Morning Briefing
The Morning Briefing is prepared daily at the start of the European Trading session by RTFX’s trading desk. It presents a roundup of the major news headlines occurring within the global economy that may affect the forex market. This news bulletin also includes a view of our forex calendar for the day, highs and lows achieved in the previous sessions from the forex market, global indices and commodities and brief commentary about the economic headlines.
Morning Briefing for Wednesday, 22 Feb 2012 (Updated 09:24:58 CET)Euro remains resilient, EZ PMI take focus
What’s new:
Asia: Asian equities follow US counterparts and remain mixed
China: HSBC PMI Manufacturing rises
FOREX: Euro remains steady, commodity bloc currencies recover some ground
Rates in Asia and Indices:
EURUSD: 1.3264 – 1.3211.
USDCHF: 0.9138 – 0.9104.
GBPUSD: 1.5814 - 1.5767.
EURJPY: 106.16 – 105.44.
USDJPY: 80.08– 79.67.
DowJones: 12’965.69 +0.12%
NASDAQ: 2'948.57 -0.11%
S & P 500: 1'362.21 +0.07%
Nikkei: 9’544.00 +0.96%
Shanghai: 2'403.59 +0.93%
Gold: $ 1'760.30
Crude Oil: $ 106.38
Comments:
Greece secured a second bailout and in so doing has wiped the disorderly default off the board, so why haven’t we seen risky assets rally? Well they did initially but momentum quelled rapidly. US close was rather mixed yesterday and performance remained unconvincing in both directions.
So far this morning even Asian equity indices reacted similarly. A “buy the rumour sell the fact” in practice probably; but investors, returning back to sobriety, might have continued to reflect the doubts even the eurogroup had – over the pain and the implementation risks of Greece’s debt restructuring.
In the Forex markets the euro remained on the defensive and steady managing to preserve its levels yesterday while most of the riskier counterparts suffered losses throughout the day. This morning the single currency remains in positive territory up 0.16% against the USD and 0.08% against the GBP. Even the commodity bloc currencies (CAD, AUD and NZD) recover some ground this morning.
Earlier today Chinese HSBC flash Manufacturing PMI for February rose to 49.7 from the previous 48.8.
The EUR/USD has kept within the range of 1.3211-1.3262 so far this morning our preferred view is for a fall towards first support at 1.3182 unless the pair breaks past 1.3344 which would open the door to more bullishness.
Ahead of the ECB LTRO offering later next week the euro will probably continue to find support. Ahead of us today we have EZ PMIs and UK BoE minutes.
Good Day,
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