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EURUSD is trading near 21 months lows and risk is off across the board again

Wednesday, May 23, 2012 3:31 AM GMT

Good Morning ,

- EURUSD is trading near 21 months lows and risk is off across the board again
(EURUSD low in Asia 1.2643, USDCHF high 0.9497). EMG- and commodity currencies
gave up all the gains from Friday. EU leaders will meet tonight in Brussels
and Hollande will try to persuade the leaders of his new ideas; he will
also meet Spain's PM Rajoy ahead of the meeting.

- Stocks: Nikkei -1.92 %, Hang Seng -1.95 %, Shanghai Composite -0.92 %,
Dow Jones -0.01 %, S+P500 +0.05 %

- Former Greek PM Lucas Papademos says there are no preparations underway in
Greece for possible Euro exit, CNBC reports, citing Papademos.
* Papademos unaware of specific preparations in European institutions or
other countries
* He "cannot exclude the possibility" countries are making preparations
* Papademos says Greece leaving euro is "unlikely to materialize," says it's
an "unwanted scenario

- Directors at the Federal Reserve's regional banks saw a pickup in the pace of
economic growth last month as housing, motor vehicle sales and consumer
spending gained strength. "Directors noted further improvement in economic
activity, and they anticipated growth would continue at a moderate pace,"
according to minutes released summarizing discussions of meetings in April.

- The Bank of Japan kept key overnight rate at 0-0.1% as expected
* Asset-purchase fund maintained at 40t yen, credit lending program at 30t yen
* BOJ rate decision was unanimous

- Japan's prime minister on Wednesday reiterated his call for the Bank of Japan
to steer monetary policy in a "decisive" way, but said it is too early to
discuss changing the law to strengthen the government's influence over the
central bank.

- Japanese Finance Minister Jun Azumi called on the central bank to further
ease policy moments before the Bank of Japan refrained from adding monetary
stimulus.

- Japan Data Recap                        Period    Survey    Actual     Prior
* Merchands Trade Balance           Apr      -470.8b  -520.3b   -84.5b
* Merchands Trade Exports yoy    Apr         11.8          7.9         5.9
* Merchands Trade Imports yoy   Apr         10.1          8.0        10.6

- Australia Data Recap                          Period    Survey    Actual    Prior
* Conference Board Leading Index        Mar          -           0.2 %     0.0 %
* Westpac Leading Index mom              Mar           -          0.4 %      0.0 % rev
* DEWR Internet Skilled Vac                   Apr            -         -0.8 %     -0.5 %

- Jin Liqun, chairman of China Investment Corp.'s supervisory board, said
European authorities have shown a "lack of leadership" on the euro area's debt
crisis and other countries may leave if Greece exits the single currency bloc.
"Ever since the debt crisis broke out, there has never been a master plan for
a resolution," Jin said. "The core members of the monetary union certainly
have to keep an eye out for possible copycats should the Greeks be allowed to
escape from the crisis unscathed."

- China signalled on Wednesday it wanted to ramp up private investment in its
energy sector, in line with recently unveiled government plans to fast-track
infrastructure investment to help combat the nation's slowing economy. Reuters

- 1600 US House Price Index Mar
- 1600 US New Home Sales Apr
- 2000 Fed Kocherlakota
- 1000 Eurozone Current Account Mar
- 1000 Italy Consumer Confidence May
- 1900 EU Leader hold informal dinner in Brussels
- 1030 Bank of England Minutes

- 1030 UK Retail Sales Apr
- 1200 UK CBI Trends Total Orders May
- 1430 Canada Leading Indicators Apr
- 1430 Canada Retail Sales Mar
- 0930 Sweden Unemployment Rate Apr

   (CET)

Have a good day !

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