US Morning Notes - USD and JPY lower, Bernanke likely to be confirmed |
 |
 |
|
Written by Michael J. Malpede
|
|
Monday, 25 January 2010 13:09 GMT
|
FX Highlights
- The USD is trading lower as equity markets rebound and the White House says it expects Fed Chairman Bernanke to be confirmed for second term, surveys in US press suggest that Bernanke will have enough Senate votes to be reconfirmed for a second term as Fed chairman, the Bernanke news helped to lift risk appetite, USD remains vulnerable to concern about the strength of the US recovery and the impact of new banking regulations proposed by President Barack Obama last week, commodity currency supported by statement from Chinese officials that monetary policy will remain loose
- Focus turns to today's release of US existing home sales which are expected to fall by 9.8% and the Dallas Fed manufacturing activity index expected to rise by 6%
- Bloomberg reports that the BOJ may be prepared to increase its purchase of government debt and enact more easing to support the Japanese economy and limit JPY strength, JPY lower
• Australia's Q4 final goods PPI falls by 0.4%, AUD higher
- EU November industrial orders rose by 2.7%, German GFK February consumer sentiment at 3.2, ECB's Nowotny says ECB has steady hand approach on withdrawal of its liquidity, demand for Greek bonds said to be strong, EUR higher
- BOE officials indicate that its emergency bond purchase plan will be under review, trade awaits Tuesday's UK advance Q4 GDP, GBP higher
- SNB Chairman Hildebrand says the SNB will continue to prevent excessive appreciation of the CHF, CHF higher
- Goldman reports that China's economy may surpass Japan's
- CFTC commitment of traders for last week showed that speculators increased short positions in the USD
- US equity markets set to open higher, European equities mixed, Nikkei closed 78 points lower
Upcoming Events
US - Monday, December existing home sales will be released expected at 5.90mln units compared to 6.54mln units last month along with the Dallas Fed Manufacturing Index
CAN - Monday, no major data is due for release in Canada today
|
