Markets Expecting An Announcement

Fundamental Analysis EUR German bunds rose on worries that European leaders will struggle to resolve the euro zone debt crisis during tonight's European summit. David Schnautz of Commerzbank AG in London thinks that Europe is unlikely to solve key topics and will probably disappoint the market. The 5-year bund lost 5 bp to 0.47 percent at 10:49 GMT after tumbling to 0.461 percent, the lowest since 1990, when Bloomberg began gathering data. USD Crude oil futures declined in Asian session on Wednesday as Iran is ready to invite nuclear inspectors, the move that may ease oil import sanctions. Light, sweet crude oil futures for July delivery traded at 91.27 US Dollars per barrel, retreating by 0.63% from the last session's high of 91.72 US Dollars per barrel. GBP Today the minutes of the ...

(Reuters) - World shares fell and Germany sold two-year bonds paying virtually no interest on Wednesday as investors shunned riskier assets, doubting that any new measures to tackle the euro zone debt crisis would emerge from a European leaders summit. Concerns the latest EU summit could be a failure sent the euro to a 21-month low, put an end to a rally in European equities, and sent yields on Spanish and Italian bonds higher. But investors bid strongly at an auction of safe-haven two-year German government bonds resulting in a yield of just 0.07 percent, while the dollar, measured against other major currencies .DXY hit a high not seen since September 2010. The leaders are expected to discuss boosting growth at their meeting later on Wednesday and the idea of a joint euro zone bond. ...

Economic Data (JP) JAPAN APR OFFICIAL RESERVE ASSETS: $1.29T V $1.28T PRIOR (first increase in 3-months) (UK) UK APR BRC SALES LIKE-FOR-LIKE Y/Y: -3.3% V 0.6%E (KR) SOUTH KOREA APR BANK LENDING TO HOUSEHOLDS (KRW): 453.6T V 452.3T PRIOR (KR) SOUTH KOREA MAR MONEY SUPPLY L Y/Y: 1.8% V 0.3% PRIOR; M2 Y/Y: 0.0% V 0.7% PRIOR (CO) Colombia Apr Producer Price Index M/M: +0.2% v -0.2% prior; Y/Y: +1.6% v +1.6% prior Markets Snapshot (as of 04:30GMT) Nikkei225 -1.6% S&P/ASX -1.1% Kospi -1.0% Taiwan Taiex -0.8% Singapore Straits Times Index -0.7% Shanghai Composite -1.3% Hang Seng -1.0% Jun S&P Futures -0.1% at 1,352 June gold -0.8% at $1,591/oz June Crude -0.5% at $96.53 Overview/Top Headlines Concerns over Greece backing out of its bailout package continue to weigh on the ...

Forex News and Events: UK GDP release today showed that the nation is technically in recession. UK Q1 GDP -0.2% q/q vs 0.1% exp, -0.3% prior; 0.0% y/y vs +0.3% exp, +0.5% prior read. The GBP took a hit on the news falling to 1.6082, but the generally feeling it’s the leading indicators have turned up significantly suggesting the worse is behind the UK. The highlight of the day will be tonights FOMC. The FOMC is expected to keep rates unchanged at 0.25% and maintain the current policy stance when it meets on Thursday. Although we do expect Bernanke to likely signal the end of operation twist at the scheduled end of June timing. We see little evidence of disinflation, but there is a portion of the FOMC which remains mindful of factors that might play out after energy price gains have ...

Spain's bond auction demand was overly sufficient but yields were mixed Economic Data (RU) Russia Gold & Forex Reserve w/e Apr 13th: $518.8B v $516.7B prior (DK) Denmark Apr Consumer Confidence: +0.6 v +1.5e (HU) Hungary Feb Avg Gross Wages Y/Y: 6.9% v 6.0%e (NL) Netherlands Mar Unemployment Rate: 5.9% v 5.9% prior (PH) Philippines Mar Balance of Payments: -$209.0M v +$588M prior (GR) Greece Feb Current Account: -€1.1B v -€1.5B prior (IT) Italy Feb Industrial Orders M/M: -2.5% v -1.1%e; Y/Y: -13.2% v -6.2%e (IT) Italy Feb Industrial Sales M/M: +2.3% v -4.9% prior; Y/Y: -1.5% v -4.4% prior (PH) Philippines Central Bank left its Overnight Borrowing Rate unchanged at 4.00%; as expected (HK) Hong Kong Mar Unemployment Rate: 3.4% v 3.5%e Fixed Income (ES) Spain Debt Agency (Tesoro) sold ...

FUNDAMENTAL OUTLOOK at 0800 GMT (EDT +0400) WORLD Subdued trading in Asia meant EURUSD was confined to a 25-pip range. The price action in USDJPY and AUDUSD was somewhat more lively, but flows were light across the board in pre-holiday trade. Newswires would have been mostly silent were it not for Japan‘s Finance Minister Azumi defending his intervention policy. He said that even if there were differences of opinion with the US on yen intervention, this would not affect Japan‘s stance. Asian equity markets were mixed, and did not seemly overly perturbed by yesterday’s sell-off in Europe. Meanwhile the shift in FOMC opinion continues. San Francisco Fed President Williams – traditionally a notable dove – conceded that the argument for a new dose of monetary stimulus is not that strong now. ...

Traders moving assets to safer, lower yielding currencies appear to be playing a factor in the correction of the major crosses. The USD and JPY, which are seen as a safer bet than others currencies in times of market stress, will likely keep drawing demand as investors stay away from riskier assets. Economic News USD - U.S Dollar Soars against the EUR and GBP The dollar rose against the EUR on Thursday, reversing the single currency's earlier gains, as investors grew more risk averse and sought safety in the dollar. By yesterday's close, the USD rose against the EUR, pushing the oft-traded currency pair to 1.3370. The dollar experienced similar behavior against the GBP and closed at 1.5900. As the U.S economy stabilizes, currency traders have started to focus more on fundamentals such ...

(Reuters) - The euro and share markets staged big gains on Thursday as investors took heart from signs that Greece would complete a much needed private debt swap to avoid a chaotic default and that the U.S. economy would deliver more upbeat news. Wall Street was also set to open higher .N ahead of weekly jobless claims data that are expected to confirm the strength of the domestic labor market. But investors are likely to remain cautious ahead of a formal announcement on the Greek deal, as well as Friday's keenly-watched U.S. jobs report, while central banks are being closely monitored for signs they will keep promoting growth. "This (Greece) has been the game of anticipation. I think it's likely to remain volatile but overall ... we would be expecting more upside potential moving into ...

(Reuters) - Stock markets rose on Thursday and the euro gained as investors bet that Greece would pull off a bond swap needed to avoid a chaotic default and that the U.S. economy would deliver more upbeat news. But markets are expected to remain cautious ahead of the formal announcement on the Greek deal, as well as Friday's keenly-watched U.S. jobs report, while central banks are being closely monitored for signs they will keep promoting growth. "This (Greece) has been the game of anticipation. I think it's likely to remain volatile but overall ... we would be expecting more upside potential moving into next week," Luca Solca, global head of European research at CA Cheuvreux, said. The MSCI world equity index .MIWD00000PUS gained 0.8 percent to 326.61 after gains across Asia and in U.S. ...