US Morning Notes – USD higher, Greece seeks talks on the rescue plan
Friday, April 16th, 2010FX Highlights
- The USD is trading higher supported worries over the Greek fiscal crisis as Greece seeks talks on emergency aid and ECB President Trichet says Greek bank troubles could worsen, USD is also supported by a modest uptick in risk aversion as China takes measures to curb growth and signals that Yuan revaluation of is coming, GBP is trading mixed to lower pressured by UK election uncertainty as support for the Liberal Democratic Party has surged in the polls increasing the risk of a hung parliament, commodity currencies traded lower in reaction to the reduction of risk positions, tightening in China and weaker commodity prices with downside limited by strong housing data from New Zealand and Yuan revaluation speculation , JPY is trading higher despite threat of intervention supported by Greek jitters
- Focus turns to today’s release of US housing starts, building permits, Michigan consumer sentiment and Canada’s manufacturing shipments
- Greece is expected to seek EU IMF aid, some EU states may try to block aid for Greece, Greece may not issue USD denominated bonds, EU March inflation rose by 0.9%, February trade balance swung to a 2.6 bln surplus from a -9bln deficit last month, EUR lower
- China raised down payment requirements and rates on some mortgages to cool off the housing market as property prices in major cities rose at the fastest pace in five years, Chinese central bank adviser says that China has come to consensus on adjusting its exchange rate gradually, not bowing to US pressure
- UK election polls indicate that the Liberal Democratic support surged to 35% from 21%,support for the Conservative party and the Labor party has declined, GBP mixed to lower
- Swiss producer import prices rose by 0.5%,CHF lower
- Japan’s ruling party said that monetary easing and currency invention are needed to weaken the JPY and combat deflation, JPY higher
- Canada’s existing home sales rose by 1.4% in March and new listings rose by 20%,CAD higher
- The Feds Yellen says the economy is on the right track but the recovery remains fragile, Fed will have to tighten at some point
- US equity markets set to open lower, European equities mixed, Nikkei closed 172 points lower
Upcoming Events
- US- Friday, March housing starts will be released expected at 610k compared to 575k last month along with March building permits expected at 630k compared to 612k last month and April preliminary Michigan consumer sentiment expected at 75 compared to 73.6 in March
- CAN-Friday, February manufacturing shipments will be released expected at 0.6% compared to 2.4% last month
Written by Easy-Forex
