http://www.forexlive.com Tomorrow’s conventional wisdom today! Tue, 09 Feb 2010 00:02:04 +0000 http://backend.userland.com/rss092 en The late fall on Wall Street is adversely affecting Asian bourses, the Nikkei is 0.75% lower on the open and the Kospi is 0.15% lower. http://www.forexlive.com/83429/all/nikkei-opens-0-75-lower There was a report on Reuters that Trichet was set to leave the RBA seminar early in order to partake in an ECB council meeting. I don't know at this point whether this meeting was already planned or whether it is more of an 'emergency' measure. We'll keep an eye ... http://www.forexlive.com/83426/all/rumours-circulating-about-emergency-ecb-meeting Australia's leading investment bank is benefitting from the improved growth in the second half of last year, according to this Bloomberg report. http://www.forexlive.com/83424/all/macquarie-group-suggests-profits-likely-to-rise It's been a quiet start to the Sydney morning and traders are awaiting the opening of the Nikkei and the Kospi to see if they follow the lead from Wall Street, which sold off very late. The GBP and the AUD might be influenced by the RICS house price survey ... http://www.forexlive.com/83421/all/waiting-for-regional-bourses-for-some-momentum-changers The majors slipped a little lower late in the NY session but it was an altogether quiet session and we are pretty close to the same levels as yesterday. I expect to see further consolidation during Asia with the EUR/USD inside 1.3585/1.3715, EUR/JPY likely to remain choppy inside 120/124.50 and ... http://www.forexlive.com/83416/all/asian-fx-market-open-further-consolidation-likely Spanish deputy ecomin Campos: Not concerned about Greek contagion, a short-term factor; funding costs falling despite wider spreads Fed's Bullard: Fed should sell assets before raising rates; sales could come later in 2010 Fed's Yellen: China stuck with US monetary policy until it ends currency peg US equities slide late in session; S&P ... http://www.forexlive.com/83407/all/forexlive-us-wrap-up-eurusd-rebounds-capped With a bit over 30 minutes left to trade, US equities have turned lower and now trade down about 0.5%. EUR/USD has traded with a heavy tone for much of the afternoon with leveraged accounts selling once we slipped back below the 1.3700 level. We trade now at 1.3665, consolidating ... http://www.forexlive.com/83403/all/share-prices-sinking-late-in-the-session Let's, just for the sake of argument, play a game of what if... What if the EU came up with a watered-down rescue of Greece. One rumor making the rounds earlier today was that the EU or the Eurogroup would guarantee the short-term debts of Greece, perhaps buying them a years ... http://www.forexlive.com/83393/all/so-what-if-there-were-an-eu-rescue-of-greece US monetary policy is likely excessively stimulatory for Hong Kong and China and Hong Kong and China are concerned that US monetary policy could fuel asset bubbles.  China is stuck with US monetary policy because of its USD peg, Yellen said. Adjustments to China's exchange rate policy are all but ... http://www.forexlive.com/83387/all/feds-yellen-china-stuck-with-us-monetary-policy Traders blame a Swiss banking giant for leading the latest round of EUR/USD seales, pushing it back down to the 1.3680 level. 1.3715 continues to strengthen as resistance after contaiing several rallies throughout the Monday session. http://www.forexlive.com/83383/all/swiss-bank-leads-latest-round-of-sales BOC deputy governor Duguay repeats that the BOC will hold rates steady at least until the end of Q2. A strong CAD and lo US demand remain substantial drags on the economy, Duguay said. http://www.forexlive.com/83378/central-banks/bank-of-canada-sticks-with-familiar-story Traders report having to buy several hundred EUR/USD in the last little while and they have come without difficulty. EUR/USD trades with an easier tone, now at 1.3690 after rallying as high as 1.3712 as Europe squared up for the day. 1.3622/1.37147 is the range all day and it looks like ... http://www.forexlive.com/83375/all/decent-offers-emerge-in-eurusd Spanish deputy econmin Camapa says Spains funding costs are falling despite widening yield spreads because interest rates have fallen so far. He's got a point. 2-year German notes are at the same yield as overnight depos, 1%. He says he believes that S&P will view Spain's fiscal austerity plan positively. http://www.forexlive.com/83367/all/spains-cost-of-funding-dropping-despite-wider-spreads Those expecting a package to save Greece over the weekend were disappointed, but the fact that were were unable to push lower has to be taken as a sign that the market has gotten a bit one sided. EUR/USD sellers are seen at 1.3715 and again at 1.3740/50 but stops are ... http://www.forexlive.com/83362/all/todays-action-a-little-counter-intuitive European shares have turned higher with about 30 minutes to go in the session and the currency has followed suit. Commodities are firmer as well with the CRB index up about 1% on the day. EUR/USD trades in the low 1.3690s. 1.3715 is resistance on further strength. http://www.forexlive.com/83358/all/european-shares-turn-north-eur-follows St. Louis Fed chief Bullard says the Fed should sell assets before it hikes rates and that he would begin asset sales in the second half of this year. He would want to see the Fed's balance sheet back to normal size before the business cycle turns again. Bullard is bullish ... http://www.forexlive.com/83355/all/feds-bullard-asset-sales-before-rate-hikes-and-asset-sales-later-this-year Spanish deputy economy minister Campa says that Spain is not concerned about contagion from Greece and that it is a short-term thing. He may be be right. Or he may be disastrously wrong. We'll know in the next week or two, I would imagine. EUR/USD quietly range-trades in a 1.3650/80 range. http://www.forexlive.com/83352/all/spain-not-concerned-about-greek-contagion Spreads over German benchmarks are rising again in late European trade with Portuguese bonds now at their widest spread over bunds of 167 bp since the crisis began. Same for Spain, now at 102 bp. Greece is below last week's spike above 400 bp, but is still very wide at ... http://www.forexlive.com/83348/all/spreads-widening-versus-pigs-again Now the good news: The US Federal government is closed today. Snowmageddon should keep the mischief in Washington to a minimum, at least for today. A distinct plus for mankind... http://www.forexlive.com/83345/all/first-the-bad-news-the-fedral-government-is-closed-today US equities have come under pressure in early trade, down about a half-percent in the early going. EUR/USD  dipped back into the 1.3650s from the 1.3670s and now trades at 1.3663. http://www.forexlive.com/83341/all/us-equties-open-much-weaker-than-futures-implied