Edges Up Ahead

Fundamental Analysis EUR Concern about Greece "is a big weight on the market and makes things uncertain" - Emmanuel Soupre, a fund manager at Neuflize Private Assets European stocks tumbled on Wednesday, after rising by the most in a month on Tuesday, on speculation Greece may exit the euro zone. USD "It’s very clear now that the housing market has turned a corner" - Richard DeKaser, deputy chief economist at Parthenon Group LLC Sales of new U.S. homes rose by more than expected in April, Commerce Department data showed on Wednesday. Purchases increased to an annual rate of 343,000, up by 3.3 per cent from a revised 332,000 in March. GBP " employment remains fragile and wage growth weak" - Ross Walker, chief U.K. economist at Royal Bank of Scotland Group U.K. retails sales declined by ...

The United Kingdom today continues to release more important fundamentals that only reassure the lingering hurdles ahead of policy makers` next decision. The second reading for the first quarter GDP is expected unrevised today as the economy contracts with slowing capital investment and exports that were hit by weak global growth. The ONS is expected to report the unrevised quarterly contraction of 0.2% in the first three months of the year and hold flat on the year as the BoE suffers to support growth. With the deterioration in the jobs market and high inflation Britons remain under pressure and so far policy makers. As the MPC said it, we are against a tough task, especially after they raised short term inflation expectations and revised lower growth estimates in the May inflation ...

The tension is gripping markets still with the uncertainty over the stability in Europe and expectations for a Greek euro exit. The common currency is still trading sharply lower as hope dims ahead of the informal EU summit in Brussels today, where previous hopes for any action evaporated as Germany confirmed that its stance did not drastically change! Investors are still pushing the euro lower amid fear that Greece might be forced to default and exit the euro after the inclusive May 06 elections confirmed the wide rejection to the deep austerity measures. The market still sees high risks that the June 17 election might bring anti-austerity parties into the lead that will opt against austerity and refuse the bailout terms as Syriza did and that will cost Greece its membership. Investors ...

Fundamental News Today’s highlights: · French GDP (QoQ) (FRA, 6:30 GMT) · German GDP (QoQ) (GER, 7:00 GMT) · French Non-Farm Payrolls (QoQ) (FRA, 7:45 GMT) · Trade Balance (GB, 9:30 GMT) · ZEW Economic Sentiment (EUR, 10:00 GMT) · German ZEW Economic Sentiment (GER, 10:00 GMT) · GDP (QoQ) (EUR, 10:00 GMT) · Core CPI (YoY) (U.S, 13:30 GMT) · Retail Sales (MoM) U.S, 13:30 GMT) · NY Empire State Manufacturing Index (U.S, 13:30 GMT) · TIC Net Long-Term Transactions (U.S., 14:00 GMT) Foreign direct investment in China fell for a sixth month in April, as faltering global growth and renewed turmoil in financial markets dented company spending in Asia’s biggest economy. Inbound investment ...

(Reuters) - London copper futures fell on Wednesday, extending losses after hitting two-week lows near $8,000 a metric ton (1.1023 tons) in the previous session, weighed down by worries about the impact of political turmoil in Greece and the euro zone debt crisis. Greece was struggling to form a government several days after elections, raising the risk that a hard-won bailout could be nullified. A raft of Chinese data this week is also expected to keep investors cautious although figures are likely to show the economy of the world's top copper user has bottomed out as inflation slows and output picks up. Three-month copper on the London Metal Exchange fell 0.3 percent to $8,073.75 a tonne by 0413 GMT, after falling 1 percent on Tuesday. The most-active August copper contract on the ...

Asian stocks dropped for the third consecutive session on China’s downbeat PMI manufacturing, worries over Europe’s debt crisis, the French elections, and the upcoming key policy-setting events this week. The MSCI Asia Pacific Index dropped 0.2% to 123.97 at 14:02 in Tokyo, although the IMF received more than $430 billion in pledges at the G20 meeting during the weekend in Washington. Sentiment was dampened by the contraction in China’s manufacturing sector in April, according to the HSBC flash PMI which dropped below 50 for another month although the reading showed a slight improvement from the previous month. Meanwhile, caution is building up ahead of key policy-setting events this week, where Bank of Japan will release its monetary policy decision while the Feds will hold a two days ...

FUNDAMENTAL OUTLOOK at 0800 GMT (EDT +0400) WORLD USDJPY consolidated overnight with FOMC and BoJ policy meetings drawing closer. Our analysts are not concerned about yesterday’s higher-than-expected initial jobless claims data. Instead, they point to distortions associated with Easter holidays and the cross over to a new quarter, which led to volatility and an upside bias. Economic data elsewhere also disappointed: existing home sales fell to an annual rate of 4.48 mn and April Philly Fed manufacturing index down to 8.5. Meanwhile, Bank of Japan remains under intense political pressure to ease again. Economy Minister Furukawa urged the BoJ to take steps to achieve its 1% price goal for the second day in a row. He explicitly pointed to the option of buying JGBs with longer maturities, a ...

Forex News and Events: We are clearly in a holiday trading mode, with the last stop being tomorrows NFP. We suspect FX will be range bound as trade wait. Yesterday in the US, the ADP survey indicated that private sector payroll employment increased by 209k vs. 206k exp. in March. This number is consistent without the recent improvements in the labor market and suggests a NFP read above 200k. On the other hand, the ISM non manufacturing index came in below forecasts at 56.0 vs. 57.3 exp. The slight downtick shouldn't be of real concern since the drop only revised abnormally large increases in the past few months. Still supporting the good Friday NFP was the underlying employment index, which rose to 56.7 from 55.7. While the USD continues to benefit from relative growth expectations, we ...

hope gold goes higher and higher