FX Weekly: 15th August 2011

 ‘Eurobond’ debate providing early support for the Euro early this week but German opposition is creating resistance. German approval would be a major development – considering all the options Euro-area authorities have tried, a Eurobond could be the last throw of the dice for the Euro

 Volatility in equities, commodities and FX continues to soften across the board with the exception of CHF currency pairs due to risk of mammoth intervention and/ or currency peg between Swiss Franc and Euro

 USD/JPY trading close to historic lows – intervention risk is high. Sharply weaker equity market alongside a stronger Yen would be a catalyst for intervention




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