ZuluTrade Blog

EURUSD dropped to 1.2450 (lowest since July 2010)

Market View | Wednesday, May 30, 2012 3:39 AM GMT

Good Morning ,

- EURUSD dropped to 1.2450 (lowest since July 2010) after FT reported that
ECB is opposing Spanish plans to recapitalise banks by using ECB's 3 months
financing window. USDCHF has hit 0.9642. Commodity- and EMG block seems to be
lagging the EUR move.

- Stocks: Nikkei -0.84 %, Hang Seng -2.09 %, Shanghai Composite -0.30 %,
Dow Jones +1.01 %, S+P500 +1.11 %

- Financial Times reported that the ECB has rejected a Spanish plan to
recapitalize Bankia by indirectly using the cash from the ECB's three-month
refinancing window. According to the FT, two European officials said that the
plan could breach the EU's ban on central bank funding of governments.

- The European Commission will set out its economic strategy for the euro zone
today, spelling out measures to balance growth with unpopular fiscal
consolidation that will be particularly pointed for Spain and Italy.

- Bank of Spain Governor Miguel Angel Fernandez Ordonez resigned a month early.
Ordonez met Prime Minister Mariano Rajoy yesterday, and the premier backed
his decision to leave on June 10 instead of July 12, the Bank of Spain in
Madrid said in an e-mailed statement.

- Most Greeks want to see the terms of an international financial rescue
revised even as they acknowledge that not abiding by austerity measures
required for the funds may lead to the country leaving the single currency,
according to an opinion poll conducted weeks before a second general election
on June 17. Almost eight in 10, or 77 percent, of the 1,600 Greeks
surveyed by GPO SA pollsters for the survey broadcast on Athens-based Mega TV
said the terms of the bailout should be revised. More than half, or 52.4
percent, said they should stay in the euro if they were forced to accept the
current austerity measures accompanying the bailout while 44.5 percent said
they shouldn't. Most Greeks, or 81 percent, said they wanted to remain in the single currency.

- Bank of Japan Deputy Gov. Hirohide Yamaguchi said the domestic economy is in
better shape than expected and new easing may not be needed to meet the
central bank's inflation target, the Nikkei newspaper reported, citing
an interview.

- Japan Data Recap                    Period    Survey    Actual    Prior
* Manufacturing PMI                    May         -          50.7     50.7

- Australian retail sales unexpectedly fell for the first time in 10 months.

- Australia Data Recap               Period    Survey    Actual     Prior
* Retail Sales                            Apr          0.2 %     -0.2 %    1.1 % rev
* Construction Work Done           Q1          3.0 %     5.5 %     -3.4 % rev

- New Zealand Data Recap          Period    Survey    Actual     Prior
* Building Permits mom                Apr      -10.0 %    -7.2 %    19.6 % rev

- China needs an appropriate amount of investment to spur economic growth but
Beijing should not launch a new round of aggressive fiscal stimulus,
influential academics said in remarks published in leading state-backed
newspapers on Wednesday.

- 1600 US Pending Home Sales Apr
- 1920 Fed Fisher
- 1930 Fed Dudley
- 2230 Fed Rosengren
- 1000 Eurozone M3 Apr
- 1100 Eurozone Consumer Confidence May
- 1100 Eurozone Economic Confidence May
- 1100 Eurozone Industrial Confidence May
- 1100 Eurozone Services Confidence May
- 1100 Eurozone Business Climate Indicator May
- 1200 European Commission issues economic-policy recommendations for all 27
European Union countries
- 1800 France Total Jobseekers Apr
- 1800 France Jobseekers Net-Change Apr
- 1000 BOS Ordonez
- 1115 ECB Liikanen
- 1630 BOP Costa
- 1000 Italy to sell 2017/22 Bonds
- 1030 UK Net Consumer Credit Apr
- 1030 UK Net Lending Sec. on Dwellings Apr
- 1030 UK Mortgage Approvals Apr
- 1030 UK M4 Apr
- 0900 Switzerland KOF May
- 0930 Sweden Current Account Q1
- 0930 Sweden GDP Q1
- 1430 Canada Industrial Product Price Apr
- 1430 Canada Raw Material Price Index Apr

 (CET)

Have a good day !

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