ZuluTrade Blog

EURUSD dropped to a 4 months low in Asia after Greek political leaders failed in their latest efforts to form a ruling coalition

Market View | Monday, May 14, 2012 3:39 AM GMT

Good Morning ,

- EURUSD dropped to a 4 months low in Asia (1.2878), after Greek political
leaders failed in their latest efforts to form a ruling coalition. President
Papoulias will try to form again a government today, eyes will be also on the
auctions in Italy and Spain today. There were also big changes in the
EUR + AUD IMM positions.

- Stocks: Nikkei +0.14 %, Hang Seng +0.29 %, Shanghai Composite +0.28 %,
Dow Jones -0.27 %, S+P500 -0.34 %

- Greece's radical leftist leader spurned an invitation from the president for
a final round of coalition talks today. President Karolos Papoulias must call
a new election if he cannot persuade them to compromise. After a day of
fruitless negotiations on Sunday, he invited politicians from the biggest
three parties to return to the presidential mansion on Monday, along with a
small leftist group.

- Hans-Werner Sinn, president of the Munich-based Ifo economic institute, said
supplying southern European countries with continued, cheap, public credit
will lead to a infirmity if not to a complete economic collapse in Europe,
Handelsblatt said.

- OECD Sees Higher Greek Euro Withdrawal Risk: "The danger exists, and today it
is greater than it was six months ago," Pier Carlo Padoan of the Organization
for Economic Cooperation and Development is quoted as saying in an interview
published in La Stampa.

- Greek withdrawal "is not necessarily fatal, but it is not attractive,"
European Central Bank Governing Council member Patrick Honohan said in
Tallinn on May 12. An exit was "technically" possible yet would damage the
euro, he said.

- ECB council member Jens Weidmann said Greece won't get neither long-term aid
from euro countries nor ECB support without saving measures, Frankfurter
Allgemeine Sonntagszeitung said, citing an interview.

- ECB council member Jens Weidmann said German inflation won't get out of
control, Welt am Sonntag said, citing an interview.

- Support for banks is credit negative for Spain, Moody's said in it latest
weekly credit outlook.

- German Chancellor Angela Merkel's Christian Democratic Union (CDU) has
suffered its worst defeat in the state of North Rhine Westphalia in a
mid-term election, a week after it lost control of the northern state of

- China cut reserve ratio 50bps to 20% on Saturday

- Japan Data Recap      Period    Survey   Actual    Prior
* Domestic CGPI yoy      Apr         0.1 %   0.3 %     0.5 % rev

- Australia Data Recap           Period   Survey   Actual    Prior
* Home Loans mom                  Mar       -2.0 %   0.3 %     -2.5 %
* Investment Lending               Mar          -         -1.0 %      4.3 % rev

- The Reserve Bank of Australia's recent interest-rate reductions should help
bolster the nation's non-resource industries hobbled by an elevated currency,
Deputy Governor Philip Lowe said.

- New Zealand Data Recap            Period   Survey   Actual      Prior
* Performance of Services Index    Apr          -           56.7        54.2 rev
* Retail Sales qoq                               Q1        -0.5 %    -1.5 %     2.2 % rev

- IMM Positions: EUR -144k vs -107k, JPY -41k vs -52k, GBP 25k vs 17k, CHF -17k
vs -14k, CAD 60k vs 70k, AUD 25k vs 52k, NZD 6k vs 8k

- no US Data
- 0800 Germany Wholesale Price Index
- 0845 France Current Account Mar
- 1000 Italy CPI Apr
- 1100 Eurozone Industrial Production Mar
- 1030 Spain to sell 364/518 Day Bills
- 1100 Italy to sell 2015/20/22/25 Bonds

- 0930 Sweden Industry Capacity Q1
- 1000 Norway Credit Indicator Growth Mar
- 0915 Switzerland PPI Apr
- 1745 SNB Jordan


Have a good start!

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.