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 Friday, 10 Feb 2012 (Updated 09:31:32 CET)Greece to re-draft its proposal
What’s new:
Asia: Asian equities mixed over Greek hiccups
ECB: Rates on hold, eases LTRO eligibility criteria
BoE: New GBP 50 Billion boost to Asset Purchases Target
RBA: Monetary policy statement release sounds dovish
Rates in Asia and Indices:
EURUSD: 1.3290– 1.3239.
USDCHF: 0.9137 – 0.9113.
GBPUSD: 1.5820 - 1.5767.
EURJPY: 103.22 – 102.83.
USDJPY: 77.75 – 77.52.
DowJones: 12’890.46 +0.05%
NASDAQ: 2'927.23 +0.39%
S & P 500: 1'351.95 +0.15%
Nikkei: 8’947.17 -0.61%
Shanghai: 2'351.98 +0.1%
Gold: $ 1'728.40
Crude Oil: $ 99.34
Comments:
Despite news that Greek politicians had found common ground to secure bailout yesterday afternoon; the Eurogroup remained unimpressed with the agreement reached and asked for deeper cuts. Another meeting has now been scheduled for Wednesday of next week and hopes are that the Eurogroup will be able to endorse the plans at that time.
Nonetheless the EUR/USD has held within the range of 1.3239-1.3290 so far this morning. Support lies in 1.3168-1.3227 region while resistance is expected at 1.3333-1.3380.
Yesterday the ECB made no changes to its policy and in the press conference that followed that interest rate decision ECB President Mario Draghi suggested that the ECB would be easing the eligibility criteria for those banks participating in the Long Term Refinancing Operation (LTROs) at the end of February.
Mr Draghi also said that the while data has tended to stabilize economic outlook remained uncertain and that inflation is likely to remain in breach of target levels but is likely to decrease over the medium term.
The BoE remained on hold as well when it came to the interest rate decision but has announced an additional GBP50 billion for its Asset Purchases target. In a statement the Governor noted some positive signs and a gentle recovery but the risks posed by the euro zone situation remained substantial.
The RBA’s statement on monetary policy, given overnight, sounded dovish as the Australian Central Bank put forward its warnings with regards to the global outlook. The Aussie is weaker across the board this morning it loses 0.47% against the euro and 0.68% against the US Dollar.
Good Day,
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