Easy Pips Daily Fx Trader News
Easy Pips Daily Fx Trader News
China’s determination to bring up the banking reserve ratio by fifty basis points set an early risk-averse tone for markets but the concerns did not last and markets ended up whippy and directionless through the rest of the day. The pound sterling and New Zealand dollar were the top performers while the Swiss franc and Japanese yen lagged.
Sentiment improved following a report displaying that U.S. initial jobless claims fell to the lowest since July. First-time claims for jobless benefits fell to 435K from 450K in the week ending Nov. 6. The U.S. dollar climbed to the highest in a month versus the yen immediately after the report but afterwards gave back a big portion of its gains.
A U.S. bond auction sent ripples through the market. The sale of $ 16 billion in 30-year bonds was significantly weaker than anticipated. The market was planning on 4.275% however the issue sold at 4.320%. The almost 5 basis point miss is one of the worst, if not the worst in the previous five years in the long bond. A round of unpredictability struck the market soon after the auction as market participants utilized the bond weakness as a buying opportunity. What had been in the beginning a dollar positive, transformed into a dollar negative and assisted the euro rally of more than 100 basis points from its lows.
Anxiety regarding Ireland has been damaging the euro and Irish borrowing costs climbed for the 12th consecutive day. At one stage during the session, Irish 10-year yields climbed by more than sixty basis points. That sent the EUR/USD to a one-month low but discount purchasing of Irish bonds paying 9% per year helped reverse the trade as did calming responses from Irish central bank Governor Patrick Honohan.
Take note that November 11 is a holiday in North America, the UK and segments of Europe so the data calendar is light and market liquidity will be thin. Be prepared to see choppy trading following potentially large moves in the data-heavy Asia-Pacific session. Content provided by AroundFX.com.
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