Noteworthy News:
- Ukraine Economy posing big problems for Europe.
- Swiss Trade Balance better than expected 2.03B Vs 0.62B.
- An article that is somewhat critical of PM Gordon Brown.
- UK PSNB worse than expected.
- Swiss ZEW at -55.7.
- Economic Data Release Table.
Foreign Exchange Markets:
- The positive end to the day in the Asian equity markets seems to have flowed through to the currency markets as a renewed appetite for the risk currencies emerged in London morning trading. The day began tentatively with the EUR, GBP and AUD all looking like heading higher against the USD and it wasnt long before the EUR/USD broke above 1.2600, Cable above 1.4300 and the AUD/USD above 0.6440, and its pretty much been a steady grind higher with the occasional dip ever since.
- Good UK corporate buying in the 1.4370/00 region helped the Cable’s cause, where as the EUR/USD was bought by US names after a US house released a buy call on the EUR/USD.
- USD/JPY has done little, drifting up to 93.85 before heading lower. Expect to see a retest of 92.50.
- A good chance the AUD/USD has seen its lows and is now headed back to 0.6850.
- The EUR/GBP has headed lower as expected with EUR/CHF being the star tonight, falling just short of my targetted 1.5000 level.
- Ranges: EUR/USD 1.2524/1.2686, USD/JPY 93.27/93.85, GBPUSD 1.4204/1.4417, AUD/USD 0.6358/0.6494, EUR/CHF 1.4749/1.4947, EUR/GBP 0.8770/0.8843, EUR/JPY 117.27/118.92.
Equity Markets:
- Asian equity markets finish in the black.
- European equity markets all began that way but have since dipped with London -7.5 pts, and Paris -5.25 pts slightly down and Frankfurt +12.4 pts slightly up. Not a great deal going on there, just good to see them not sharply lower.
- US Futures point towards a higher opening. Another positive sign for the risk currency plays.
- Nestle helps European equities higher.
