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 Tuesday, 24 Apr 2012 (Updated 09:21:49 CET)Yen lifted by risk aversion over European political turmoil
Forex: Yen boosted by uncertainty from European elections; Aussie hurt by CPI data
Global Markets: Asian shares slip on political turmoil in euro zone
Australia: Consumer prices fall in first quarter, Aussie falls to 2-week low
Euro zone: Dutch government collapses over budget cuts disagreements
Forex rates in Asia and Indices:
Low High Change
EUR/USD 1.3145 - 1.3174 0.12 %
USD/CHF 0.9121 - 0.9143 0.12 %
GBP/USD 1.611 - 1.6134 -0.04 %
USD/JPY 80.86 - 81.20 0.20 %
EUR/CHF 1.2015 - 1.2020 0.01 %
EUR/JPY 106.32 - 106.82 0.08 %
Dow Jones 12845.58 - 13028.2 -0.78 %
Nasdaq 2629.7 - 2657.36 -0.84 %
S&P 500 1358.79 - 1378.53 -0.84 %
Nikkei 225 9423.3 - 9510.7 -0.89 %
Shanghai 2350.399 - 2415.75 -0.84 %
Gold spot 1634.06 - 1639.01 -0.19 %
Oil Future 102.79 - 103.28 -0.08 %
The Japanese yen was up against all of its major rivals on Tuesday, as political turmoil in France and the Netherlands are raising concerns that uncertainty will slow down the euro zone’s efforts to push through with planned budget cuts. Riskier currencies were on the defensive and Asian stock markets were lower as risk appetite came under pressure.
The Australian dollar fell to a 2-week low against the dollar on Tuesday, hurt by an inflation report which showed consumer prices were lower than expected in the first quarter. The Aussie was half a percent lower against its major peers, as its headline inflation figure dropped sharply to 1.6 percent y/y versus a forecast for 2.2 percent. AUD/USD fell to 1.0247 extending its drop from yesterday, where it closed below its 200-day moving average by 1.0374. With today’s CPI data, and also yesterday’s downbeat PPI data, expectations for a rate cut in the next policy meeting by the Reserve Bank of Australia is now highly anticipated and some are even expecting further rate cuts were possible.
The euro pulled back some of the losses suffered yesterday against the greenback but failed to make much headway on increasing political uncertainty. EUR/USD fell to 1.3105 yesterday amid concern over the French election, the Dutch Prime minister’s resignation and slumping euro zone PMIs. The pair is up slightly today, by 0.2 percent, but Moody’s comments that the Netherlands is facing a “credit negative” event due to the collapse of its government kept gains in check. A key bond sale from the Netherlands is scheduled today, which will gauge the confidence of financial markets in one of the euro zone's most stable nations.
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