The risk-on sentiments in financial markets continue as we’re entering into US session. European equity indices are broadly higher after EU leaders agreed on the so called fiscal compact. Also, investors seem to be optimistic that Greek PSI situation would be resolved soon. US futures also point to higher opens. Dollar is seen broadly lower following risk appetite with dollar index back below 79 level. Sterling and Canadian dollar took out recent resistance against the greenback but Euro and Aussie, despite to rebound, is held in near term range. Italian and Spanish yields are both lower as bonds rebound. However, Portugal yields are hovering near record high, including two-year, five-year and 10-year bonds. There are continuous talk of second bailout for Portugal. Prime Minister Coelho tried to convince … Read entire article »

By: Barbara Zigah The Euro appears to be approaching a key test level as news that the Greek government is close to clinching a deal with its private bondholders helped to boost the common currency. The U.S. Dollar meanwhile continues to soften after last week’s Federal Reserve announcement which committed the central bank to an extended period of ultra low interest rates. The U.S. Dollar Index, used to gauge the greenback’s relative strength against other major currencies, fell to 78.883 .DXY, a decline of 0.4%. As reported at 12:50 p.m. (JST) in Tokyo, the Euro was trading against the U.S. dollar at $1.3187, a gain of 0.3% and edging closer to the 6-week high struck last week on the EBS trading platform. One forex strategist said that the near term direction for … Read entire article »

Dollar is back under some pressure as risk markets recovered from Monday’s selloff. DOW staged an impressive rebound from intraday low of 12529 to close at 12653, just down -0.05%. Asian indices are seen generally higher as markets find some bids. After the EU summit, 25 of 27 EU countries agreed to the so called fiscal compact. Only UK and Czech Republic, which are not Eurozone states, refused to sign the compact in March. ECB President hailed the agree as the first step towards a “fiscal union” and will “strengthen confidence in the Euro area”. Also, EU leaders agreed that the EUR 500b permanent rescue fund, the European Stability Mechanism will be operational in July, a year ahead of planned. However, the issue on raising the ESM/EFSF ceiling was not … Read entire article »