US Morning Notes – USD mixed, G-7 to discuss the Greek debt crisis
Friday, May 7th, 2010FX Highlights
- The USD is trading mixed to start the session Friday gaining versus the JPY, GBP and AUD and losing ground to the EUR and CAD, EUR trades higher as Germany approves of aid for Greece, the G7 is expected to discuss the Greek debt crisis Friday and to take action to try and stabilize markets, EUR/JPY surged by 3%, GBP trades lower pressured by report that the UK election has resulted in a hung parliament, CAD trades higher as Canada reports a record monthly surge in employment growth, AUD trades lower as the RBA Monetary Policy Report confirms that interest rates are near average level, JPY trades lower pressured by report that the BOJ is pumping liquidity into the markets
- Focus turns to today’s release of US unemployment and nonfarm payrolls, consumer credit and Canadian unemployment
- BOJ adds ¥2trln into the banking system, JPY lower
- Canada’s unemployment rate falls to 8.1% from 8.2%, employment growth rose by 108.7k, a rise of 25k was expected, CAD higher
- RBA Monetary Policy Report says that lending rates are now near average levels, inflation moderating less than previously thought, unchanged forecast of 3.25% for 2010 GDP, AUD lower
- Reuters reports that UK election results in a hung parliament with conservatives gaining most seats but short of majority, UK April output prices rose by 1.4%, input prices rose by 0.6%, April house prices declined by 0.1%,GBP lower
- Swiss March retail sales rose by 4.5% and April unemployment rate declined to 4% from 4.2% last month, CHF higher
- Stocks tumbled Thursday with biggest one day intraday point drop in history, bank stocks were sold as policy makers talk reform and rumors circulated that European banks have stopped lending, CNBC says a trading error added to the stock market drop, VIX up 60%
- Canada’s Finance Minister Flaherty says Europe must mange risk, Canadian economy strong
- US fixed mortgage rates declined to a six week low with 30 year rates near 5%
- Three month Libor rates rose to the highest level since last August
- US equity markets set to open higher, European equities 0.5% lower, Nikkei closed 331points lower
Upcoming Events
- US-Friday, April nonfarm payrolls will be released expected to rise by 190k compared to 162k last month and the unemployment rate is expected unchanged at 9.7% along with March consumer credit expected at -3.8bln compared to -11.5bln last month
- CAN-Friday, April unemployment will be released expected unchanged at 8.2% along with employment growth expected at 24k compared to 17.9 k last month,( already released)
Written by Easy-Forex
