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SNB expressed with great conviction that the 1.2000 EURCHF floor will hold without fail

Friday, March 23, 2012 5:08 AM GMT

Good Morning ,

- FX risk remained offered, however within very narrow ranges overnight. Global
equities markets continued to trade in red zone on growth slowdown fears after
all the weak PMIs yesterday.

- SNB  really expressed with great conviction that the 1.2000 EURCHF floor will hold
without fail.

- Stocks: Nikkei -1.14 %, Hang Seng -1.32 %, Shanghai Composite -1.11 %,
Dow Jones -0.60 %, S+P500 -0.72 %

- European Central Bank President Mario Draghi said an exit by Greece from the
euro zone and introducing its own devalued currency wouldn't improve the
situation in the country, Bild reported today, citing Draghi.

- ECB Gonzalez- Paramo said it doesn't make sense to talk about a private
sector-involvement for Portugal. "It has been repeated that Greece is a
unique case, that means there is no sense in talking about it for Portugal,"
Gonzalez-Paramo told reporters. "To play with the term default is very
strange, one shouldn't be frivolous with default. Spain is a country's that
has a low level of public debt compared with the European Union average."

- French Finance Minister Francois Baroin lifted the government's growth
forecast for 2012 as the outlook for the European economy improved. The
finance ministry expects gross domestic product to expand 0.7 percent this
year, instead of the 0.5 percent it predicted in January, Baroin said in an
e-mailed statement. The economy will expand 1.75 percent in 2013, Baroin said.

- Federal Reserve Bank of St. Louis President James Bullard said U.S.
monetary policy may be at a turning point and the Fed's first interest-rate
increase since the global financial crisis could come as soon as late 2013.

- Richard Fisher, president of the Federal Reserve Bank of Dallas, said that
"a lot of money is lying on the sidelines, lying fallow" and "we will not
support" another round of quantitative easing, in an interview with Fox
Business Network.

- A leading economic index for China rose 0.8% to 227.2 in February, The
Conference Board, a New York-based research organization, said on its website
today.

- U.K. consumer confidence declined in February as rising joblessness and weak
economic growth made Britons more pessimistic about the future, Nationwide
Building Society said. An index of sentiment fell to 44 from 47 in January,
when it jumped nine points. A gauge of consumers' expectations for the
economy fell 4 points to 60.

- Swiss National Bank board member Jean-Pierre Danthine said the franc cap
remains policy makers' main focus as risks of deflation haven't fully
disappeared. "The minimum exchange rate of 1.20 francs per euro remains
front and center of the SNB's monetary policy," Danthine said at an event in
Zurich yesterday. SNB will enforce the limit "with the utmost determination.
It is prepared to buy foreign currency in unlimited quantities for this
purpose."

- Big Japanese firms expect the yen to trade at an average 80.6 per dollar in
April-September, a Reuters poll showed on Friday, suggesting companies are
sceptical about whether recent yen weakening will last.

- Japanese Prime Minister Yoshihiko Noda said on Friday he strongly hoped the
Bank of Japan would continue to act boldly to beat deflation, keeping up
pressure for further monetary stimulus to support a fragile economic
recovery.

- BOJ Governor Masaaki Shirakawa said the central bank will continue to pursue
policy to overcome deflation but warned against expecting too much from the
bank, saying it was already buying government bonds aggressively and that the
effect of its monetary easing would take time to appear on the economy.
"Monetary stimulus and measures to boost Japan's growth potential are both
important to beat deflation. We will continue our monetary easing, but
monetary easing alone cannot (end deflation)," Shirakawa told a parliament           committee meeting.

- 1500 US New Home Sale Feb
- 1845 Fed Bernanke
- 1930 Fed Lockhart
- 0845 France Business Confidence Indiator Mar
- 1000 Italy Retail Sales Jan
- 1830 ECB Gonzalez-Paramo
- 1030 UK BBA Loans for House Purchase Feb
- 0930 SNB Quarterly Bulletin
- 1000 Switzerland KOF March Economic Forecast
- 1200 Canada CPI Feb

   (CET)

Have a nice weekend!

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