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, 18 Apr 2012 (Updated 09:30:50 CET)Risk Sentiment improves on the back of earnings and easing EZ concerns
Asia: Asian Equities back into positive territory
BoC: BoC minutes sound more hawkish – CB pointing towards an eventual tightening
Japan: BoJ may be raising its inflation forecast USD/JPY moves higher
Rates in Asia and Indices:
EURUSD: 1.3109 - 1.3141.
USDCHF: 0.9144 - 0.9165.
GBPUSD: 1.5917 - 1.5942.
EURJPY: 106.11 - 106.89.
USDJPY: 80.83- 81.43.
DowJones: 13'115.54 +1.5%
NASDAQ: 3’042.82 +1.82%
S & P 500: 1'390.78 +1.55%
Nikkei: 9'667.26 +2.14%
Shanghai: 2'376.77 +1.79%
Gold: $ 1'654.30
Crude Oil: $ 104.48
Better earnings reports from the US and quelling concerns over the euro zone issues gave US equity indices some breathing space yesterday evening; the Dow reclaimed the key 13000 levels and similarly the Nasdaq and the S&P were also in positive territory. Asian equities as well reclaimed positive territory.
The yield for Spanish 10-yr debt also eased lower to around 5.8% from highs of 6.0188% seen last Monday – ahead of a Spanish debt auction tomorrow. Another 12 and 18-month auction concluded yesterday attracted good demand despite average yields rose.
In the Forex markets the commodity bloc currencies see some support flowing back. The US Dollar as well is in positive territory with much of the gains stemming from against the Japanese Yen. The USD/JPY has attained highs of 81.43 so far this morning after lows of 80.33 yesterday. The euro remains close to flat overall against the majors – the EUR/USD has traded in the range of 1.3095 – 1.3141 and it looks likely the currency pair could be aspiring for 1.32 region in the coming days before correcting lower.
The CAD attracts the largest support so far this morning; the BoC yesterday left policy rates unchanged but sounded more hawkish and set the stage for an eventual withdrawing of its current policy stimulus. The Japanese yen weakened as a Japanese newspaper reported that the BoJ would probably be rising its inflation forecast and thus pave the way for additional easing.
Later on today the BoE minutes will gain focus as investors watch out for more direction with regards to QE.
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