It’s month end, quarter end, half year end and any other “end” I’ve forgotten. That is going to potentially lead to some choppy moves today as everyone does their last minute biz to balance up the books.
We’ve also got the added interest of the latest Eurozone inflation figures which at these low levels will cause some reaction if they slide further under 0.5% and towards the dreaded deflation line. Expectations are for an unchanged number at 0.5% y/y with the core also expected in unchanged at 0.7% y/y. It’s likely to be lively either side of the numbers expected but probably more so to the EUR/USD upside if we get a jump in inflation. Anything outside of a 0.2% difference either way is likely to see the euro move quite sharply.
At the moment EUR/GBP is pushing through 0.8000 to 0.8018 and cable has slid to 1.7013 and that could be related to the pound of flesh that the UK gives to Europe every month, that is transacted by the Bundesbank.
USD/JPY is pushing towards offers at 101.45 after it’s little dipette to 101.24 earlier.
European stocks area mixed bag in early trading;
- FTSE +13 pts at 6771
- Cac -3 pts at 4436
- Dax +50 pts at 9865
- Ibex -29 pts 10959
- FTSE Mib +76 pts at 21395
European bonds are virtually flat on the day so far.
