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26 Jun 2013
Flash: Markets, a mixed effect on FX space – TD Securities
FXstreet.com (London) - Marcin Budkiewicz, stratagst at TD Securities said that Equity markets gained in Asia and Europe.
He said they did so following the news in China overnight that the PBOC stepped in to provide financing to banks and stabilize interbank rates. He added that this has led has to further easing of credit conditions, with the 1-year interest rate swap falling ~17bp to 3.90%, the lowest since June 18th, and the 7-day repo rate fixing down 78bp at (a still elevated) 7.22%. As a result, he explained that the Hang Seng rallied by 2.4%, and markets in Europe are also between 1.2% and 2.1% higher, with FTSE trailing the others at +1.1% ahead of the Spending Review later today
The effect on the currencies has been mixed, and he said with NZD and AUD both gaining 0.5% vs. USD, and outperforming GBP and EUR which remain under pressure after the better US durable goods and consumer confidence data yesterday. In particular he noted, EUR has today lost another 0.5%, and traded at 1.3019 vs. USD at the time of writing.
He said they did so following the news in China overnight that the PBOC stepped in to provide financing to banks and stabilize interbank rates. He added that this has led has to further easing of credit conditions, with the 1-year interest rate swap falling ~17bp to 3.90%, the lowest since June 18th, and the 7-day repo rate fixing down 78bp at (a still elevated) 7.22%. As a result, he explained that the Hang Seng rallied by 2.4%, and markets in Europe are also between 1.2% and 2.1% higher, with FTSE trailing the others at +1.1% ahead of the Spending Review later today
The effect on the currencies has been mixed, and he said with NZD and AUD both gaining 0.5% vs. USD, and outperforming GBP and EUR which remain under pressure after the better US durable goods and consumer confidence data yesterday. In particular he noted, EUR has today lost another 0.5%, and traded at 1.3019 vs. USD at the time of writing.