DAILY REPORT: Tuesday 29th January 2013

The big moves yesterday were seen in USD Asia, the initial catalyst was generally seen as selling of local shares by foreigners in Korea and there was a sizeable short  squeeze across the board. Also providing impetus for the move has been the continued weakening of the JPY, as the currency wars heat up. G10 was generally subdued in our time zone, then lost ground into the London morning. AUD traded to a low of 1.0385 and looks to have now broken a key upward trend which started mid last year. In the US, data was mixed with solid Dec durable goods orders report but this was coupled with very

Read more: DAILY REPORT: Tuesday 29th January 2013

DAILY REPORT: Thursday 24th January 2013

So the attention reverted back to the US overnight as the house voted to suspend the US debt ceiling until May, averting a potential crisis and has now given the house more time to thrash out a budget. The bill still needs to go to the senate although it is expected to pass. The bill has included a clause to keep senators from collecting their salaries if they don’t pass a budget by April 15. So a carrot of sorts has been dangled to congress and a deal should be struck before the deadline. The outcome was somewhat as

Read more: DAILY REPORT: Thursday 24th January 2013

DAILY REPORT: Wednesday 2th January 2013

Happy New Year everyone! And in the financial world what a start it has been with the fiscal cliff, the main focal point. The US senate passed a budget deal in the early hours however, the deal is far from complete and agreed upon and seems that in part things are being kicked down the road a bit. The bill that was passed in the Senate would make permanent the tax cuts for most households that ended at midnight, continue expanded unemployment benefits and delay automatic spending cuts for two months. The latest headlines however state that Eric Cantor (the House majority leader) has announced his opposition to the fiscal deal. The house Republicans are meeting again at 5pm NY time (9am Sydney time) and if they amend the bill by adding additional spending cuts it will have to go back to the Senate. So a lot more back and forth could be on the cards. So what has it all meant in the markets? The barometer of risk in Asia, the good ol' AUD has traded down from its opening levels around 1.0400 to a low so far of 1.0378, EUR has been choppy although since around 6am AEST has traded sideways around the 1.3190-1.3200 level. As more headlines hit the screens expect to see some more choppy price action in light liquidity.

Read more: DAILY REPORT: Wednesday 2th January 2013

DAILY REPORT: Monday 28th January 2013

Major Equity Indices on both sides of the pond finished in positive territory on Friday evening with a relatively strong IFO release from Germany, while marginally weaker than expected data in the UK and US seemed to have been overlooked by investors, with the S&P500 closing above the illusive 1500 for the first time in five years. In bond markets, rates were up in most markets on the LTRO repayment data (with the exception of some euro peripherals). ECB data released on Friday night revealed that banks have been

Read more: DAILY REPORT: Monday 28th January 2013

DAILY REPORT: Wednesday 23th January 2013

After the BoJ yesterday, USDJPY eventually found a base around the 88.70-75 level overnight, dipping to a low of 88.37 with continued headlines from Abe and other officials hitting the screens into the wee hours. There was good support seen around the 88.30-40 level and if we see another push lower at any point, the next round of support lies at 87.80-88.15. EUR initially moved lower into the London morning on rumors that German banks were being asked to separate out their Investment Bank divisions from their retail operations and also a profit warning from a number of German banks. However, with positive German ZEW data, the EUR was able to retrace although European equity markets had earlier taken a hit and were unable to finish in positive territory. In other European headlines, there was positive chatter that Spain’s 10 year syndicated offering now exceeds €24bn of interest and will be launched in the near future. Elsewhere, reports emerged that the EU are to consider how to back an Irish and Portuguese return to the markets, with Rehn stating that the Commission supports extension of maturities of loans to both nations. In the US data wasn’t great, existing home sales were weaker and the Fed manufacturing index was down. Despite this, US equity markets overcame the data and have closed in positive territory. Over the last 24

Read more: DAILY REPORT: Wednesday 23th January 2013

QE3 Discussion "Will Push Gold Prices Higher", Eurozone Problems "Have Not Disappeared" - 28 August

Gold Prices traded just above $1660 per ounce Tuesday morning in London, a few Dollars down on last week's close, while stocks and commodities were also broadly flat on the day and US Treasuries gained.

Silver Prices rallied to nearly $31 per ounce, having fallen back through that level a day earlier, before easing back towards lunchtime.

Read more: QE3 Discussion "Will Push Gold Prices Higher", Eurozone Problems "Have Not Disappeared" - 28 August

DAILY REPORT: Friday 25th January 2013

The market digested the afterhours Apple results and equities were initially hit in the US before closing relatively flat. This in part was due to firmer data out of the US, US Man PMI for Jan was up 56.1 (consensus 53.0) and US initial jobless claims were also better (+330k, expected +355k, previous +335k). Elsewhere there was a lot of chatter that Japanese real money have been buying EFSF bonds for the first time in years, in a sign of confidence returning to the markets. However, with a shocking French PMI

Read more: DAILY REPORT: Friday 25th January 2013

DAILY REPORT: Tuesday 15th January 2013

Mixed session for equities overnight as the earnings season continues, while moves were relatively contained for the currency and commodity markets. USDJPY traded to its highest level since 2010, reaching 89.67, as speculation continues on Abe’s appointment of a new central bank chief who will expand monetary easing. Apple shares slumped on concerns over Iphone sales whilst Dell rallied. Commodities were marginally higher with softs leading the move up, while treasuries rose for a second day. Across the pond German bonds were up as were Spanish 10 year bonds. A lot of chatter about the US debt ceiling with Obama calling once again for the ceiling to be raised in a speech made yesterday.

Read more: DAILY REPORT: Tuesday 15th January 2013

Gold bull run to extend to 2012 on resilient demand - analysts

By Fayen Wong

SHANGHAI (Reuters) - The spectacular bull run in gold prices is unlikely to end soon, with bullion retaining its appeal in 2012 due to the uncertain global economy, analysts and industry officials said on Friday.

Gold's growing allure for buyers ranging from central banks to retails investors will provide a cushion for prices, even if the euro zone ended its debt crisis and the global economy embarked on a recovery, they said.

Read more: Gold bull run to extend to 2012 on resilient demand - analysts

Gold Weighed by Debt Ceiling Punt and Low Jobless Claims Last Week

Gold is under moderate pressure after losing momentum ahead of the $1700 level. The yellow metal is being weighed on by Congress's latest punt on the debt ceiling, which for some has diminished the appeal of gold as a safe haven. Additionally, today's better than expected US initial claims print has increased speculation that the Fed will be able to remove accommodations sooner rather than later.

Read more: Gold Weighed by Debt Ceiling Punt and Low Jobless Claims Last Week

DAILY REPORT: Tuesday 8th January 2013

A squeeze overnight in risk appetite for currencies on no real fundamental catalyst. EUR traded firmer bouncing off the 1.30 level and now back above the 1.31 level. AUD was equally well supported trading once again with a 1.05 handle and is where we find it this morning, having bounced nicely off the 100 hourly moving average although remaining within the recent range. This all came despite a weaker performance seen in the equity markets ahead of Q4 earning results (Dow -0.38%, S&P -0.31%) which are expected to start this week. Fast money were noted sellers of EUR back above 1.31 and have kept the currency relatively contained on squeezes however there is a slew of data out of Europe this evening which will be important to note; Retail Sales, Unemployment figures and economic confidence data are all due to hit the screens.

Read more: DAILY REPORT: Tuesday 8th January 2013

Stronger Dollar Drags Down Gold Prices

NEW YORK (TheStreet ) -- Gold prices fell modestly Monday, dragged down by a stronger U.S. dollar as investors piled into the currency as a safe haven.
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