MORNING BRIEFING: ECB continue to pile the pressure on Greece

[RTFX-Trading]

MORNING BRIEFING: ECB continue to pile the pressure on Greece

What’s new:
Japan: BoJ chief says to keep rates low to beat deflation.
Euro zone: Trichet continues to apply pressure on Greece, while warning that the ECB rules will not be altered for one country.
Euro zone: CPI in line with expectations.
Euro zone: Merkel says Euro facing a ‘difficult situation’ over the next few years.
United States: CPI increased less than expected.
IMF: IMF Chief says double-dips a threat if exits come too soon.

Today:


Overnight Rates and Indices:
EURUSD: 1.4393 – 1.4335.
USDCHF: 1.0292 – 1.0259.
GBPUSD: 1.6340 – 1.6251.
EURJPY: 132.41 – 130.50.
USDJPY: 91.06 – 90.72.
DowJones: 10’609.65 -0.94%
NASDAQ: 2’287.99 -1.20%
S&P 500: 1’136.03 -1.08%
Nikkei: 10’855.08 -1.16%.
Shanghai: 3’224.15 +0.27%,
Gold: $1’130.1
Crude Oil: $77.82
 
Comments:

ECB President Trichet continues to pile on the pressure on the Greek authorities. He said on Friday, the ECB will not alter rules for a single country. Trichet also affirmed a strong dollar view. Meanwhile CPI figures were in line with expectations coming in at 0.3% M/M.

The US dollar was range bound during Asian trading, at the start of a very important week in the earning season. On Friday, US CPI increased less than expected by 0.1% versus an expected 0.2%. The University of Michigan Consumer sentiment increased to 72.8% against an expected 74.0.

Meanwhile, from Japan earlier today, BoJ Governor Shirakawa repeated his pledge to keep rates low to fight deflation and return to sustainable growth. There are no major economic releases or scheduled speeches for today due to the US holiday. We maintain our current view on EURUSD, that is that the next move is to test the 200 day SMA which is today at 1.4276. A break of this could see the major reach 1.4150 or even 1.4000 in the medium term

Have a good week.

Emman Xuereb

Trading Desk
RTFX Ltd
Risk Disclaimer