FOREIGN EXCHANGE

US$ weakness ahead of Bernanke's testimony has helped the currencies recover
21 May 2013 - US Dollar selling ahead of Bernanke's testimony on Wednesday was the name of the game today with most currencies regaining a little lost ground. The real action was in the commodities, which had a wild ride, particularly Silver. Equities made new highs but finished pretty much unchanged. Today's highlights will be the RBA Minutes, and later from the UK, the CPI outlook. The main focus though remains on Bernanke and the dollar may remain under pressure until then..

The dollar continues to motor north, with plenty more to come in the weeks ahead...
20 May 2013 - Another day, another new high for global equities on Friday. One day it is going to get very ugly, but who knows when?! Certainly not me! In FX land, the Dollar rules and the currencies are generally wilting under its strength, led down by the Yen and the commodity bloc, and it looks as though there is plenty more of this to come. Public Holidays in Europe on Monday may mean a quiet start to the week.

Softer data pressures the US$ before comments from the Fed come to the rescue
17 May 2013 - Soft US data had the dollar under pressure, before it turned around mildly, after some Fed speak that suggested the possibility of a winding back of QE, with the added chance of it finishing altogether by year end. The market looks as though it may be in weekend mode already and in the absence of any major data today it could be a rangebound session.

Poor EU data kept the Euro under pressure. Equities at new highs - again!
16 May 2013 - Poor EU data dented the Euro while mildly upbeat UK Jobs data, Inflation/Growth outlook helped underpin Cable. Aud and Kiwi are recovering a little from their lows but still remain pressured. Yen and Swissy also recover from new lows against the dollar. Equities higher, Commodities lower. Too much to watch! More to come today with EU, US CPI & US Jobless Claims leading the charge.

Aud under pressure following the budget. US$ stronger all round, with more to come
15 May 2013 - The US$ remains in charge at present and has everything else on the run, with the Aud and the Yen under particular pressure and more of the same appears to be the most likely outcome. There is some important data out today, headed by the German GDP, while locally the WBC Consumer Confidence will be the focus. Equities continue to head to their daily all time highs as the bubble continues to grow.

Aud remains heavy ahead of the budget
14 May 2013 - The dollar and equities remains firm after today's US data and this theme looks likely to continue through today's session. The Australian market will focus on today's federal budget, while the main data of the session will be the German CPI and ZEW Economic Sentiment survey which could bounce the Euro around.

US Dollar strength appears to be the main theme this week. Aud, Yen under pressure
13 May 2013 - The selloff in the Aud and Yen provided the main highlights in what was otherwise a big session for the Dollar on Friday. More of the same appears most likely in the week to come with plenty of data out, beginning today with some important Chinese and Australian figures, to be followed later by the US Retail Sales, Business Inventories.

$/Yen through 100, Aud below 1.0100 on Fed tapering talk. Equities, Bonds unchanged
10 May 2013 - The US$ soared today on the combination of hawkish comments from the Fed's Plosser and the improved US jobless claims. The Aud got smashed after US$/Jpy headed through 100.00 and the Euro remains under pressure, but is holding 1.3000 for the time being. RBA MPC Statement ahead.

Euro lifted by German data again. Australian, NZ jobs data, China CPI coming up
09 May 2013 - Good German data again helped the Euro higher, diminishing the chances of an EU rate cut. Good housing data helped cable higher. Equities continue to make all time highs (S+P, Dow, Dax). Today Asia will have its turn in the limelight with jobs data coming up from both Australia and NZ, with China CPI also in the mix. It is also Ascension Day, so holidays in the EU will make for thinner than usual liquidity.

Aud, Kiwi under pressure following the RBA decision, RBNZ comments. More cuts to come. Equities higher
08 May 2013 - Better German data initially helped the Euro, although it has since given up some ground. Aud and Kiwi remain heavy after the RBA rate cut and further losses seem likely with further cuts in the pipeline. Equities continue their one way path higher with the S+P making a new all time high.