The euro produced mixed results against its major counterparts as the last Italian bond auction for the year recorded lower yields but did not reach the expected demand. The yields fell compared to November’s auction, but only EUR 7 billion was bought with EUR 8.5 billion expected. Versus the US dollar, the single currency rose to 1.2952 from 1.2925. It had earlier reached 1.2858, a 15-month low. Against the Japanese yen, the euro dropped to 100.60 from 100.75, having touched 100.06 a near-decade low. Versus the Australian dollar, the single currency fell... 

EURUSD hit fresh lows of 1.2858 yesterday, after an Italian auction of long-term debt did not go nearly as well as the shorter term auctions the day before. The yield on 10-year bonds was just a whisker lower than the unsustainable 7% level (at 6.979%), and in spite of the Treasury aiming sell EUR8.5bn of its debt, only around EUR7bn could be placed. The silver lining to be gleaned from the event was that yields on bonds with maturities between 3 and 10 years were all lower than last month’s record highs; but this news was clearly not encouraging enough... 

US wins as tough year sees end Global asset markets are quiet on this last trading day before New Year. European stocks are 0.3 percent higher, EURUSD is down 0.2 percent, gold spot is up 1.6 percent, WTI crude is unchanged and Spanish Italian 10-year bond yields are down eight and two basis points respectively. US equity futures are currently up 0.2 percent. Looking back at 2011 it has sure been a wild rollercoaster ride as most investors were bullish on the economy and asset markets going into the year. The year evolved very interestingly after a... 

Markets are generally steady ahead of New Year holidays. Broad based strength is also seen in the Japanese yen with EUR/JPY breaching 100 psychological level briefly while GBP/JPY tread water below 120. USD/JPY also dipped to as low as 77.29 so far but thin market consolidation helped stabilizing the rally in Yen. Exporter’s repatriation is cited as one of the reason for yen’s strength today. But it’s also believed that, after US’s criticism on yen intervention since August, there is no prospect of G7 coordinated intervention like... 

The EUR/USD slid below the 1.2870 2011 low and established a new 2011 low at 1.2857 before a corrective rally followed. As we wind down the trading year on the 12/30 US session, the market appears to continue this corrective rally. It is so far held below 1.2968, 50% retracement of the 1.3079-1.2857 swing. A push above this looks at the 1.30 level swing projection, which is near the 1.2994, 61.8% retracement level. IF the market gets here, there should be strong selling interest. Resistance factors reside just above as well, starting with the 1.3020 support...