US Morning Notes – USD mixed, GBP higher as UK exports surge
Tuesday, April 13th, 2010FX Highlights
- The USD is trading mixed with GBP supported by report of a narrowing of the UK trade deficit as exports rise 9.5%, the EUR is trading flat supported by good demand for today’s Greek T-bill auction, EUR gains were limited by ongoing concern about the Greek rescue package and profit taking after the Greek auction, AUD trades higher supported by report that NAB business conditions rose to their highest level since January 2008, JPY edged higher supported by report of a modest rise in Japan’s corporate good prices and speculation the BOJ will revise up its CPI forecast
- Focus turns to today’s release of US import prices and trade balance and Canada’s trade balance
- UK exports rose 9.5% in February, the February trade balance narrows to -6.17bln from -8.06bln last month, March BRC retail sales rose by 4.4% and RICS house price balance declined to its lowest level since July of 2009,GBP higher
- Japan’s March domestic corporate prices rose by 0.2%, Nikkei reports that the BOJ may raise its CPI forecast for next fiscal year in its April 30th economic outlook report, a panel for Japan’s ruling party said Japan should try to keep USD/JPY around 120, JPY higher as stocks slide
- Australia’s March NAB business conditions index +5 points +13,AUD higher
- Today’s Greek T-bill auction was oversubscribed, the reception for the Greek auction is seen as an endorsement of yesterday’s announcement an IMF/EU rescue package for Greece, EUR steady
- US posted a 65.4bln deficit for March, much lower than 191.1bln deficit last March, the smaller deficit reflects an increase in tax receipts and lower costs for the TARP bailout plan
- NBER says it premature to declare the end date of the US recession
- NFIB small business confidence index falls 1.2 points to 86.8
- US equity markets set to open lower, European equities 0.25% lower, Nikkei closed 90 points lower
Upcoming Events
- US- Tuesday, March import prices will be released expected at 0.1% compared to 0.9% along with February trade balance expected at -38.5bln compared to -37.3bln last month
- CAN-Tuesday, February trade balance will be released expected at 0.6bln compared to 0.799bln last month
Written by Easy-Forex
