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Currencies took a break in New York and Asia, after the massive Euro short- covering

Friday, July 27, 2012 4:18 AM GMT

      Good Morning ,

§Currencies took a break in New York and Asia, after the massive Euro short- covering on the back of ECB Draghi's comments yesterday. EURUSD traded in a narrow 1.2270-1.2292 range in Far East.

§Stocks: Nikkei +1.01 %, Hang Seng +1.84 %, Shanghai Composite -0.04 %, Dow Jone +1.67 %, S+P500 +1.65 %

§A proposal for a banking union in the euro zone will be made in early September, European Commission President Jose Manuel Barroso said on Thursday.

§European Commission President Jose Manuel Barroso called on Greece Thursday to implement its delayed reform program, but reaffirmed the country's place inside the euro zone. "The key word is: deliver, deliver, deliver. The main issue is: implementation to deliver results," Mr. Barroso said after a two-hour meeting with Greek Prime Minister Antonis Samaras.

§Telegraph notes to activate EFSF to buy Spanish bonds, would require calling the Bundestag's finance committee back from holiday for a vote first.

§OECD's Angel Gurria said European authorities are not using all their tools to solve the debt crisis and questioned the flexibility of the European Central Bank's mandate.

§IMF Lagarde said the first risk facing the global economy is the looming fiscal cliff in the U.S., followed by the euro-area crisis. "Risk number one starting west is clearly the fiscal cliff in the United States of America when the deficit and the debt to GDP ratios are worse actually than in the euro zone," she said at a conference. "There's great uncertainty as to how Congress can actually deal" with this."

§Japan Data Recap Period Survey Actual Prior * National CPI yoy June 0.0 % -0.2 % 0.2 % * Tokyo CPI yoy July -0.6 % -0.8 % -0.6 % * Retail Trade yoy June 1.1 % 0.2 % 3.6 % * Retail Trade mom sa June 0.2 % -1.2 % 0.7 % * Large Retailers Sales June -1.6 % -2.6 % -0.8 % rev

§Bank of Japan Deputy Governor Hirohide Yamaguchi said Japanese bond yields may rise if the country loses market trust in its finances or if overseas investors start selling its bonds, stressing the need for efforts toward fiscal reform.

§The Japanese government kept up its pressure on the central bank to further ease monetary policy in a report issued today. In this report, the government argued that an ultra-loose monetary policy, even when interest rates are near zero, can stimulate the economy by affecting asset prices, with the effect more evident in currency markets than other markets.

§China's industrial profits fell 1.7 percent in June from a year earlier, easing from May's 5.3 percent decline.


TODAY'S FIGURES

 

14.30

 

US GDP Q2 A

14.30

 

US Annual Revisions of GDP

14.30

 

US Personal Consumption Q2 A

14.30

 

US GDP Price Index Q2 A

14.30

 

US Core PCE qoq Q2 A

15.55

 

US Univ. of Michigan Confidence July F

08.45

 

France Consumer Confidence Indicator July

10.00

 

Italy Business Confidence July

14.00

 

Germany CPI July

09.00

 

Switzerland KOF Leading Indicator July

09.30

 

Sweden Retail Sales June

(CET)

Have a nice day !

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