Neal's Feed
Jan 11, 2013

Why buy euros if the zone isn’t working?

LONDON (Reuters) – Closer consideration of the implications of Thursday’s comments by European Central Bank President Mario Draghi may lead some to question if the euro’s subsequent rally against the dollar is sustainable.

Already there is talk in the foreign exchange market of reasonable sellers of euros against the greenback in both the $1.3290-00 and $1.3320-40 areas.

Nov 9, 2012

Fiscal cliff impact may hobble hedge fund FX flows

LONDON, Nov 9 (Reuters) – Among those peering most anxiously
over the U.S. “fiscal cliff” are arguably hedge fund foreign
exchange sales traders and their banks.

The implications of possible U.S. tax hikes for hedge fund
FX volumes and, by extension, profitability in early 2013 are
not pretty. There are implications for the wider market too.

Oct 31, 2012

Sandy repair effort may see dollar rise

LONDON (Reuters) – “We take care of our own,” wrote New Jersey’s Bruce Springsteen and that sums up why the dollar could well rise as efforts to repair the damage caused by superstorm Sandy stimulate the U.S. economy.

With plentiful natural resources including shale gas and oil on tap, the U.S. economy is well placed to generate dollar-positive domestic growth as it repairs and rebuilds after the storm.

Oct 22, 2012

Politics may leave sterling lagging euro

LONDON, Oct 22 (Reuters) – Good news on the British economy
last week could not stop sterling falling against the euro.

Perhaps, with the euro zone crisis in abeyance, investors
are less inclined to buy sterling as a bulwark against the risk
of euro depreciation.

Oct 19, 2012

Policy, not M&A, is key to yen weakness

LONDON, Oct 19 (Reuters) – If the Japanese yen is to weaken
further against the dollar, as the Tokyo authorities
hope, it will need more of a driver than just offshore
acquisition activity by Japanese corporates.

The authorities will have to do some of the heavy lifting
through more monetary easing or foreign exchange intervention.

Oct 9, 2012

NZ dollar to outpace a burdened Singapore dollar

LONDON, Oct 9 (Reuters) – Buying New Zealand dollars and
selling Singapore dollars may have merits at a time
when major exchange rates are holding in ranges.

An important factor in the New Zealand dollar’s favour is
the performance of prices for the country’s main commodity
exports.

Jul 27, 2012

Not just Olympians should go for gold

LONDON, July 27 (Reuters) – As competitors await Friday’s
opening of the Olympic Games to begin their quest for gold
medals, they may not be alone in their pursuit of the precious
metal.

Gold, set for its best week of gains since late May, may go
higher still, even after being boosted on Thursday by European
Central Bank President Mario Draghi’s pledge to do whatever was
needed to safeguard the euro.

Jul 10, 2012

ECB rate cut risks unintended consequences

LONDON, July 10 (Reuters) – Euro zone money market desks are
feeling the unintended consequences of the European Central Bank
(ECB) cutting its deposit rate to zero.

The ECB’s deposit rate usually acts as the floor for money
market rates and represents a safe haven where banks can park
money with the central bank to avoid counterparty risk – the
risk that a private borrower might prove unable to repay a loan.

Jul 6, 2012

Short euro/rouble might be the July play

LONDON, July 6 (Reuters) – Going short of euros against the
Russian rouble might have some merit after Thursday’s
European Central Bank (ECB) interest rate cut.

The euro has broken below its 200-day moving average (dma)
against the rouble and may be poised to test its 55-dma, which
is currently at 40.1675.

Jun 17, 2012

Post-election euro rise would bring out sellers

LONDON (Reuters) – Any euro bounce against the dollar exchange rate in the wake of Sunday’s Greek election might be limited with investors and reserve managers ready to sell into a rally.

The harsh reality may be that investors, including reserve managers, take the view that a long, hard road for the euro zone still lies ahead.

    • About Neal

      "From 1985-2009, I worked in foreign exchange trading and latterly sales in the City. Since joining Thomsonreuters in Sept 09, I write columns on currency issues for the wire, contribute briefer daily FXComments, co-host the "Dealing Room" chatroom with colleagues across the globe, and appear regularly on FX related Inside shows."
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