31st
05 -
2010
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2 comments »
In June month there will be considered a two important developments in which the market should keep a bull’s eye,firstly the development seen in the stocks. In last week there was a break out seen in the DOW even though it touches the low of Feb. in some past days.
The buying of stocks leads to the rise again at the end of week. Where as the rise in CRB stocks are also shown and leads it to the level above 258. After the argument on the recoveries held on last Friday, sell-off and seems to be looked corrective as anticipated by the market experts.
There are major events are scheduled by Canada and Australia as they may discuss about the crucial factors that is whether commodity currencies will be steady for long term or not. The market is still expecting a hike from the BOC even though it seems to be in volatile state as the Forex market.
In this week the market main focuses on rate hike of BOC since, the market were pricing only 4y percent at only one point while 25 bps rate hike in terms of BOC as expected for this week in the market.
But it is seen that OECD has taken an strict action against the BOC and ordered them to remove all the policies that leads the investors to increment their betting as the stocks gets rebounded in past week.
At the end of the week it is noticed that market gets only a seventy percent rate hike since we all know that BOC rate hike is not a done deal in the market. It is seen that there was a recovery seen in the past week in the Canadian Dollar against the major currencies and commodities of the market.
On Tuesday there will be some recovery in the US and UK market is expected in the Forex market. So, it is true that there will be some instability occurs in June hike because of the past month’s consequences.
26th
05 -
2010
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3 comments »
Over the weekend the Bank of Spain intervened along with four other Spanish banks bailed out Cajasur to consolidate with the fifth largest group of the nation. These banks composedly submitted a proposal to Central bank of Spain to merge their business with them.
This news leads the EURO currency in low phase after going to a high of 1.25 in the past week. IMF had given a report on Spain yesterday for telling about the weak points. The report clarifies about the debt condition of Spain along with the productivity growth, huge private sector and weak competitiveness.
Forex market risk aversion is eventually trying to collect the momentum in bulk yesterday with the threat of Spain banking concerns along with the embedded impact of financial crisis problem of euro zone member countries. Investors are much worried after the fall of Korean currency drops against Dollar.
This impacts the Asian stock market to drop-down after the USD/KRW reaches below 1200 points for the first time after 2008 low. In today’s Forex market fall is shown in Japanese Nikkie that falls to 3.06 points and Asia Pacific Index reaches to 3 percent low.
Crude oil breaches to 69 level where as an upgrade is seen in the USD index of 86.8 point. Instead of this Japanese Yen seems to be strongest currency than Dollar even though currency pair USD/JPY falls below the 90 level.
It was anticipated in the market that if the sentiments remains worse for the coming days for the EURO currency then it can be a benefit for the USD and Yen as they reach to a high level against all the major currencies of the Forex market.
Overall it is said by observing the current situation of the market that the main focus of the Forex market is captured totally by the Spain banking concerns. Lets see what will be the next step that can be taken in the market for controlling the worsen situation of EURO currency.
