Market Outlook Articles

Markets are expected to remain choppy ahead of a European Union Leaders Summit which will begin a two-day meeting on long-term plans for fiscal and banking union on Thursday. Last week, weaker-than-expected manufacturing PMI figures from the eurozone and Spain’s increasing borrowing costs were the catalyst of a free fall.…

The markets took a deed breath after pro-bailout parties won a majority in the Greek election, averting the possibility of the country’s imminent exit from the eurozone. Official projections show that parties supporting the bailout will have enough seats to control parliament. Forex investors viewed the Greek election as a…

Despite initial enthusiasm over the EU aid package for Spain agreed over the weekend, forex market participants do not want to take huge risks ahead of weekend Greek elections that could result in Greece exiting the eurozone. Rising scepticism over a €100 billion eurozone bailout for Spain’s troubled banks pushed…

The euro lost ground against the greenback after Federal Reserve Chairman Ben Bernanke disappointed investors looking for a clear signal of further U.S. monetary stimulus. Big move during the last was a result of expectations for another round of quantitative easing but what Mr. Bernanke said yesterday was probably not…

Recently the hope for forex investors had been that the U.S. economy at least could continue its growth even as Europe was declining but Friday’s U.S. jobs report confirmed that U.S. economy is not heading for a strong recovery this year. The Labor Department report showed that the U.S. economy…

Time appears to be running out as fears of a Greek financial collapse continue to mount in Europe. Without a strong government capable of implementing new reforms, Greece will not be able to get new financial aid and the country will be forced to leave the eurozone. The scenario that…

Fitch Ratings Agency cut the credit ratings of Greece one level on concerns the country will not be able to gather the political support needed to sustain its membership in the eurozone. Fitch Ratings Agency said “The strong showing of anti-austerity parties in the May 6 parliamentary elections and subsequent…

EUR/USD has been sinking as the markets continued to analyze the new political climate following the elections in France and Greece over the last weekend. Forex market participants fear that Greece will reject an existing international bailout and potentially leave the euro prompted the selling across markets. The leader of…

There’s mounting signs of sluggish global growth, and as a result we’re seeing a lot of these growth currencies suffer the biggest losses last week. If we continue to see political uncertainties in Europe linger, that’s something that could cap the euro’s upside. France and Greece hold elections today, spurring…

Downward pressure on EUR/USD increased after the latest reports showed that eurozone unemployment hit a record high (10.9%) and manufacturing output fell to a 34-month low (45.9). As well as the eurozone manufacturing and unemployment figures, the weekly ADP jobs data from the US also came in below expectations. The…

The Euro gained against the U.S. dollar after a weaker than expected GDP report released by the Bureau of Economic Analysis fueled worries about the health of the US economy. However, investors’ sentiment can change as the gulf between France and Germany, the eurozone’s two biggest economies, widens over tackling…

After a two-day meeting of the Federal Open Market Committee, the central bank left its interest rates unchanged. Fed policy makers upgraded their forecasts for growth and unemployment this year while repeating their view that borrowing costs are likely to remain “exceptionally low” at least through late 2014. Fed Chairman…

The latest data came out of the U.S. point to steady but slow growth. While strong U.S. corporate earnings are boosting the investors’ sentiment, this week the market participants will focus very closely on the minutes of Federal Open Market Committee and Chairman Ben Bernanke’s press conference. We think that…

EUR/USD fell for the second day as investors took a cautious stance ahead of Spanish and French bond auctions. Concerns that the country will be unable to finance its debt were tempered after it sold more 12-month and 18-month bills than expected on Tuesday. Eurogroup chief Jean-Claude Juncker said that…

EUR/USD headed downward as investor concern over Europe’s debt crisis intensified and economic reports in China missed estimates. China said its economy expanded 8.1% in the first quarter, the slowest pace since 2009. The yield on 10-year Spanish sovereign debt climbed 16 basis points to 5.98%. Also the cost to…

In its latest Beige Book business survey The Federal Reserve provided an assuring assessment of the U.S. economy, after Friday’s data showing a sharp slowdown in U.S. jobs creation in March triggered a sell-off in global markets earlier this week. Comments by two top Fed officials suggest the central bank…