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18 Apr 2013
Forex Flash: Time to hunker down? - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank note that Global markets were revisited by risk aversion on Wednesday, dragging majors lower against USD with European currencies leading the way lower.
He adds that markets were driven lower by somewhat discouraging economic readings and amid chatter about the potential for further rate cuts from the ECB (note suggestively dovish comments from Weidmann). Meanwhile, he recommends that investors note also market chatter about a potential German rating downgrade earlier in the global day. On other fronts, he adds that negativity towards CAD was aggravated after the Bank of Canada kept its benchmark rate unchanged at 1.00% as expected but lowered its growth forecasts. Elsewhere, he sees that the Beige Book failed barely left an impression given the largely soft/neutral assessment while comments from the Fed’s Bullard suggested Fed members remained in no hurry to exit its bond buying program. Looking ahead, Ng is looking for developing stories from the G20 meeting with underlying jitters expected to persist.
He adds that markets were driven lower by somewhat discouraging economic readings and amid chatter about the potential for further rate cuts from the ECB (note suggestively dovish comments from Weidmann). Meanwhile, he recommends that investors note also market chatter about a potential German rating downgrade earlier in the global day. On other fronts, he adds that negativity towards CAD was aggravated after the Bank of Canada kept its benchmark rate unchanged at 1.00% as expected but lowered its growth forecasts. Elsewhere, he sees that the Beige Book failed barely left an impression given the largely soft/neutral assessment while comments from the Fed’s Bullard suggested Fed members remained in no hurry to exit its bond buying program. Looking ahead, Ng is looking for developing stories from the G20 meeting with underlying jitters expected to persist.