ZuluTrade Blog

The euphoria is over. EURUSD dropped to 1.2447 in Asia

Market View | Tuesday, June 12, 2012 3:46 AM GMT

Good Morning ,

- The euphoria is over. EURUSD dropped to 1.2444 in Asia, but got lifted later
by cross-JPY buying after IMF said that the JPY is overvalued (JPY 79.17
- 79.61, EURJPY 98.72 - 99.54).

- Stocks: Nikkei -1.16 %, S+P500 -0.81 %, Shanghai Composite -0.80 %,
Dow Jones -1.14 %, S+P500 -1.26 %

- European Union Economy Commissioner Olli Rehn refused to speculate about
whether Italy could become the next euro-area nation to request emergency
aid, saying Prime Minister Mario Monti's government is tackling the nation's
economic weaknesses.

- ECB Noyer said the euro area needs a "concrete leap" in financial integration
with the creation of a unified banking supervisor and deposit insurance

- The planned auctions of Spanish banks seized by the government may suffer
delays due to recommendations by the International Monetary Fund on how
rescued financial entities should be sold, reports Cinco Dias in its Tuesday
Internet edition.

- EU banking union with banking supervisor, deposit guarantee plan, rescue fund
may be on the horizon, European Commission President Barroso tells FT

- European finance officials have discussed limiting the size of withdrawals
from ATM machines, imposing border checks and introducing euro zone capital
controls as a worst-case scenario should Athens decide to leave the euro
- EU sources.

- Federal Reserve Bank of Chicago President Charles Evans said he would support
a variety of measures to generate faster job growth, underscoring his
preference for more stimulus.

- Federal Reserve Bank of Atlanta President Dennis Lockhart said falling
Treasury yields take pressure off the central bank for further action as
policy makers prepare for a meeting next week.

- The International Monetary Fund said Japan's currency is overvalued and the
central bank should consider further monetary stimulus, including
longer-dated government bonds and private securities. "The exchange rate has
appreciated over the past year partly because of safe-haven capital inflows,
and our analysis suggests that the yen is moderately overvalued from a medium-
term perspective," the IMF said in a report on Japan's economy released today.

- Japan Data Recap                        Period     Survey    Actual       Prior
* Tertiary Industry Index mom          Apr        0.3 %    -0.3 %    -0.6 %
* Domestic CGPI mom                     May      -0.4 %    -0.4 %      0.2 %
* Domestic CGPI yoy                       May      -0.4 %    -0.5 %     -0.3 %

- Australia Data Recap                    Period      Survey      Actual        Prior
* NAB Business Conditions               May           -              -4              0
* NAB Business Confidence              May           -               -2              4

- New Zealand Finance Minister Bill English responds to question in parliament
* Says the RBNZ does have sufficient powers to deal with a significantly
negative international event
* Says powers were tested in 2008, and since then considerable work has been
done by the RBNZ

- 1330 US NFIB Small Business Optimism May
- 1430 US Import Price Index May
- 1600 US IBD/Tipp Economic Optimism June
- 2000 US Monthly Budget Statement May
- 1730 Fed Tarullo
- 0730 France Non-Farm Payrolls Q1 F
- 0900 Bundesbank Lautenschlaeger
- 1215 Finland PM Katainen meets Merkel, ECB Asmussen
- 1230 ECB Makuch
- 1415 Merkel, Schaeuble, Asmussen speak at CDU Economic Council
- 1700 ECB Nowotny
- 1700 ECB releases financial stability review
- 1030 UK Industrial Production Apr
- 1030 UK Manufacturing Production Apr
- 1600 UK NIESR GDP Estimate May
- 0745 Switzerland SECO June 2012 Economic Forecasts


Have a nice day !

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