US Morning Notes – USD mixed, EUR pressured by pessimism over Greek aid
Monday, April 26th, 2010FX Highlights
- The USD is trading mostly lower as the G-20 communiqué says the global recovery is better than anticipated and stock markets trade higher, EUR trades lower awaiting fresh news on the Greek debt as Greek credit spreads continue to widen to a new record high, some press reports suggest Germany may reject aid for Greece, investors await Merkel’s comments on Greece at 13:00 GMT, Canada’s Finance Minister Flaherty says the G-20 fears current Greek aid plan is insufficient, GBP trades higher supported by report of rising UK house prices, commodity currencies trade higher tracking firmer equities, higher price of gold and crude and Yuan revaluation speculation, Flaherty says China will likely revalue the Yuan, JPY trades lower pressured by a surge in the Nikkei, signs of improving global recovery competes with Greek debt worries for FX price direction
- Japan’s March corporate service price index rose by 0.5%,JPY lower
- German/Greek ten year government bond spread hits new record high of 663bps, The Times reports that the Greek meltdown is in danger of spreading, Harvard Professor Rogoff says that Greek rescue won’t be the last as focus shifts to Ireland and Spain, EUR lower
- UK Hometrack house prices rose 0.2% in April, rising house prices and higher UK inflation may encourage the BOE to hike rates before year-end, UK inflation rate rose by 3.4% March, GBP higher
- SNB’s Jordan says interest rates are right now, he is against excessive CHF rise, CHF lower
- ECRI growth gauge rose to 133.0 from 131.3 last week confirming the recovery is on track
- NABE says ¼ of US employers plan to begin hiring
- US equity markets set to open higher, European equities 1% higher, Nikkei closed 251 points higher
Upcoming Events
- US-Monday, no major US economic data is due for release today
- CAN-Monday, no major Canadian economic data is due for release today
Written by Easy-Forex
