Entries from April 2009 ↓

Global emerging market equity funds absorbed $3.79 billion in week to June 3 vs just over $2 billion in previous week, says fund tracker EPFR Global. Notes investors put more cash in emerging markets, commodities, energy, following broad weakness of safe-haven USD, JPY. Adds higher risk appetite eyed in $22.7 billion being pulled out from money market funds to look for higher yields, also $1.1 billion being pumped into global bond funds – largest weekly inflows since 4Q of 2004. Says U.S., Japan, Europe equity funds had outflows on concerns over weak domestic demand. Notes global emerging market equity funds have taken $26.1 billion net inflows year-to-date vs $50 billion net outflows for whole of 2008

NZD/USD traders today will eye 0.6375/0.6400 area as continued resistance following Wednesday evening’s sharp sell off, says BNZ Bank FX Strategist Danica Hampton. Adds NZD’s fortunes will ultimately mirror those of the major currencies; immediate support on day should be evident on any pullback to the 0.6275-0.6300 level, “though a breach would encourage those looking for a deeper pullback for the currency in the days ahead.” Pair last at 0.6333.

USD/CAD is ending sharply lower, around C$1.0973, as a renewed rally in crude oil futures fueled a sharp rebound in the currency. A reference to recent CAD strength offsetting economic positives, if it persists, in the Bank of Canada’s statement earlier in session had little short-term impact on the currency. On Friday, Statistics Canada will release the labor force survey for May. TD Securities said the consensus forecast is for the Canadian economy to lose 36,500 jobs after gaining 35,900 in Apr, and for the unemployment rate to come in at 8.3% in May from 8.0% in the previous month. “We remain positive on the CAD’s near to medium term prospects and suspect that CAD slippage around the jobs data should remain limited before the underlying CAD bull trend reasserts itself,” TD said.