“The market has become interested in European affairs and there is probably a certain amount of investors out there who question the long-term feasibility of the EU.”
“There's concern about this Tropical Storm Rita. People are watching that a little bit more closely, given Katrina and its impact on the market. There's some unwillingness right now to take aggressive positions,”
“Japan is signaling that they're not concerned about the pace of the decline in the yen, so people are going to continue to push the yen lower. Japanese investors are continuing to buy bonds abroad and we see more scope for yen weakness.”
“The market expects the Fed to be hawkish towards inflation. If they highlight there is a greater inflation risk further out, then there is room for the dollar to push higher against the euro.”
“The riots in France will have impacted confidence over Europe and we're also seeing key technical levels being broken, pushing the euro lower. The market may have jumped the gun in expecting the ECB to raise rates, so that's negative for the euro.”
