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, 15 Feb 2012 (Updated 09:13:38 CET)China pledges help to solve Europe’s debt crisis
What’s new:
Forex: Euro rises after Chinese pledge to help resolve European crisis
Forex: EUR/JPY hits 2-month high
Global Markets: Asian shares soar on hopes of Greek deal as China vows to participate more
China: Central Bank Governor says China will have bigger role in solving Europe’s debt crisis
Euro zone: Greece expected to deliver letter of commitment to lenders, satisfying key bailout condition
United States: President Obama pushes Chinese heir Xi on trade imbalances, human rights and Syria
Forex rates in Asia and Indices:
EUR/USD: 1.3191 - 1.3108
USD/CHF: 0.9210 – 0.9156
GBP/USD: 1.5736 - 1.5674
USD/JPY: 78.66 – 78.35
EUR/CHF: 1.2081 – 1.2070
EUR/JPY: 103.50 – 102.87
DowJones: 12'878.28 +0.03%
NASDAQ: 2'931.83 +0.01%
S & P 500: 1'350.50 -0.09%
Nikkei: 9’260.34 +2.30%
Shanghai: 2’366.70 +0.94%
Gold: $ 1’729.00
Crude Oil: $ 101.67
Comments:
The euro was lifted on Wednesday after the People’s Bank of China governor Zhou Xiaochuan pledged China’s commitment to having a more active role in solving Europe’s debt crisis. He said China would continue to invest in European bonds via both the IMF and EFSF. He also expressed his desire to see the euro becoming a more important reserve currency. Risk sentiment rose after the governor’s comments, and was also lifted by hopes that Greece will finally secure a deal as they are expected to send written commitments today to its international lenders.
Yesterday, a Eurogroup meeting was cancelled and replaced by a conference call as political pledges from Greek leaders were not received. The euro came under pressure yesterday after Eurogroup Chairman Juncker confirmed the news of the cancellation of the meeting and said further technical work with the Troika was needed in “a number of areas”. EUR/USD fell to 1.3080, from a high of 1.3216 as fears grew on whether Greece will be able to secure a second bailout.
The single currency paired back its losses early on Wednesday and risk appetite was buoyed across the board. EUR/USD was up more than a quarter percent and rose to 1.3191 while EUR/JPY surged to a two-month high at 103.50. The Australian and New Zealand dollars also benefitted from the comments from China, as higher-yielding assets were broadly in demand. The Aussie rose almost half a percent against the dollar and the yen while the kiwi gained more than 0.60 percent versus the greenback and yen.
USD/JPY continued its rise overnight rising to a fresh year’s high after it soared above its 200-day moving average yesterday, for the first time in ten months.
Good day,
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