US Morning Notes – USD lower, Greek default fears recede, UK PPI rises
Friday, April 9th, 2010FX Highlights
- The USD is trading lower as Greek default fears have receded in reaction to reassuring statements from EU officials that Greece will get international aid if needed, the German finance minister says that the EU and IMF would rescue Greece if needed, German officials express confidence that Greece can refinance its debt, EUR trades higher in reaction to a statement from ECB President Trichet that Greece is not in need of rescue, Greece reports better than expected budget data, GBP trades higher in reaction to report of higher than expected UK PPI data as input prices surge and the latest election polls suggest the Conservative party’s lead is widening, CAD pressured by weaker than expected Canadian jobs report, JPY is trading lower pressured by improving risk sentiment as equity markets rise in reaction to Thursday’s report of improving March sales for US retailers and in reaction to a statement from Japan’s finance minister calling for more action to end deflation, Asian equities traded at a 22 month high
- Focus turns to today’s release of US wholesale inventories and sales and Canada’s unemployment
- US retailers posted strong sales in March signaling improving consumer optimism
- Canada’s unemployment growth at 17.9k, unemployment rate at 8.2%,CAD lower
- Japan’s Finance Minister Kan says that the economic outlook in Japan is improving, recent weaker JPY is good for Japanese business and more must be done to end deflation, JPY lower
- UK March producer prices rose by 0.9%, input prices rise by 3.6%, UK election polls indicate that the conservative party has a 9 point lead over Labor, GBP higher
- German February trade surplus widened to 12.6bln reflecting a 5.1% rise in exports, EUR higher
- Australia’s March PCI -4.1pts to 48.7, AUD higher
- Reuters reports that China may soon raise interest rates and revalue the Yuan in October
- US mortgage rates hit an 8 month high of 5.21% as the economy improves, bond yields rise and the Fed ends its MBS purchases
- US equity markets set to open higher, European equities 1% higher, Nikkei closed 36 points higher
Upcoming Events
- US- Friday, February wholesale inventories and sales with be released expected at 0.4% and 0.5% respectively
- CAN-Friday, March unemployment rate will be released expected unchanged at 8.2%, with employment growth at 25k compared to 29.9k last month( already released)
Written by Easy-Forex
