US Morning Notes – USD higher, Italian debt troubles, IMF gold sales
Here are the latest Financial News:
FX Highlights
- The USD is trading higher in reaction to Wednesday’s FOMC minutes which state that the Fed discussed a possible discount rate hike in January and in reaction to concern about bad loans in Italy, GBP pressured by report of worse than expected UK January public sector borrowing, the UK posts its first budget deficit for January since 1993, commodity currencies trade lower pressured by report that the IMF looks to sell more gold, AUD downside limited by hawkish comments from the RBA’s Lowe and rising Australian consumer confidence, CAD supported by report of a sharp jump in Canada’s inflation
- Focus turns to today’s release of US initial jobless claims, PPI, leading indicators and Philly Fed survey and Canada’s CPI and net foreign investment flows
- IMF plans to sell 191.3 tons of gold
- The BOJ left monetary policy unchanged, says pace of recovery to remain moderate, BOJ did not announce new plans to combat deflation, BOJ governor urges the Japanese government to respect the BOJ’s independence, JPY higher
- RBA Assistant Governor Lowe says the outlook for the Australian economy is positive, he expects interest rates to return to more normal levels, RBA sold A$295mln in January, Australia’s Q4 NAB business confidence rose by two points to +18, January merchandise imports declined by 13%, AUD lower
- UK February manufacturing CBI at -36 compared to -39 last month, January public sector borrowing at 4.3bln, January M4 money supply growth at 0.6%, BOE’s Barker warns of a of another quarter of contraction in the UK economy, mortgage approvals declined to 49k from 60k last month, GBP lower
- Swiss February ZEW investor sentiment falls to 52.5 versus 56.6 last month, January exports fall by 3.6%, CHF lower
- Canada’s CPI rose by 0.3% in January with annual inflation rate at 1.9% compared to 1.3% in December, CAD higher
- Blue Gold Capital Management says China may let its currency appreciate by 5% next month
- Health insurer Humana Health Care plans to reduce its workforce by 5% and cut 2,500 jobs
- Mortgage applications declined by 2.1% in the week ending February 12th
- President Obama says the stimulus saved the US economy
- US equity markets set to open lower, European equities 0.25% higher, Nikkei closed 29 points higher
Upcoming Events
- US - Thursday, initial jobless claims for the week ending 02/13 will be released expected at 430k compared 440k last month along with January PPI expected at 0.8% compared to 1% last month, January leading indicators expected at 0.5% compared to 1.1% last month and Philly Fed survey for February expected at 17 compared to 15.2 last month
- CAN - Thursday, January CPI will be released expected to rise by 0.3% compared to -0.3% last month along with December net foreign investment expected at 8bln compared to 10.5bln last month
Source: Easy Forex
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