BBH CurrencyView
The US dollar is broadly higher against the major and emerging market currencies to start what promises to be an important week, with several parliaments due to vote on Greek 2.0, the second and possibly final LTRO, and PMI readings. Eurogroup head Juncker’s admission that a third package for Greece cannot be ruled out may also be taking a toll on sentiment. The main exception to the generalization is the Japanese yen, which has seen initial losses reverse amid talk of Japanese exporter offers. Global equities are mostly lower, though the Shanghai Composite bucked the move to close at new 3-month highs, building on last week’s 3.5% gain amid expectations of further easing of monetary policies. The MSCI Asia-Pacific Index fell 0.8% and the Dow Jones Stoxx 600 is off about 1% near midday in London, with technology, health care and financials leading the way lower. Telecoms is the only sector ahead today. Italian and German bill auctions were well received, while the Belgian supply was absorbed without much fanfare. The decline in equities has encouraged a bid tone in most bond markets. Of note, Euribor has eased for the 48th consecutive session and is slipping below the ECB’s 1% benchmark floor for the first time since January 2011.
The euro is trading inside last Friday’s range. There was no follow through on the break of $1.3400. Look for a bounce back toward $1.3450 in the North America today. The dollar rose through JPY81.50 in early Asia only to meet a wall of sellers, thought to be Japanese exporters, but it took early European trading to break the JPY81.00 level. Bidders came back near JPY80.30. The JPY81.00 level now offers immediate resistance. Sterling barely took out Friday’s $1.58 high, but there was no follow through and it is in a narrow range, consolidating its recent advance.
Read more: http://www.creditwritedowns.com/2012/02/five-key-developments-including-vote-on-greek-deal-2-0.html
The US dollar is broadly higher against the major and emerging market currencies to start what promises to be an important week, with several parliaments due to vote on Greek 2.0, the second and possibly final LTRO, and PMI readings. Eurogroup head Juncker’s admission that a third package for Greece cannot be ruled out may also be taking a toll on sentiment. The main exception to the generalization is the Japanese yen, which has seen initial losses reverse amid talk of Japanese exporter offers. Global equities are mostly lower, though the Shanghai Composite bucked the move to close at new 3-month highs, building on last week’s 3.5% gain amid expectations of further easing of monetary policies. The MSCI Asia-Pacific Index fell 0.8% and the Dow Jones Stoxx 600 is off about 1% near midday in London, with technology, health care and financials leading the way lower. Telecoms is the only sector ahead today. Italian and German bill auctions were well received, while the Belgian supply was absorbed without much fanfare. The decline in equities has encouraged a bid tone in most bond markets. Of note, Euribor has eased for the 48th consecutive session and is slipping below the ECB’s 1% benchmark floor for the first time since January 2011.
The euro is trading inside last Friday’s range. There was no follow through on the break of $1.3400. Look for a bounce back toward $1.3450 in the North America today. The dollar rose through JPY81.50 in early Asia only to meet a wall of sellers, thought to be Japanese exporters, but it took early European trading to break the JPY81.00 level. Bidders came back near JPY80.30. The JPY81.00 level now offers immediate resistance. Sterling barely took out Friday’s $1.58 high, but there was no follow through and it is in a narrow range, consolidating its recent advance.
Read more: http://www.creditwritedowns.com/2012/02/five-key-developments-including-vote-on-greek-deal-2-0.html
No comments:
Post a Comment