Scribd
Upload
34 views

Faros Morning Update 082310

AUD / USD gapped lower on the open down through 0.8840 after finishing the week at 0.8940. EUR / USD saw another round of selling in the European session as comments from Moody's took the pair below 1.2700 briefly. AUD may benefit from M&A rumors around SAB plot to buy Foster's for GBP7bn.

Uploaded by

api-31029184
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
34 views

Faros Morning Update 082310

AUD / USD gapped lower on the open down through 0.8840 after finishing the week at 0.8940. EUR / USD saw another round of selling in the European session as comments from Moody's took the pair below 1.2700 briefly. AUD may benefit from M&A rumors around SAB plot to buy Foster's for GBP7bn.

Uploaded by

api-31029184
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

1 Dock Street

Stamford, CT 06902
www.farostrading.com
www.twitter.com/FarosTradingLLC

FAROS TRADING | FX MORNING UPDATE

Market Summary – 08/23/2010

Good Morning.
ZAR rallied overnight early after the article in the FT regarding
AUD started the week off digesting the election results from HSBC’s planned purchase of Nedbank ahead of Standard
over the weekend as market players focused on the first hung Chartered. HSBC is rumored to be considering a 70% stake
parliament in Australia in 70 years. AUD/USD gapped lower on which is equal to 50bn ZAR. USD/ZAR traded as low as 7.2800
the open down through 0.8840 after finishing the week at after closing Friday around 7.3200 and we are now squeezing
0.8940 and we have retraced back through the Friday close as back toward 7.3300 as we walk in.
we walk in this morning on a bit of a short squeeze. AUD may
benefit from M&A rumors around SAB plot to buy Foster’s for EUR/HUF and EUR/PLN rallying overnight as the Hungarian rate
GBP7bn. decision is expected this morning and Poland’s tomorrow.
EUR/HUF traded as high as 281.48 area, just shy of the 50 day
JPY strengthened against the USD and EUR while weakenening at 281.92. EUR/PLN back through 3.9900 and we see the
against the AUD and we heard the usual conflicting commentary 4.0000 level as resistance for now.
out of Japanese officials overnight. “PM, BoJ Gov talked over
the phone Monday morning”, “Kan, Shirakawa dis not touch on CAD is recovering from the beating it took on Friday with
FX intervention”, “PM, BoJ Shirakawa agreed to work closely”. USD/CAD trading down to 1.0450 afater opening up through
EUR/JPY seems on a one-way mission to the June/July lows 1.0500.
around 107.40 area and NZD/JPY’s break of 60.00 seems
inevitable. USD/JPY stubbornly above 85.00 but for how long? USD/MXN holds above the 50 day at 12.7280 for now and it
The high was 85.80 overnight and we are testing the lows down feels like another false break higher could be in the offing for
at 85.20 area now this morning. the pair.

MYR rallied to a new post de-peg low of 3.1250 aver the largest Good Luck
onshore bank CIMB released a report saying further
liberalization ahead for the MYR and it will go full convertible.

The EUR/USD saw another round of selling in the European


session as comments from Moody’s took the pair below 1.2700
briefly. Moody’s indicated it sees Europe economic growth
lower than the rest of the World, poses downside risk for
sovereign ratings. EUR/USD touched down to 1.2681 and
bounced back through 1.2700 as we walk in this morning.
Central banks were rumored on the bid at 1.2700, however
global growth fears continue to outweigh sovereign reserve
management diversification and EUR pressure is likely to remain
in the short term.

GBP benefited from a UK Telegraph piece which indicated UK


rates could rise as high as 8% within 2yrs. GBP/USD rallied as
high as 1.5620 area before cooling back to 1.5530 as market
players realized it was a report from a ‘think tank’.

© Copyright 2010, Faros Trading, LLC. All rights reserved. This message is intended solely for the individual(s) named, and may contain confidential or privileged information of
Faros Trading, LLC. Any unauthorized review, dissemination, distribution or copying is strictly prohibited. If you have received this message in error, please notify the sender
immediately and permanently delete both the message and any attachments. We do not waive confidentiality by mistransmission. This communication is not investment advice,
an offer, or solicitation of any offer to buy or sell any security, investment or other product.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy