Font Size : Increase font size Increase font size Decrease font size
Online Trading Tips

«     »

"wwsgd" style="display:none;">

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

The currency trading sector ended up being muddled on Tuesday without any clear themes appearing and choppy trading. The yen and Swiss franc were under performers as a result of minor theme favoring higher risk currencies. The Canadian dollar was the best accomplishing G10 currency alongside the Scandinavian crosses as oil costs rallied. The Australian dollar ended up being the saddest performer as floods continue to ravage the country.

The growing story is the euro prior to a major bond auction in Portugal on Wednesday. The Treasury there intends to sell somewhere between 750 million and 1.25 billion of 4-9 year bonds following gossips distributed that it’ll need to tap into the European bailout fund.

Portuguese political figures appeared to engage in all-out attempts in order to shore up certainty in advance of the sale. Prime Minister Jose Socrates said the country doesn’t require a bailout. “Portugal will not request financial aid for the simple reason that it’s not necessary,” he stated. Soon after, a leaked report appeared in the Portuguese press implying that the 2010 government budget shortfall was underneath the 7.3% goal.

Japanese officials likewise came out to offer support to the European bond market. In an announcement most-likely timed to concur with the Portuguese sale, Minister of Finance Yoshihiko Noda stated Japan is going to re-invest a percentage of its euro FX reserves in joint European debt to be distributed later this month.

The timing with the announcements stinks of desperation after insurance against a Portuguese default hit record levels previously this week. The 9-year Portuguese benchmark bond is at the moment yielding 6.8% after flirting with 7% on Monday. A yield above 7% will possibly induce a rout on the euro and set-up a frightening Spanish auction on Thursday.

We suppose Portugal will pull some strings to help make sure the auction yield is close to what’s anticipated. In that event, the yields in the hours and days immediately after the sale could prove telling. The results will be unveiled around 5:30 a.m. ET (1030 GMT). Content provided by

Easy Pips Forex Signals automatically delivers alerts based on simple forex strategies and strict money management. Using their Forex Signals is like having a managed forex Account without giving up access to your funds.

RSS feed


No comments yet.

Sorry, the comment form is closed at this time.