US Morning Notes – USD higher, EUR drops as Greek bond spreads widen
Thursday, April 15th, 2010FX Highlights
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The USD is trading higher as the US economic recovery broadens and Greek debt worries re-emerge, EUR is trading sharply lower pressured by a plunge in Greek bonds, GBP outperforms supported by the latest UK election polls which show the Conservatives have expanded their lead over Labor, GBP gains were limited by report of a sharp fall in UK consumer confidence, commodity currencies trade lower despite strong economic data from China and Yuan revaluation speculation, commodity currencies were pressured by speculation the strong Chinese data will encourage China to tighten monetary policy, JPY is trading higher supported by gains in cross trade to the EUR and Yuan revaluation speculation
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Focus turns to today’s release of US initial jobless claims, industrial production, capacity use, Philly Fed and NAHB
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China’s Q1 GDP rose by 11.9%, March CPI rose by 2.4%, retail sales rose by 18% and industrial production rose by 18.1%, acceleration in China’s growth may encourage China to revalue the Yuan and raise interest rates
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Japan’s February industrial production revised up to -0.6% from -0.9%, Reuters April tankan manufacturing index rises to its highest level since April 2008,JPY higher
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UK March Nationwide consumer confidence falls sharply to 72 from 81 in February, UK Telegraph poll says the Conservative party has a comfortable lead ahead of the May 6th election, GBP mixed
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Australia’s April Westpac inflation expectations rise the highest level since October 2008,AUD lower
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Fed’s Beige books reports somewhat faster growth, the White House says the stock rally is a sign of growth and that President Obama’s measures to boost growth are working
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The number of homeowners behind in their mortgages fell in Q1 for the fist time sine 2006, President Obama’s foreclosure prevention plan has helped 228k delinquent borrows keep their homes, Realty Trac reports that foreclosures rose 19% in March
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CLS bank says monthly foreign exchange volumes hit a record in March reflecting growth in electronic trading
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US equity markets set to open lower, European equities mixed, Nikkei closed 69 points higher
Upcoming Events
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US- Thursday, initial jobless claims for week ending 04/10 will be released expected at 440k compared to 460k last week along with March industrial production expected at 0.7% compared to 0.1% last month , March capacity use expected at 73.3 compared to 72.7 last month, April Philly Fed expected at 20 compared to 18.9 in March and April NAHB expected at 16 compared to 15 last month
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CAN–Thursday, no major Canadian economic data is due for release today
Written by Easy-Forex
