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 Thursday, 12 Apr 2012 (Updated 09:21:46 CET)Euro lifted by easing prospects; Aussie jumps on jobs report
What’s new:
Forex: Aussie jumps to 1-week high on jobs report; US dollar weighed by Yellen’s comments
Global Markets: Asian shares lifted by Fed’s Beige book and Australian jobs report
Australia: Stronger than expected jobs report lifts Aussie
United States: Fed’s Beige book shows economy improving, but loose policy to continue
United States: Fed Vice Chair Yellen endorses Fed view that rates to remain low through 2014
Euro zone: Italy to sell bonds maturing in 2015, 2020 and 2023
Forex rates in Asia and Indices:
EUR/USD 1.3107 - 1.3151 +0.25 %
USD/CHF 0.9144 - 0.9179 +0.27 %
GBP/USD 1.5904 - 1.5937 +0.16 %
USD/JPY 80.83 - 81.12 -0.18 %
EUR/CHF 1.2020 - 1.2034 +0.01 %
EUR/JPY 105.97 - 106.58 -0.44 %
Dow Jones 12716.92 - 12844.82 +0.70 %
Nasdaq 2702.97 - 2726.94 +0.48 %
S&P 500 1358.98 - 1374.71 +0.74 %
Nikkei 225 9449.49 - 9541.04 +0.69 %
Shanghai 2307.841 - 2351.055 +1.32 %
Gold spot 1656.13 - 1660.55 -0.02 %
Oil Future 102.39 - 103.19 +0.39 %
Comments:
The yen extended its decline for a second straight day on Thursday weighed by remarks made by Bank of Japan Governor Shirakawa who said he will continue pursuing more quantitative easing. The euro was higher against the dollar and the yen after the European Central Bank suggested the possibility of more easing. The dollar on the other hand was under pressure against most of its major currencies after Federal Reserve Chairman Janet Yellen sanctioned the central bank’s easing policy.
Yellen speaking in New York said yesterday the she considers a “highly accommodative policy stance to be appropriate in present circumstances”. She endorsed the view that rates are likely to remain low through 2014 and also said that unemployment will fall “only gradually”. US stock markets snapped a 5-day losing streak as investors scaled back on ‘safe haven’ buying with the prospects of further easing by the Fed and ECB.
Overnight, Australian jobs data showed employers added much more workers than expected. The change in employment in March jumped to 44k versus expectations for 6.5k, up from -15.4k in the previous month. The data posted on Thursday eased prospects the Reserve Bank of Australia will cut interest rates in their next policy meeting and pushed the Aussie up to a 1-week high against the US dollar. The Australian jobs report also lifted risk appetite and Asian equity markets rose.
USD/JPY was up a quarter percent, back above 81.00 while EUR/JPY was up 0.40 percent, above its 200-day moving average by 106.01. EUR/USD rose to 1.3150 breaching its 100 DMA by 1.3143. AUD/USD surged above 1.0400 to 1.0404, above its 200 DMA and almost 1 percent higher.
Today, Italy will sell up to €5 billion in bonds maturing in 2015, 2020 and 2023. Investors will eye the sale to gauge market risk tolerance. A successful auction may relieve some pressure off Italian and Spanish yields which have been hovering around 2012 highs.
Good day,
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