• The USD is trading higher to start the session Tuesday recovering from early overseas losses with the EUR pressured by report of weaker than expected German IFO, GBP pressured by report of weak UK mortgage lending and speculation that the BOE may expand quantitative ease, USD was also supported by an uptick in risk aversion as global equity markets decline, CHF traded at a two week low versus the EUR pressured by rumors of SNB intervention, commodity currencies traded lower in reaction to a decline in crude prices and weaker equity market trade, AUD downside was limited by hawkish comments from RBA Deputy Governor Battellino, JPY trades higher supported by declining risk appetite
• Focus turns to today's release of US Case Shiller HPI and consumer confidence
• Japan's economic secretary says the government's economic assessment was unchanged last month but the outlook is a bit weaker, he cited concern about deflation and weakening employment outlook, JPY higher
• German Chancellor Merkel pledged to do everything necessary to ensure Greece reduces its deficit, Merkel said the stability of the EUR is at stake, ECB's Smaghi says aid to Greece will be lower than earlier reports, German February IFO declines to 95.2 from 95.8 last month, IFO says the German economy may have contracted in Q1, EUR lower
• UK January net mortgage lending falls to its lowest level since last July, BOE's Miles says QE may be expanded if economic outlook weakens, BOE's King says it may be necessary to expand QE, GBP lower
• RBA Deputy Governor Battellino says that AUD rise was important in helping to contain inflation, AUD lower
• One million people could loose jobs benefits if Congress does not act to extend their benefits by March, 11.5mln people depend on jobless benefits
• IMF officials are reported to be in Athens at the request of the EU commission and Greek authorities
• US equity markets set to open lower, European equities 0.25% lower, Nikkei closed 48 points lower

Upcoming Events

• US - Tuesday, December Case Shiller Home Price Index will be released expected at -3.2% compared to -5.3% last month along with February consumer confidence expected at 55 compared to 55.9 last month
• CAN - Tuesday, no major Canadian economic data is due for release today

Download Report(s):

File	Description	File size
100223_US_Morning_Notes.pdf		52 Kb