although discussions are continuing. Analysts are stating that there is now a 50 percent chance that the S&P will cut the US credit rating from AAA within three months.

On Friday the Dow fell 43.25 points to finish the session at 12681 while the S&P500 edged up 1.22 points to close at 1345.02.

Initial euphoria over Europe’s solution to Greece’s debt crisis wore off Friday, sending the Euro lower against major currencies as markets questioned whether the fundamental outlook for troubled euro-zone countries had really changed. The EURUSD traded down from overnight highs of 1.4437 to lows of 1.4325, at time of writing this report it was sitting at 1.4371.

The AUDUSD is currently sitting on its session lows of 1.0820 after trading as high as 1.0865 in early morning trade.

Gold surged to record highs on the back of the ongoing issues in the US , trading up from Friday night lows of 1583 to tip as high as 1624.

INDICES
	Last Traded
SPI 200	4589
S&P500 Index	1345
Dow Jones Indus. Avg	12518
FTSE 100 Index	5935

COMMODITIES
	Last Traded
Gold	1617
Oil (Nymex)	99.23

CURRENCIES
	Last Traded
AUDUSD	1.0821
EURUSD	1.4373
GBPUSD	1.6298
USDJPY	78.40

Source Bloomberg, Dow Jones News

Filed Under: July Tagged With: AAA, AUDUSD, Australian equity market, currency trading, debt ceiling, default, Dow, Dow Jones Indus. Avg, Euro, euro zone, Europe, EURUSD, Foreign Exchange, forex, forex market wrap, FTSE 100 Index, GBPUSD, Gold, Greece, Greek debt crisis, House Speaker, John Boehner, market wrap, Nymex, Oil, Republicans, S&P, S&P500 Index, SPI 200, US credit rating, US debt limit, USDJPY, vantage fx

Markets Surge Overnight On Efforts To Contain Europe’s Sovereign Debt Crisis | July 22, 2011

July 22, 2011 By Vantage FX

The EURUSD rose from overnight lows of 1.4139 to trade as high as 1.4440

The Australian equity market has opened sharply higher this morning after the US stocks surged closer to multiyear highs overnight, as hopes for a major budget deal in Washington and efforts to contain Europe’s sovereign-debt crisis excite investors’ risk appetite.

The Dow Jones finished 152.50 points higher at 12724.41, the highest close since May 10. It was the measure’s second triple-digit gain in three sessions while the S&P500-stock index gained 17.96 points to close at 1343.80.

Investors applauded steps toward a fresh Greek financing package, and they warmed to afternoon reports that a U.S. budget bargain was near. The White House and a spokesman for House Speaker John Boehner denied the reports.

The EURUSD rose from overnight lows of 1.4139 to trade as high as 1.4440 as plans for a new Greek bailout and overhaul of the euro zone’s rescue fund assuaged fears about possible contagion. The Euro also higher against safe havens such as the yen and Swiss franc.

The AUDUSD traded up from overnight lows of 1.0693 to trade through resistance of 1.0800 to finish the session at around 1.0838.

Gold fell for the third straight day as the Euro advances on a plan to contain the regions debt woes, cutting demand for the precious metal as a haven. Gold settled at 1587 earlier trading as high as 1604.

WTI oil rose to a one month high, at one time in the evening tipping the 100 USD per barrel after manufacturing in the Philadelphia area rebounded.

INDICES
	Last Traded
SPI 200	4579
S&P500 Index	1343
Dow Jones Indus. Avg	12724
FTSE 100 Index	5899

COMMODITIES
	Last Traded
Gold	1591
Oil (Nymex)	99.46

CURRENCIES
	Last Traded
AUDUSD	1.0838
EURUSD	1.4405
GBPUSD	1.6320
USDJPY	78.51

Source Bloomberg, Dow Jones News

Filed Under: July Tagged With: AUDUSD, Australian equity market, contagion, crude, crude oil, currency trading, Dow, Dow Jones, Dow Jones Indus. Avg, Euro, euro zone, Europe, EURUSD, Foreign Exchange, forex, forex market wrap, FTSE 100 Index, GBPUSD, Gold, Greece, Greek bailout, Greek financing package, John Boehner, market wrap, Nymex, Oil, Philadelphia, precious metal, risk appetite, S&P500 Index, sovereign debt crisis, SPI 200, Swiss Franc, The Dow, US stocks, USDJPY, vantage fx, Washington, White House, WTI, WTI oil, Yen

EURUSD Strong As The German And French Agree On Greece’s Debt | July 21, 2011

July 21, 2011 By Vantage FX

The EURUSD rose to a week high of 1.4270, trading up from an overnight low of 1.4206

The Australian equity opened slightly lower Thursday after the U.S. stocks closed small down. The Dow finished down 15 points to settle at 12571 after a chopping between negative and positive territory throughout the session while the S&P500 index dropped 0.90 of a point to close 1325.84 as investors show concern that the US government will fail to increase the debt limit overshadowed higher than estimated earnings at Apple Inc.

The EURUSD (see above chart) rose to a week high of 1.4270, trading up from an overnight low of 1.4206 after the German Chancellor Angela Merkel and the French President Nicolas Sarkozy reached a joint position on Greece’s debt situation before today’s summit.

The AUDUSD traded from an overnight low of 1.0722 to as high as 1.0775 early in the Asian session. It is thought the pair will trade sideways till there is more updates from Europe and the US on their debt problems.

WTI crude rose for the second day running trading up 0.7% after the Energy Department said stockpiles fell 3.73 million barrels to 351.7 million last week.

INDICES
	Last Traded
SPI 200	4535
S&P500 Index	1325.80
Dow Jones Indus. Avg	12571.90
FTSE 100 Index	5853.80

COMMODITIES
	Last Traded
Gold	98.50
Oil (Nymex)	1598.20

CURRENCIES
	Last Traded
AUDUSD	1.0761
EURUSD	1.4259
GBPUSD	1.6165
USDJPY	79.80

Source Bloomberg, Dow Jones News

Filed Under: July Tagged With: Angela Merkel, Apple Inc, Asian session, AUDUSD, Australian equity, crude oil, currency trading, debt limit, Dow, Dow Jones Indus. Avg, Energy Department, Europe, EURUSD, Foreign Exchange, forex, forex market wrap, French President, FTSE 100 Index, GBPUSD, German Chancellor, Gold, Greek debt, market wrap, Nicolas Sarkozy, Nymex, Oil, S&P500 Index, SPI 200, summit, US Government, US stocks, USA, USDJPY, vantage fx, WTI, WTI crude oil

Markets Strong: IBM Strong Earnings and Obama Endorses Deficit Reduction | July 20, 2011

July 20, 2011 By Vantage FX

The USDJPY advanced for the first time in three days trading from lows overnight of 78.82 to as high as 79.28

The Australian equity has opened the day strong after the Dow notched its biggest gain for this year, investors saw optimism on President Barack Obama’s praise for a $3.7 trillion deficit-reduction plan and the strong earnings of International Business Machines.

The Dow traded up 1.63% to finish at 12587 as twenty seven of the 30 components finished higher, led higher by IBM reported quarterly growth in all of its major businesses while the S&P500 index rallied 1.6% to finish 1326.73.

Both markets were significantly higher on the support for a deficit-reduction plan coming out of a bipartisan Senate group. President Barack Obama said overnight that the proposal, which would modify entitlement programs like Social Security and rework the tax code, represents a “very significant step” forward in deficit talks.

The USDJPY advanced for the first time in three days trading from lows overnight of 78.82 to as high as 79.28 as Barack Obama endorsed the deficit cutting proposal by a bipartisan group of senators.

The EURUSD had a choppy overnight session trading from a high of 1.4218 to a low of 1.4109 as the Greek Prime Minister George Papandreou said that Europe’s leader need to show that they can resolve the European Union debt crisis to avoid a contagion enveloping Italy and Spain.

Gold fall from the 31 year high trading from a high of 1610 to a low of 1582.

INDICES
	Last Traded
SPI 200	4488
S&P500 Index	1326
Dow Jones Indus. Avg	12587
FTSE 100 Index	5789

COMMODITIES
	Last Traded
Gold	1589
Oil (Nymex)	98.20

CURRENCIES
	Last Traded
AUDUSD	1.0742
EURUSD	1.4165
GBPUSD	1.6128
USDJPY	79.15

Source Bloomberg, Dow Jones News

Filed Under: July Tagged With: AUDUSD, Australia equity, bipartisan senate group, contagion, currency trading, debt crisis, deficit-reduction, Dow, Dow Jones Indus. Avg, Europe, European Union, EURUSD, Foreign Exchange, forex, forex market wrap, FTSE 100 Index, GBPUSD, George Papandreou, Gold, Greek Prime Minister, IBM, Italy, market wrap, Nymex, Oil, President Barak Obama, S&P500 Index, Social security, Spain, SPI 200, tax code, USDJPY, vantage fx

Markets Down On European Stress Test And US Debt Ceiling Concerns | July 19, 2011

July 19, 2011 By Vantage FX

The EURUSD had an interesting session overnight ahead of the Euro-zone summit later this week

The Australian equity market is set for a lower open today as firstly the European slid on growing concerns that the continent’s bank “stress tests” weren’t stringent enough as they failed to include such events as a Greek debt-default scenario that is seen as posing a systemic risk for large European lenders. US stocks fell to their lowest close in three weeks overnight as fresh concerns over European sovereign debt and the lack of progress in US debt-ceiling negotiations sparked a sell off of risky assets.

The Dow dropped 94 points lower to finish at 12385 while the S&P500 fell 10.50 points to finish the session at 1305.44.

The EURUSD (see above chart) had an interesting session overnight ahead of the Euro-zone summit later this week, it traded as low as 1.4014 but failed to break below the 1.4000 level before rebounding 120 points to finish the US session at 1.4122. At time of writing this report the EURUSD was trading at 1.4135.

Gold traded from a low of 1591 overnight to settle at a record price of 1607.90 per ounce capping the longest rally in 31 years as investors demand the metal as a safe haven. President Obama is currently meeting with congressional leaders about cutting their deficit.

INDICES
	Last Traded
SPI 200	4425
S&P500 Index	1305.44
Dow Jones Indus. Avg	12385
FTSE 100 Index	5752.8

COMMODITIES
	Last Traded
Gold	1603
Oil (Nymex)	95.98

CURRENCIES
	Last Traded
AUDUSD	1.0633
EURUSD	1.4135
GBPUSD	1.6075
USDJPY	79.05

Filed Under: July Tagged With: AUDUSD, Australian equity market, Barak Obama, currency trading, deficit, Dow, Dow Jones Indus. Avg, euro zone, euro zone summit, Europe, European Sovereign Debt, EURUSD, Foreign Exchange, forex, forex market wrap, FTSE 100 Index, GBPUSD, Gold, Greek debt-default, market wrap, metal, Nymex, Oil, President Obama, risk, S&P500 Index, safe haven, sell off, SPI 200, stress tests, US debt-ceiling, US stocks, USDJPY, vantage fx

Markets Choppy As Investors Buoyed By The European Banks Stress Test | July 18, 2011

July 18, 2011 By Vantage FX

EURCHF touched all time lows early on Monday morning in light trading.

The Australian equity market is pointed to a higher open Monday after the US stocks advanced on Friday evening on the back of massive earnings from Google overshadowed another warning about the US.’s credit rating and a disheartened reading on consumer sentiment. The S&P credit rating agency said there is a 50% chance it would lower the AAA bond rating on U.S. debt within three months.

The S&P index rose 7.2 points to finish the day at 1316.14 while the Dow rose 42.61 points to finish at 12479.73, both the indices are down over 1% for the week.

EURCHF (see above chart) touched all time lows early on Monday morning in light trading. It opened Monday morning on a high of 1.1578 to then trade a low of 1.1373. Investors seem to be choosing the CHF as a safe haven after a weekend interview with Merkel and Trichet seem to be making the Greek debt crisis more unclear and difficult to understand.

Only eight banks out of 90 top lenders in Europe failed the tests for a worst case economic scenario, between them there is a combined shortfall of 2.5 billion Euro’s of capital. Analysts had speculated that over 20 of the banks would fail the tests.

Crude oil futures prices capped a choppy week with a 1.6% rise to above $97 a barrel in U.S. trading Friday, on expectations that U.S. Federal Reserve board policy will continue to support the underlying strength in oil.

Gold finished the week off trading up 0.5% to settlement in U.S. trading Friday at 1593.7, while silver made steady gains, as bleaker U.S. consumer sentiment and government debt concerns in Europe and the U.S. roused investor demand for a safe haven.

INDICES
	Last Traded
SPI 200	4455
S&P500 Index	1316.10
Dow Jones Indus. Avg	12479.7
FTSE 100 Index	5843

COMMODITIES
	Last Traded
Gold	1597
Oil (Nymex)	97.55

CURRENCIES
	Last Traded
AUDUSD	1.0650
EURUSD	1.4124
GBPUSD	1.6115
USDJPY	79.07

Filed Under: July Tagged With: AAA bond rating, AUDUSD, Australian equity market, capital, CHF, consumer sentiment, crude oil, currency trading, Dow, Dow Jones Indus. Avg, EURCHF, Euro, EURUSD, Foreign Exchange, forex, forex market wrap, FTSE 100 Index, GBPUSD, Gold, Google, Greek debt crisis, iEurope, market wrap, Merkel, Nymex, Oil, S&P credit rating, S&P500 Index, silver, SPI 200, Trichet, US consumer sentiment, US credit rating, US Debt, US Federal Reserve, US stocks, US trading, USDJPY, vantage fx

Markets Flat As Investors Wait For News On The Debt Ceiling | July 29, 2011

Equity Markets Weak Overnight On Continued Debt Ceiling Standoff | July 28, 2011

USD Weak As Congress In Stalemate Over Debt Ceiling, Downgrade Looming | July 27, 2011

Markets Weak As Investors Uncertain If US Can Hold Onto AAA Rating | July 26, 2011

US Futures Drop 1% On Credit Ratings Fears | July 25, 2011

Markets Surge Overnight On Efforts To Contain Europe’s Sovereign Debt Crisis | July 22, 2011

EURUSD Strong As The German And French Agree On Greece’s Debt | July 21, 2011

Markets Down On European Stress Test And US Debt Ceiling Concerns | July 19, 2011

Markets Choppy As Investors Buoyed By The European Banks Stress Test | July 18, 2011

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