FX markets have be pretty quiet overnight, whilst Asian equity indices have pared back their gains from yesterday’s rally. The Nikkei is -0.7%, Hang Seng -1.2% and Shanghai Composite flat on the day. Overnight the RBA minutes were released, revealing that the decision to cut rates at the last meeting was closer than originally assumed – and in fact there was serious consideration given to staying on hold. In the end the central bank chose to err on the side of caution and cut rates from 4.75% to 4.50%, but these minutes suggests they are in no rush to follow up that action with further easing. In turn, AUDUSD managed to stabilize above 1.0150 levels and touch a high of 1.0227 today.
The Eurozone debt saga is going through a quiet phase as Italy’s next intended Prime Minister, Mario Monti, works on the task of building a new government and Greece’s technocratic government settles in. However, confidence continues to take some shots from the Greek opposition party, as its leader Samaras said that he would not agree to any new austerity measures or sign any binding agreements demanded by the EU. This statement underlines the importance of the new Greek leadership succeeding; the failure of this latest incarnation of government would almost certainly lead to even deeper political unrest, with the future of Greece and thereby the Eurozone being placed in jeopardy.
Today’s data calendar is heavy with releases; the morning session is headlined by the latest UK CPI and Eurozone Q3 GDP, then the afternoon session will be dominated by a number of US releases. Amongst the data expected from North America we have PPI, retail sales, the Empire manufacturing survey, and business inventories.
By
M.Zohaib Gadit
Forex Trading Consultant
The Eurozone debt saga is going through a quiet phase as Italy’s next intended Prime Minister, Mario Monti, works on the task of building a new government and Greece’s technocratic government settles in. However, confidence continues to take some shots from the Greek opposition party, as its leader Samaras said that he would not agree to any new austerity measures or sign any binding agreements demanded by the EU. This statement underlines the importance of the new Greek leadership succeeding; the failure of this latest incarnation of government would almost certainly lead to even deeper political unrest, with the future of Greece and thereby the Eurozone being placed in jeopardy.
Today’s data calendar is heavy with releases; the morning session is headlined by the latest UK CPI and Eurozone Q3 GDP, then the afternoon session will be dominated by a number of US releases. Amongst the data expected from North America we have PPI, retail sales, the Empire manufacturing survey, and business inventories.
By
M.Zohaib Gadit
Forex Trading Consultant
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