Action Insight Mid-Day Report 4-15-11

Mid-Day Report: Dollar Steady after Data, Euro Lower on Ireland Downgrade

Dollar remains steadily in range in early US session after data shows stronger than expected inflation reading in March. CPI rose to 2.7% yoy versus expectation of 2.6% yoy, highest reading since December 2009 and a sharp jump from February's 2.1% yoy. Empire stat manufacturing index beat expectation and rose to 21.7 in March. TIC capital flow dropped to 26.9B in February. Industrial production rose 0.8% in March, better than consensus of 0.6%.

Action Insight Daily Report 4-15-11

Daily Report: Markets Sentiments Hit Mildly by Strong China CPI
Markets sentiments is hit mildly earlier today after strong Chinese inflation data triggered concern of further tightening from China. Asian equities are generally lower but losses are limited so far. Yen strengthens mildly together with falling stocks and recent decline in yen crosses might continue as the day goes. Dollar also recovers mildly but strength is muted. The greenback would continue to face pressure from surging commodity prices with gold making another record high at 1480 and silver extends up trend through 42 level. Euro and swissy are both resilient and would likely remain strong against the greenback even though Moody's just downgraded Ireland's rating by two notches to Baa3 from Baa1 and issued a negative outlook.

Action Insight Mid-Day Report 4-14-11

Mid-Day Report: USD/JPY Dips after Jobless Claims, Euro Lower on Greece Concern

Dollar dips versus the Japanese yen in early US session after data showed initial jobless claims unexpectedly rose to 412k in the week ended April 9. That's the highest number in two months and much worse than market expectation of 380k. COntinuing claims, though, dropped by 58k to 3.68m in the week ended April 2, the lowest number since September 2008. Headline PPI missed expectation and rose 0.7% mom, 5.8% yoy in March only while core PPI rose 0.3% mom, 1.9% yoy. USD/JPY extends recent pull back from 85.51 an breaches 83 level after the release while the Japanese yen also strengthen mildly. USD/CHF made new record low earlier today and remains soft for deeper decline.

Action Insight Daily Report 4-14-11

Daily Report: Dollar Back Under Pressure, USD/CHF at Record Low

Dollar index's recovery was rather brief and dips to 74.66 in Asian session today to extend recent decline. Recovery in commodities, in particular in precious metals, is a main driving force in the current decline in the greenback. Silver takes the lead and recovers to above 41 level and is set to test recent high again. Meanwhile gold follows and is staying firm above 1460. USD/CHF makes new record low at 0.8895 on broad based strength in swissy. The greenback manages to stay above recent low of 1.4519 but is vulnerable to deeper fall should crude oil could extend yesterday's recovery.

Action Insight Daily Report 4-6-11

Daily Report: Yen and Dollar Extend Down Trend

Yen and dollar resume weakness today and are both broadly lower against European majors. Yen extended the post intervention decline as partly driven by revival of carry trades. In addition, BoJ is said to be considering a credit program to spur lending for reviving the economy after March's natural disaster. The bank may make an announcement as early as tomorrow after a two day meeting. Dollar, on the other hand is pressured as Fed minutes showed diverging opinion among members on whether to unwind the stimulus measures this year. Gold jumped to record high of 1458.6 overnight while crude oil is firm above 108, both keeping the pressure on the greenback.

Action Insight Mid-Day Report 4-5-11

Mid-Day Report: Euro Lower on Portugal Downgrade, Sterling Jumps in Services PMI

Moody's downgraded Portuguese debt rating for a second time in less than a month day, by one notch from A3 to Baa1. The rating agency also placed the country on review for another downgrade. Yield on portugal's 10 year bond jumps after the news to above 8.75%. CDS also rose above 590 basis points and is above Ireland's level for the first time since August 2010. Portugal's situation has deteriorated after the government failed to seek approval of the budget. Prime Minister Jose Socrates resigned and election for the new government will take place on June 5. Moody's expects the elected government will tap the European Financial Stability Facility (EFSF) with 'urgency'.

Action Insight Daily Report 4-5-11

Australia dollar is mildly lower in Asia today after data showed the country unexpectedly recorded the first trade deficit in almost a year. Also, RBA left rates unchanged and published a rather balanced statement. Trade balance swung from revised AUD 1.43b surplus in February to AUD 0.21b in January and ended a 10 month run of surplus, which was the longest streak since 1972-73. Exports posted a second straight month of contraction as intense flooding across Queensland hampered coal exports. Meanwhile, the Japan's disaster would probably hamper Australian exports in the coming months but would at least be partially offset by surge in commodity prices.