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EUR/USD trade at 1.2255 waiting for the ECB’s President to announce its monetary policy

Thursday, August 2, 2012 3:53 AM GMT

  Good Morning ,

-  EUR/USD trade at 1.2250 level waiting for the ECB’s President Mario Draghi to announce its monetary policy and Spanish 10-year bond auction .  

- Asian markets were mixed. China’s Shanghai Composite (-0.50%), Hong Kong’s Hang Seng (-0.60%) and South Korea’s Kospi (-0.55%) edges lower on Thursday, unlike Japan’s Nikkei Stock Average (+0.25%) and Australia’s S&P/ASX 200 (+0.10%).

FOMC meeting concluded without any change in monetary policy . “The Committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.”  Fed kept rates at record lows between 0 to 1/4 percent and reiterated interest  are likely to remain at “exceptionally low levels at least through late 2014,” the statement failed to provide and immediate relief for those expecting further stimulus. 

- ADP employment data which added 163,000 new private sector jobs in July, outpacing expectations of 120,000 new positions.

Monti: Italy risks anti-euro govt if spreads aren’t tamed. Need to correct malfunction in euro zone markets EU growth to come from deepening of the single market Govt must make Italy more attractive to investors Strongly in favor of joint euro bonds but knows this is possible "only when other steps have been taken"

 

-  S&P affirms Germany AAA/A-1+ rating: Outlook stable .  

- Switzerland is rapidly turning into a large hedge fund with a small country attached.

Switzerland on Tuesday revealed its foreign exchange reserves now total 365 billion francs ($374 billion), a rise of 50 percent in just three months and taking it to a dizzying 62 percent of Swiss annual output.  Is now the world's sixth-largest reserves holder, behind only much larger or resource-rich countries like  China, Japan, Russia and Saudi Arabia .

 

- Greece coalition has approved additional spending cuts worth over €11.5bn, 

- IMF called on the BOJ to ease policy to address deflation. Japan's economy has shown signs of a tepid recovery, as Japan Center for Economic Research (JCER) reported June GDP rising for the 2nd consecutive month.

- BOJ's Morimoto reiterated the policymakers are prepared to conduct "powerful easing" in defense of financial stability amid continued state of elevated uncertainly

-  Australia posted an unexpected trade surplus for the first time in 6 months, as exports came in flat while imports fell 2%.

 

11:00   EUR Euro-Zone Producer Price Index (MoM)

11:00   EUR Euro-Zone Producer Price Index (YoY)

13:00   GBP Bank of England Rate Decision

 13:45  EUR European Central Bank Rate Decision

14:00   USD RBC Consumer Outlook Index

14:30   USD Initial Jobless Claims

14:30   USD Continuing Claims

15:45   USD ISM New York

 16:00 USD Factory Orders

(CET)

 

Have a nice day !

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