US Dollar Struggles to Keep its Safe Haven Roots as Fundamentals Dim

Euro Strength at Risk Ahead of Stress Tests, Dow Jones Reversal

Japanese Yen May Strengthen Further As Risk Sentiment Falters

British Pound Looks to Improved Demand and Growth for Support

Canadian Dollar Looks to BoC Rate Decision, Inflation for Next Moves

Australian Dollar Momentum Turns Down, Risks of Further Declines

New Zealand Dollar At Risk As Pessimism Grows...

Price action is often deceiving. While there is little arguing that the market defines what is fair value for an asset or underlying risk premium itself; this is an assessment that is valid for only that particular point in time. While speculative interests are prevalent in the capital markets, their influence is biased and highly reactive.



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During the European Session, Moody’s cut Portugal’s credit rating by two notches to A1 from AA2 but maintained a stable outlook. The ratings agency said that the indebted country may need to impose further austerity measures in conjunction to those already announced. The agency also cited the fiscal position of the EMU member as likely to deteriorate over the medium-term which could depress growth prospects. Meanwhile, Fitch’s Brian Coulton affirmed the “negative outlook” for Portugal, and went...

Recent forex market moves have led to a sharp advance in forex options market volatility expectations, making short-term forecasts especially difficult and warning of large US Dollar moves ahead. Shifts in FX Options risk reversals have been especially dramatic in fast-moving pairs such as the British Pound/US Dollar and US Dollar/Swiss Franc.

Recent forex market moves have led to a sharp advance in forex options market volatility expectations, making short-term forecasts especially...

Risk aversion swayed the currency market during the overnight session, with the euro breaking below the 20-Day SMA (1.2208) to reach a low of 1.2177, and the drop in sentiment is likely to drag the single-currency lower going into the U.S. trade as equity futures foreshadow a lower open for the North American market.

Talking Points
• Japanese Yen: Rallies Across the Board
• Pound: U.K. Mortgage Approvals Hold Steady in May
• Euro: Economic Confidence...