ZuluTrade Blog

Currencies traded in narrow ranges overnight

Market View | Wednesday, June 27, 2012 3:41 AM GMT

Good Morning ,

- Currencies traded in narrow ranges overnight. Some EUR-crosses managed to
recover some of the losses after yesterday's drops. There was very little
news flow overnight.

- Stocks: Nikkei +0.26 %, Hang Seng +1.01 %, Shanghai Composite +0.26 %,
Dow Jones +0.26 %, S+P500 +0.48 %

- Joint euro-area debt probably violates European Union treaty provisions and
amounts to dangerous trickery, Der Standard quoted German Bundesbank head
Jens Weidmann as saying. Too many people are calling for the quick
introduction of comprehensive joint liability to stem the debt crisis through
devices such as bonds, bills, deposit insurance or a debt redemption fund,
the Austria-based newspaper quoted Weidmann, as saying.

- A leading ally of German Chancellor Merkel told a closed-door meeting of her
conservatives on Tuesday that euro zone governments were discussing removing
the preferred creditor status of the bloc's new permanent rescue fund,
sources told Reuters. Neither Merkel nor Finance Minister Wolfgang Schaeuble
spoke out in favor of such a move at the meeting, the sources said, leaving
it unclear whether the idea had the firm backing of the German government.
Separately, the parties in Merkel's coalition have proposed allowing the ESM
to funnel aid directly to national bank rescue funds, according to a draft
seen by Reuters.

- Amount is combination of maximum ESM, EFSF guarantees running partially in
parallel, Handelsblatt cites finance ministry report to budget committee.
* ESM and EFSF sums amount to EU285.3b, plus EU9.8b German share of EU
budget, and EU15.2b from 1st Greek rescue
* Finance ministry report says euro breakup would cost German much more
though doesn't put a figure on it

- Italian Prime Minister Mario Monti denied a report by daily Il Giornale that
he threatened to resign over failure to convince German Chancellor Angela
Merkel to agree on plans for joint European bond issuances.

- Federal Reserve Bank of Dallas President Richard Fisher said the Fed's
expansion last week of its maturity extension program known as Operation
Twist could interfere in the allocation of U.S. Treasury securities.

- Republican presidential candidate Mitt Romney would move aggressively to open
up more foreign markets for U.S. exports, while getting tougher with China on
its trade and currency practices, Senator Rob Portman said on Tuesday. The
potential Romney vice presidential running mate said President Barack Obama
has allowed the United States to fall "behind in a very significant way (on
trade) because we are not engaging in opening up markets virtually anywhere."

- New Zealand Trade Recap    Period     Survey     Actual     Prior     Revised
* Trade Balance                      May       300m        301m    355m      335m
* Exports                               May       4.06b        4.42b    3.89b      3.87b
* Imports                              May       3.80b        4.11b    3.53b

- New Zealand's central bank said that changes to the nation's potential growth
rate, the neutral level of interest rates and other benchmarks may make
policy settings more challenging. Indicators such as long-run unemployment
levels and the sustainable level of the exchange rate have also changed, and
the central bank needs to ensure that monetary and macro- prudential policies
are calibrated accordingly, RBNZ Bollard said.

- China may cut reserve ratio in July as funds are expected to remain tight
even after the 95b yuan of reverse repos by the central bank yesterday,
Shanghai Securities News reports on its front page, without saying where it
got the information.

- 1430 US Durable Goods Orders May
- 1600 US Pending Home Sales May
- var. Germany Laender CPIs June
- 0800 Germany Import Price Index May
- 1000 Italy Business Confidence June
- 1400 Germany CPI June
- 1200 UK CBI Reported Sales June


Have a good day !

Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.