23 Mar 2015
USD strength sidelined, EU yields higher – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team summarizes the FX market, Equities and Yields performance in the European trading session.
Key Quotes
“The US dollar opened broadly lower in Asia, but trended higher through the first half of the European morning. The euro peaked just above $1.0880 and fell a little more than a cent (~$1.0770) before finding a reasonable bid. Sterling approached $1.50, could not sustain the upward momentum, and by late morning in London slipped below $1.4850. The dollar has been sidelined against the yen; trading in a 20-tick range on either side of JPY120.”
“The Antipodean currencies are little changed, while the drop in oil prices (~2%) took a toll on the Canadian dollar.”
“Emerging market currencies are mostly lower, though the Asian currencies have held on to their early gains, led by the Malaysian ringgit which rose 1%. The MSCI Asia-Pacific Index rose about 0.6%, extending last week's 2.7% rise, to reach new six-month highs.”
“European bourses are mostly lower, with Spain as the main exception. The Dow Jones Stoxx 600 is off 0.4%, led by consumer discretionary and energy sectors.”
“Bond markets are mixed, with core bonds yields slightly lower. Of note the Japan's 10 year benchmark yield slipped below 30 bp to reach its lowest level since late January.”
“European peripheral bond yields are 1-2 bp higher. Greek bonds remain under pressure as no new initiative is expected to come from today's meeting between Merkel and Tsipras, which is expected to be followed by a press conference.”
Key Quotes
“The US dollar opened broadly lower in Asia, but trended higher through the first half of the European morning. The euro peaked just above $1.0880 and fell a little more than a cent (~$1.0770) before finding a reasonable bid. Sterling approached $1.50, could not sustain the upward momentum, and by late morning in London slipped below $1.4850. The dollar has been sidelined against the yen; trading in a 20-tick range on either side of JPY120.”
“The Antipodean currencies are little changed, while the drop in oil prices (~2%) took a toll on the Canadian dollar.”
“Emerging market currencies are mostly lower, though the Asian currencies have held on to their early gains, led by the Malaysian ringgit which rose 1%. The MSCI Asia-Pacific Index rose about 0.6%, extending last week's 2.7% rise, to reach new six-month highs.”
“European bourses are mostly lower, with Spain as the main exception. The Dow Jones Stoxx 600 is off 0.4%, led by consumer discretionary and energy sectors.”
“Bond markets are mixed, with core bonds yields slightly lower. Of note the Japan's 10 year benchmark yield slipped below 30 bp to reach its lowest level since late January.”
“European peripheral bond yields are 1-2 bp higher. Greek bonds remain under pressure as no new initiative is expected to come from today's meeting between Merkel and Tsipras, which is expected to be followed by a press conference.”