US Morning Notes – USD higher, UK service PMI disappoints, revised EU GDP
Wednesday, April 7th, 2010FX Highlights
- The USD is trading higher with EUR pressured by a downward revision in EU GDP and in reaction to rising cost to finance Greek debt, GBP pressured by disappointing UK service sector PMI, commodity currencies pressured by weaker crude and OECD report which says G-7 growth will slow in the short term, JPY drifted lower as the BOJ holds rate policy steady and left its economic assessment unchanged
- Focus turns to today’s release of US consumer credit and Canada’s building permits and Ivey PMI
- BOJ holds monetary policy steady and it economic assessment unchanged, JPY lower
- Australia’s March new vehicle sales rose by 15.2%,March PSI +0.1,RBA watcher McCrann says RBA will be in no hurry to hike rates further, AUD lower
- EU Q4 GDP revised down 0.1% to flat, February PPI 0.1% , March services PMI 54.1 compared to 51.8 last month, EUR lower
- UK March BRC index rose by1.2%y/y,March service PMI 56.5 compared to 58.4 last month, GBP lower
- Financial Times reports that China is preparing for a change in Yuan policy and could soon widen the trading band for its currency, World Bank raised it China GDP forecast to 9.5% from 8.7%
- Minutes for the March FOMC state that some board members see the risk of premature tightening outweighed the risks associated with a delay in tightening, economic activity is somewhat mixed with the recovery moderately paced, FOMC is concerned about scarcity of job openings and long-term unemployed, recovery seen as a unsustainable without pickup in jobs, despite Q1 pick up consumer spending still seems constrained, Hoenig repeats his call for change in extended period language too low level for some time, extended period language does not limit ability to tighten policy promptly, extended period could last longer if the economy worsens or inflation declines
- Fed’s Kocherlakota says that US recovery looks better than EU and Japan but employment growth is slower
- Pew analysis says 23% or 3mln unemployed Americans have been out of a job for at least a year
- US mortgage applications fell in week ending April 2nd
- US equity markets set to open lower, European equities 0.25% lower, Nikkei closed 10 points higher
Upcoming Events
- US- Wednesday, February consumer sentiment will be released expected at 0.5bln compared to 5bln last month
- CAN-Wednesday, February building permits will be released expected at 1.9% compared to -4.9% last month along with March Ivey PMI expected at 57 compared to 51.9 last month
Written by Easy-Forex
