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MORE USDCAD DOWNSIDE (SEE CHART http://chart.ly/d3xo7bs ) as the loonie cheers the rise in risk appetite, especially when it is propped by improved US dynamics such as the US jobs report. CAD also gaining ahead of Wednesdays BoC interest rate decision, which is expected to produce 25-bp rate hike...

DUBIOUS BOUNCE IN SENTIMENT following strong Q2 GDP figures in Eurozone (1.7% q/q) and Germany (2.2%) has weighed on USD and JPY but both currencies are now off their lows as markets remain cautious ahead of US Jul retail sales and consumer sentiment. S&P500 yesterday closed below its 55-day MA...

UK Q2 GDP KNOCKS IT OUT OF THE PARK, rising 1.1% q/q vs. expected +0.5%, and +1/6% y/y vs. exp +1.1%. This is the first annual rise in 8 quarters. Services sector rose 0.9% q/q highest since Q1 2007. Although the FTSE-100 is up only 2 pts, there is sufficient risk appetite (from Asia) to boost...

UK GDP FIGURES: Due at 8:30 am GMT (9:30 BST) The preliminary figure of UK Q2 GDP expected +0.5% q/q from +0.3% in Q1, which is the 3rd straight quarterly positive GDP growth. On a y/y basis, Q2 GDP exp +1.1% from 0.2%, the 1st positive y/y figure in 8 quarters. Positive figures could further...

STERLING EXTENDS SELLING vs. USD and EUR as UK public sector borrowing hit a new record high in June reaching 21 bln, with net debt at 64% of GDP. UK July CBI Trends survey is due at 10 am GMT (11am BST) expected at -24 from -23. More data disappointment from the UK could see cable breach $1.5190,...

Yen strength is here to stay especially as the US dollar's safe-haven lustre is eroded by the worsening US data. ...

MARKETS SLUMP after Citi misses earnings and the July Univ of Michigan consumer sentiment survey plunged 9.5 pts to a 16-month low of 66.5. GBPJPY extends its plunge to 160 pips from yesterdays levels, eyeing 131.70. CAD is the WORST PERFORMER and JPY is the BEST PERFORMER as oil makes another...

EURUSD BREAKS above $1.29, regaining the 100-day MA for the first time since December mainly on a weakening US dollar and good news on the earnings front. Euros momentum shows the elements of an extenstion towards $1.3120. US equities made a late session rally on news that Goldman Sachs would...

Ashraf's VIDEO MARKET ANALYSIS is back http://bit.ly/dc27JF Why choosing GBPJPY and why is GBPCAD fading? US 10-yr yield have finally declined below 3.00%.......

US 10 YIELD YIELDS DROP BACK BELOW 3.00% for the 1st time since Jul 9th, dragging yen crosses across the board, in line with the deepening selloff in bourses. Selecting which currencies to short against the yen stands between CAD and AUD, but GBP maybe considered as a currency which has more...

RISING CAD, FALLING GBP are the main movers of the day. Unexpected decline in UK April manufacturing output drag down GBPUSD by more than a full cent to $1.4640s, while GBPJPY drops back to 134.20s. CADJPY breaks 50% retracement at 88.50, eyeing 89.70s in the event of protracted gains in risk...

THE POSITIVE ARGUMENT FOR THE BULLS TODAY is Asian equities shrugging of Wednesdays US selloff (Dow-30 and S&P500) on the heels of robust jobs figures from Australia, S. Korea & China. It is rare that Asian equities rally, whikle bucking the prior sessions selloff in the US. Such a pattern has...

STERLING IS DAYs HIGHEST PERFORMER today, followed by CLOSELY by NZD and CAD out of a group of 11 currencies. The Kiwi (NZD) and Aussie both rallied on a CHINESE DATA LEAK that China exports soared 50%, well above expectations of 32%. The report was scheduled to for release later in the week....

RECURRING INTERVENTION TALK ABOUT SNB as EURCHF jumps 70 pips from $1.3746 low, prompting EUR crosses higher across the board, including EURUSD at 1.1980s. EURCHF seen capped at 1.3910. Japanese Finance Ministry officials also jawboning as they issue the standard warning against excessive...

UNEXPECTED TRADE SURPLUS in Australia making the Aussie the days strongest currency, as April trade surplus hit A$ 134 million due to 11% increase in exports (+25% rise in metals/iron ore exports). AUDUSD breaks out of 0.8420 trendline, eyeing 0.8520. AUDJPY stands to extend gains towards 78.80,...

GBP or CAD? We noted yesterday CADJPY and GBPJPY were the likely aggressive gainers on a combination of Japanese political uncertainty, improved risk appetite and robust UK and CA data. GBPJPY breaks above May 10 trend line, now eyeing 135.90, while CADJPY could potentially extend gains towards...

MARKETS LOOKING TO STABILIZE as major indices succeed in holding above the May 6 lows. Dow-30 fell in 9 out of the last 10 days, while S&P500 fell in 8 out of the last 10 days. Todays US preliminary Q1 GDP figures could help FX traders opt for risk-seeking traders (selling USD and JPY), such as...

The USD and JPY cylinders are burning thru the markets again, with USD holding an edge of JPY due to the tensions between the 2 Koreas. But this may be a shortlived calm before the next JPY storm, paving way for 108 in EURJPY, 127.80 in GBPJPY and 83.60 in CADJPY. USDJPY still trades w/in the...

GBP tumbles across the board, further breaking away from its previous positive correlations with equities as the likelihood of further quantitative easing from the Bank of England haunts the currency. Readers of this website will recall our Dec 18 article http://bit.ly/5Meew3 laying out the...

The GBP damage remains the headline of the day (see previous IMT) amid rising expectations of further quantitative easing from the Bank of England. GBPUSD bottoms at the $1.5273--50% retracement of the rise from the Jan 2009 low to the Oct 2009 high. Any recovery is seen capped at $1.5345-50....

Dollar regains ground after brief losses following the release of Bernankes speech, which sounded a bit more dovish than expected, reiterating the Fed Funds rate to remain exceptionally lowfor an extended period. The 11% decline in Jan new home sales failed to move the market. Traders must await...

DOUBLE ASSAULT on risk appetite as Fitch downgrades its rating on Greeces 4 biggest banks right before US consumer confidence plunges to 10-month low at 45 from a revised 56.5. We warned on Twitter.com/alaidi 40 seconds after the breaking news on consumer confidence that the figures were widely...

Global Markets sell-off intensifies, sending USD and JPY soaring cross the board, but YEN gets the best of USD as the pair targets 88.30, 61.8% retracement of the 84.85-93.76 move. One of the main culprits was the Portuguese-German 10 year spreads hitting a fresh 11-month highs of 156 bps on...

DOLLAR & YEN DROP ON Abu Dhabi's last minute intervention to help Dubai World to repay Nakheel PJSCs maturing bond of $3.5 bln. GBP, which was at most risk of a Dubai failure is leading the FX fally against USD. GBPUSD seen retesting $1.6380, EURGBP seen targetting 0.8960 and GBPJPY capped at...

Japanese equity indices among the best-performing Asian indices despite in Monday despite US indices having paired their gains in the Friday session. FX on risk aversion mode as EURUSD gets close to that important support of $1.4830, cable vulnerable to test $1.6380 and oil prominently unable to...

YEN's PERFECT STORM as the Japanese currency soars on a combination of unexpected decline in Japanese unemployment and falling equity futures following the Dubai fallout. USDJPY HIT 84.84, AUDJPY drops 200 pips in 55 mins to 76.55, EURJPY down 300 pips below 127 and GBPJPY tumbles by 500 pips to...

TRIPLE TWITCHING HOUR may intensify the speed of the selloff in equities, which could impact options expiry in FX. GBP broadens selloff as GBPUSD drops for the 4th straight session, nearing $1.6420, but support is found at $1.6280. EURGBP breaks out of its 5-week trend line resitance of 0.8950...

Dollar drops across the board as risk appetite picks up from where NY left off, shrugging the sell-off in Japanese shares. GBP is amid the least gainers against USD after the minutes of the BoE revealed a 3-way split, with 7 members voting for a QE rise of $25 bln, one member voted for no raise...

Much ado about USD rebounds during falling markets, but JPY strength still outperforms USD....

EURGBP drops off its 0.9016 session high after German Nov ZEW survey fell by more than expected, hitting a 4-month low of 51.1 from 56. Broad GBP weakness resulted from Fitch said UK was only major economy at risk of losing its AAA credit rating. Expect EURGBP rebound towards 0.8990, while GBPUSD...