Search
FX Market Update
0
0
FX Market Update
Wed, Oct 15 2008, 16:36 GMT
by Danske Research Team
Today we are launching our new weekly publication, FX Market Update, which provides a handy overview of the currency market. For each of nine currency pairs, key information is shown including our short-term financial models, option implied distributions and volatility data.
Highlights of this week's FX Market Update:
- • Over the past month, the fall in equities, the lower oil price and a narrowing of relative interest rates have been vital in driving the short-term financial model prediction of EUR/USD lower. This week's turnaround in equity markets and decline in oil prices have raised the fair-value estimate for EUR/USD from 1.28 to 1.31.
- • The largest deviations from our short-term financial models are AUD/USD and NZD/USD, which are both trading well above the fair value estimates. The models indicate fair values around 0.67 and 0.57 respectively, primarily driven by the poor performance of equities over the past month.
- • Following the proposal of measures by governments around the world to address the financial crisis, implied volatilities have come down for all currency pairs in recent days, although implied volatilities for all pairs except USD/JPY and EUR/USD are still trading above the levels seen last week.
- • Since last week, EUR/USD risk reversals have turned less negative, reflecting the stabilisation of the spot level around 1.36.
Published on Wed, Oct 15 2008, 16:39 GMT
Archive
- Recent moves in EUR/USD and EUR/CHF are out of sync with our short-term models
Published On Wed, Nov 26 2008, 16:42 GMT - FX Market Update
Published On Tue, Nov 18 2008, 13:46 GMT - FX Market Update
Published On Tue, Nov 4 2008, 17:28 GMT - FX Market Update
Published On Tue, Oct 28 2008, 15:59 GMT - FX Market Update
Published On Wed, Oct 15 2008, 16:36 GMT
Danske Bank
| Holmens Kanal 2-12, DK-1092 Copenhagen
http://www.danskebank.com/ | danskeresearch@danskebank.com
Legal disclaimer and risk disclosure
This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange. Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.Related reports
Daily Market Commentary - What is Behind the Dollar Rally? by GFT (Global Forex Trading)
Tue, Dec 2 2008, 22:17 GMT
Market Session Recaps - New York Session by FOREX.com
Tue, Dec 2 2008, 22:13 GMT
U.S. Forex Market Commentary by GCI
Tue, Dec 2 2008, 22:10 GMT
Daily Forex Technical Report by ActionForex.com
Tue, Dec 2 2008, 15:26 GMT
Foreing Exchange - USDCHF: Key resistance remains 1.2354, the March 2007 high by Avantage Financial GMBH
Tue, Dec 2 2008, 14:32 GMT
audusd, eurusd, nzdusd, usdjpy
View AllRelated content
COLUMN-Dollar demise much exaggerated: John Kemp
Thomson Financial News | Tue, Dec 2 2008, 14:58 GMT
Euro Rebounds Vs Dollar As Oil Prices Eclipse $50/Bbl
Dow Jones | Tue, Dec 2 2008, 13:56 GMT
FACTBOX-Inflationary pressures in the euro zone
Thomson Financial News | Tue, Dec 2 2008, 13:38 GMT
UPDATE: Euro-Zone Producer Prices Post Record Drop In Oct
Dow Jones | Tue, Dec 2 2008, 11:17 GMT
WRAPUP 3-Bank of Japan expands collateral to ease cash crunch
Thomson Financial News | Tue, Dec 2 2008, 11:13 GMT
audusd, eurusd, nzdusd, usdjpy
View All
Interested in forex trading? forex brokerage firms!
FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)
[Read Premium full description]
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.