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, 16 Feb 2012 (Updated 09:25:26 CET)Greek bailout talks stall, euro drops to 3-week low
What’s new:
Forex: Euro falls to 3-week low on worries over Greek bailout
Forex: USD/JPY to 3-1/2 month high
Global Markets: Shares fall as stall in Greek bailout deal cooled risk appetite
Australia: Economy adds 46’300 new jobs, unemployment rate drops to 5.1 percent
Euro zone: Doubts emerge over Greece, decision on bailout pushed to next week
Euro zone: France and Spain scheduled to auction bonds today
United States: FOMC minutes show Fed divided over need for more stimulus
Forex rates in Asia and Indices:
EUR/USD: 1.3067 - 1.2994
USD/CHF: 0.9284 – 0.9236
GBP/USD: 1.5700 - 1.5660
USD/JPY: 78.73 – 78.36
EUR/CHF: 1.2071 – 1.2062
EUR/JPY: 102.51 – 101.93
DowJones: 12'870.95 -0.76%
NASDAQ: 2'915.83 -0.55%
S & P 500: 1'343.23 -0.54%
Nikkei: 9’238.10 -0.24%
Shanghai: 2’356.86 -0.42%
Gold: $ 1’721.20
Crude Oil: $ 101.59
Comments:
Negotiations over Greece’s bailout took an unexpected blow on Wednesday, as a decision on their next aid package was ‘delayed’ again to next week. Doubts emerged over Greece’s ability to deliver on its promises, despite policymakers meeting demands set by international lenders. Reports surfaced that several EU sources said on Wednesday, that euro zone finance officials were exploring the possibility of delaying the second bailout for Greece until after the country holds elections in April, whilst still ensuring they manage to avoid default.
The euro was under pressure as talks of the new delay emerged as forex investors grew uncertain on whether Athens will be able to secure its aid package. Concern fuelled as Greece is scheduled to repay debts amounting to €14.5 billion on March 20th, and will not be able to do so without financial aid. Greece may still go ahead and clinch a debt swap agreement with private sector bond holders, possibly allowing them to avoid missing the repayment deadline. In the meantime Greek officials said that they had met all conditions set by the European Union and the International Monetary Fund to seal the deal.
EUR/USD fell to three-week low overnight, to 1.2994, breaking lower than its 50-day moving average at 1.3024.
Overnight, from Australia, a jobs report showed the Australian economy added 46’300 new jobs against expectations for 10’000, while the unemployment rate fell to 5.1 percent from 5.2 percent. Initially the Aussie jumped across the board but paired its gains as risk sentiment dampened. AUD/USD is down 0.20 percent to 1.0678 after hitting 1.0738 following the jobs report, and is now sitting just above its 20-day moving average at 1.0669.
Minutes from the FOMC meeting in January showed that “a few” policymakers were still clinging to the belief that more QE will be needed this year. However the Fed is seen divided on the need for more stimulus as signs are emerging that the economy is gaining traction. USD/JPY hit a three and a half month high overnight, to 78.73.
Good day,
RTFX Ltd (“RTFX”) is licensed to conduct investment services business by the Malta Financial Services Authority. This information does not constitute an offer or solicitation and is provided for information purposes only. This information shall not be deemed to constitute advice and should not be relied on as such to enter into a transaction or for any investment decision. Any opinions expressed in this document represent the views of RTFX at the time of preparation. They are thus subject to change without notice. RTFX believes that the information contained herein is accurate as at the date of publication. However, no warranty of accuracy is given by RTFX and no liability in respect of any errors or omissions, including any third party liability, are accepted by RTFX or any director, officer or employee.
Archives - Past publications
Previous published content may be viewed on our archives section
Archives
