Qe Speculation Leads

Euro hits fresh 2012 lows ahead of informal summit; More reports of an ECB contingency plan in the works Economic Data (GR) Greece Mar Current Account: -€2.1B v €1.1B prior (NL) Netherlands Mar Consumer Spending Y/Y: % v -1.3% prior (SE) Sweden Apr Unemployment Rate: % v 7.8%e (EU) Euro Zone Apr Current Account: +€7.5B v -€5.6B prior; Current Account Seasonally Adj: +€7.5B v -€1.2B prior (IT) Italy May Consumer Confidence: 86.5 v 89.5e (lowest reading on record after series began in 1996)) (ZA) South Africa Apr CPI (all items) M/M: 0.4% v 0.5%e; Y/Y: % v 6.2%e (TW) Taiwan Apr Industrial Production Y/Y: -2.3% v -1.7%e; Commercial Sales Y/Y: -2.4% v -0.9% prior (UK) Apr Retail Sales Ex Auto Fuel M/M: -1.0% v -0.7%e; Y/Y: -0.3% v +0.7%e (UK) Apr Retail Sales with Auto Fuel M/M: -0.8% ...

The major currencies continue to trade in defined ranges as markets look for direction. Headline events last week such as the US jobs report and interest rate decisions by the ECB and the Fed provided sharp price movements at times though the existing price levels were not broken as markets were driven by events in Europe. This week will lack the big name data releases on the economic calendar though headlines stemming from Greece and Italy will keep traders busy throughout the week. Economic News USD - Mixed US Non-Farm Jobs Report Shows Recovering US Economy Last Friday's Non-farm payrolls added 80K jobs in the month of October with a revised 158K jobs added in September. Consensus forecasts for the report were for 95K. The revised September numbers helped to give the report a ...

The Week Ahead Highlights * QE speculation leads to broad-based USD weakness * The UK's deficit plan under the microscope * MPC minutes crucial for sterling in the short-term * Europe's peripheral concerns put to bed for now * BoC likely to hold steady on rates, growth concerns * Key data and events to watch next week QE speculation leads to broad-based USD weakness The markets have been fixated on the potential of further Fed easing measures in the form of a second round of asset purchases or 'QE2'. This past week gave a lot of clues into the Fed's thinking with the release of the September 21 FOMC meeting minutes and Fed Chairman Ben Bernanke's speech at Friday's Boston Fed conference. The meeting minutes showed that 'many' on FOMC noted too-slow growth and ...