Continues Depreciation Against

Markets eye whether BOE extends its Asset Purchase Program later today; Greece continues to struggle to form new gov't Economic Data (RU) Russia Central Bank (CBR) left Refinancing Rate unchanged at 8.00%, as expected (ID) Indonesia Central Bank left Reference Rate unchanged at 5.75%, as expected (FI) Finland Mar Industrial Production M/M: -1.5% v -0.2%e; Y/Y: -5.7% v -2.2%e (FR) Bank of France Apr Business Sentiment: 95 v 95e (FR) France Mar Industrial Production M/M: -0.9% v -0.6%e; Y/Y: -0.9% v -1.3%e (FR) France Mar Manufacturing Production M/M:+1.4% v -0.2%e; Y/Y: -0.3% v -2.8%e (FR) France Mar Central Govt. Balance: -€29.4B v -€24.2B prior (ES) Spain Mar House transactions Y/Y: -22.7% v -31.8% prior (CZ) Czech Apr CPI M/M: 0.0% v 0.1%e; Y/Y: 3.5% v 3.6%e (CZ) Czech Mar ...

Fundamental Analysis EUR 17-nation currency declined against most of its counterparts on Monday Asian trade as investors awaited Greek officials' response to international creditor requirements. The Euro dropped 0.6% against greenback to USD 1.3085 and lost 0.3% against Japanese Yen, reaching JPY 100.46. Currently EUR/USD is trading at USD 1.3070 and EUR/JPY is trading at JPY 100.30. USD Bank of America, JP Morgan Chase &Co and Well Fargo & Co was sued over use of property loan database by Eric Schneiderman, Attorney General of New York. According to Schneiderman, the lenders' use of database (MERS) led to inadequate foreclosures. Banks are accused of misleading home-owners, undermining foreclosure proceedings and creating uncertainty about proprietorship interests in real estate. ...

(Reuters) - The yuan closed up against the dollar on Monday after hitting an all-time high in intraday trading, guided by a stronger mid-point by the People's Bank of China, and looks set for an over-4-percent appreciation for 2011, traders said. The yuan is expected to remain stable or rise slightly in the last week of the year to close 2011 near 6.30 versus the dollar, in line with market expectations. The currency is likely to continue to appreciate next year as China continues to post big trade surpluses despite a slowdown in exports and amid pressure from the United States to let the yuan rise to balance bilateral trade, traders said. But the yuan's appreciation is likely to slow to around 3 percent in 2012, with much of the rise seen in the second half of next year as China may ...

(Reuters) - The yuan hit an all-time trading high against the dollar on Monday, guided by a stronger mid-point by the People's Bank of China, and looks set for an over-4-percent appreciation for 2011, traders said. The yuan is expected to remain stable or rise slightly in the last week of the year to close 2011 near 6.30 versus the dollar, in line with market expectations. The currency is likely to continue to appreciate next year as China continues to post big trade surpluses despite a slowdown in exports and amid pressure from the United States to let the yuan rise to balance bilateral trade, traders said. But the yuan's appreciation is likely to slow to around 3 percent in 2012, with much of the rise seen in the second half of next year as China may keep the yuan relatively stable in ...

Fundamental Analysis EUR On Tuesday Spanish central bank sold €4.94 bn ($6.51 bn) of 12 and 18-month notes, more than the Treasury had intended to attract. Central bank sold €3.44 bn 12 month notes at an average yield of 4.05%, compared to 5.02% in November. 18-month bonds created average borrowing cost at 4.2%, or 1 percentage point less than in November. USD US retail sales increased less than expected last month, according to official data. The indicator increased by 0.2% on a seasonally adjusted basis in November as compared to 0.6% previously expected, reported the U.S. Census Bureau. On the yearly basis, retail sales rose 6.7% last month after 7.5% increase in October. GBP Yearly UK CPI for November was in line with the expectations at the level of 4.8%, slightly lower than the ...

Weekly Economic and Financial Commentary : 01/10/2011 U.S. Review Still a Mixed Picture Most of this week’s economic reports that dealt with the consumer continued to flash warning signals. Consumer confidence remains weak, income growth is lagging and home sales remain dead in the water. Reports from the factory sector were decidedly more upbeat with orders for nondefense capital goods rising solidly, Boeing shipping its first 787 Dreamliner to Japan and the Chicago Purchasing Managers Index rising 3.9 points to a solid 60.4 in September. Weekly jobless claims also posted a surprisingly large drop in late September. Consumers Remain Cautious Going into the 4th Quarter Consumers clearly remain frustrated with the economic recovery. For the fifth month in a row, consumers’ ...

As this week's trading begins, there's little doubt that the debt crisis is the most pressing issue at hand. All eyes are currently watching what the European policymakers do with Greece's debt crisis. At the moment, the market seems rather pessimistic regarding the future of the European-Union and the euro is falling on all fronts. Economic News USD - Dollar Closes a Bullish Weekly Session as Risk-Aversion Soars The U.S. dollar rallied against most of its major currency counterparts during last week's trading session as concerns regarding the European-Union stability have turned investors to long the dollar as a safe-haven. During Monday's morning session the greenback continues to strengthen against the euro amid skepticism that Europe's latest efforts to contain its sovereign debt ...

Weekly Economic and Financial Commentary U.S. Review Housing Activity Still on the Road to Recovery * Better-than-expected first quarter earnings helped push the Dow Jones Industrial Average to its highest level in over three years. The upbeat earnings announcements overshadowed somewhat lackluster housing market data released during the week. * Sales of existing homes rose to a 5.1 million-unit pace in March, but distressed transactions accounted for 40 percent of overall sales. Investors accounted for 22 percent of sales and all-cash buyers rose to a record 35 percent. The increasing entrance of investors and all-cash buyers is a sign a bottom in home prices is near. Home Sweet Rental Home Better-than-expected first quarter earnings helped push the Dow Jones Industrial ...

FX Briefing Highlights * Yen continues to fall; EUR-USD on 15-month high * ECB raises refi rate to 1.25% * Portugal requests EU/IMF financial aid, Spanish credit risk premia keep falling * Surge in German industrial production and new orders in February Yen Under Pressure Investors are continuing to favour currencies which stand to benefit from robust global economic growth and monetary policy tightening. Like last week, the European currencies and the Aussie (AUD), the Kiwi (NZD) and the Loonie (CAD) strengthened significantly. The Japanese yen was the weakest currency by far: whereas EUR-USD rose by 1.8% to 1.44, EUR-JPY gained 3.7%. USD-JPY increased by almost 2% to over 85. The current movements in the forex market seem to be stemming from a reassessment of the yen. ...