Temporary Relief To Euro

Fundamental Analysis EUR "We expect euro-region inflation to normalize in 2013" - Michael Schubert, an economist at Commerzbank AG Inflation in the seventeen nation bloc eased to 2.6 per cent in March from 2.7 per cent the previous month, said the European Union’s statistics office in Luxembourg on Wednesday. USD "Uncertainty about Greece and the effects a potential exit out of the euro would have on Europe, the global economy and the financial system in general is driving investors out of stocks into safe havens" - Markus Huber, head of German sales trading at ETX Capital The Standard & Poor's 500 lost 0.44%, or 5.86 points, to 1,324.80. The Dow Jones Industrial Average declined by 0.26%, or 33.45 points, to 12,598.55. GBP Unemployment figures are a "welcome step in the right ...

Sunrise Market Commentary - Fixed Income: Largely uneventful session for core bonds - Core bonds had an insignificant, technical and sentiment-driven session that left bond yields slightly higher in the close. Overnight, negative headline news on JP Morgan and Greece triggered a moderately strong opening of the Bund. Europe will be in the focus today with the publication of the Spanish banking plan and the EU spring forecasts. - Currencies: EUR/GBP testing 80.00 barrier, as BoE stops printing press - On Thursday, sentiment on risk turned slightly less negative, even without progress in the Greek debt/election crisis. Nevertheless, the decline in EUR/USD slowed. EUR/GBP reached a minor low just below 0.8000 as the BoE halted its program of asset purchases. For now, we see no ...

The European Central Bank released the monthly report on May 10, explaining the bank’s actions and moves during the past month, starting with the interest rates, which remained unchanged at 1.0% for the fifth consecutive month as the Governing Council expects inflation to remain above 2.0% in 2012.ECB members didn’t discuss rate changes this meeting either. The European Central Bank sees that inflation is likely to remain above the target of 2.0% as upside pressures on prices prevail. However, over the medium-term risk to inflation remain broadly balanced, while the ECB has all the tools available against inflation, but still the pressures are to ease and inflation will fall below the target early in 2013. In regards to growth, the ECB sees that downside risks remain evident on the ...

Sunrise Market Commentary : 30/04/2012 - Fixed Income: new highs for Bund Future (141.38) and US Note Future (132-17) - Core bonds set new contract highs on Friday after the Spanish rating downgrade. However, sentiment changed in the European session and led to return action. Today, trading will be thin ahead of tomorrow's Labour Day Holiday in most of Europe. Main items this week will be the ECB meeting (Thursday) and the US payrolls (Friday). - Currencies: EUR/USD ignored the S&P downgrade of Spain. - On Friday morning, the focus on the European markets was on the S&P downgrade of Spain. However, the reaction developed in a very orderly way. EUR/USD reversed the early losses and the dollar lost further ground after the weaker than expected US GDP. USD/JPY is testing the key ...

The Weekly Bottom Line : 16/03/2012 HIGHLIGHTS OF THE WEEK United States Market participants are clearly trading on what everyone else seems to be feeling: the recovery is back. But the Fed, for its part, is not yet willing to admit that the economy has entered a new, stronger phase. Though the quickening pace of job growth is a positive sign, disposable income growth is still stagnant, and the recent run-up in commodity prices threatens to erode consumer spending growth. Europe's troubles haven't gone away. If market sentiment get's too far ahead of itself, the Fed may be tempted to fight back with another round of asset purchases. But if rising borrowing costs are a product of a stronger recovery then the Fed should be less concerned. Increased spreads may actually be ...

Today, markets rebounded suddenly to the upside led by the euro and the pound, where both currencies rebounded on a report clarifying that the euro zone officials will expand the firepower of the European rescue fund by 200 billion euros to 700 billion in total. Optimism spread after then as European lawmakers are taking more steps to provide further economic stabilization, where these steps are set to prevent other nations from following the Greek scenario and falling into the debt-trap, a move that could spread relief that Italy and Spain are well protected from any possible financial shock. Euro zone finance ministers in cooperation with central bankers will discuss expanding the capacity of the temporary European Financial Stability Facility and the permanent European Stability ...

Fundamental Analysis EUR "We expect the Greeks to rise to their responsibilities. This coming Monday, we will see whether Greece delivers or whether we will be forced to decide on another course of action, one that is not desired" - Steffen Kampeter, German Deputy Finance Minister The Euro rose against the US dollar and the Yen on Friday on hopes Greece was nearing a deal to secure a new rescue package despite rising worries about the ability of Greek leaders to rule the debt crisis. USD "We are seeing upward momentum in prices of food and other commodities that producers can’t pass along to consumers because consumers are still very fragile" - Lindsey Piegza, an economist at FTN Financial The Consumer Price Index (CPI) climbed 0.2% in January slightly below analyst median forecasts of ...

(Reuters) - The euro gained against the dollar and the yen on Friday on hopes for a rescue package for Greece but gains were capped before a key meeting on Monday with investors hesitant to make big bets before a U.S. holiday weekend. Greece edged closer to winning the 130 billion euro rescue as officials said Germany was optimistic a deal could be struck despite misgivings that Athens would stick to commitments. Euro zone finance ministers were due to vote on the package on Monday, the Presidents Day market holiday in the United States even though, given the stakes, some U.S. traders are expected to be at their desks. Traders said uncertainty could keep the euro rangebound until a rescue is finalized. "We're probably going to go home pretty flat," said John Doyle, a currency ...

The Weekly Bottom Line : 11/02/2012 HIGHLIGHTS OF THE WEEK United States Negotiations between Greece and its international lenders kept financial markets switching the risk button on and off throughout the week. A parliament vote on further austerity measures has been scheduled for Sunday; if it fails, Greece could default in March. In the U.S. initial jobless claims declined, bringing total claims down to levels not seen since September 2008. A $25 billion deal between the White House and five leading commercial lenders was announced on Thursday. It will help underwater homeowners to refinance their loans. It is a positive step, but arguably one with limited macroeconomic impact. Canada Canada's trade surplus more than doubled in December, on the back of a sharp 4.9% ...