ZuluTrade Blog

Market View

D-Day - Draghi day.......

Thursday, September 6, 2012 3:39 AM GMT

Good Morning,


§D-Day - Draghi day and one year anniversary of the 1.2000 EURCHF floor today. All eyes will be on Mr. Draghi this afternoon when he presents his bond plan, it looks like that there is no ECB cut expected anymore after leaks said ECB will refrain from lowering rates today. EURCHF continued to rise (1.2058) on hopes that the ECB plan will help to ease tension on the cross, there were also some rumors in the market that SNB may act again on the 1 year anniversary of the floor introduction which falls on the same day like the ECB meeting today. Personally I doubt that they should act, why should they expose themselves even more to the market, the ECB plan is meant to lower the rates burden but will not be an immediate fix for all the problems in Europe. AUDUSD dipped to a fresh 6 weeks low (1.0165) but recovered later on the mixed numbers. Otherwise very little news flow overnight.


§Stocks: Nikkei -0.20 %, Hang Seng -0.10 %, Shanghai Composite +0.26 %, Dow Jones +0.09 %, S+P500 -0.11 %


§German Finance Minister Wolfgang Schaeuble warned the European Central Bank on Wednesday not to forget that its top job is to keep inflation under control, not bail out stressed governments. Speaking to German television on the eve of a crucial meeting of the ECB's governing Council, Mr. Schaeuble said: "I am sure that the ECB is aware that its primary mandate is to preserve price stability," rather than to finance public deficits through the "printing press." At the same time, Mr. Schaeuble expressed dismay at the degree to which the issues under consideration by the ECB have been leaked to the press, giving rise to the perception of a personal dispute between ECB President Mario Draghi and German central bank head Jens Weidmann. Mr. Weidmann is understood to be opposed to Mr. Draghi's plan to revive purchases of government bonds by the ECB. "This whole speculation of 'who, with whom, and against whom' does not serve the independence of the central bank," Mr. Schaeuble said.


§Australia Data Recap    Period     Survey    Actual    Prior    Revised

* Employment Change      Aug         5.0k       -8.8k     14.0k      11.7k

* Unemployment Rate       Aug        5.3 %     5.1 %      5.2 %


§Bank of Japan won't buy bonds to finance debt, Governor Masaaki Shirakawa says in Tokyo today. * Japan's economy is recovering "moderately" * BOJ must be aware of overseas risks * BOJ will continue to conduct appropriate policy



US ADP Employment Change Aug


US Initial Claims


US ISM Non-Manufacturing Aug


Eurozone Household Consumption Q2 P


Eurozone GDP Q2 P


Germany Factory Orders July


Bundesbank Dombret + Nagel


ECB announces interest rates


ECB press conference


ECB Mersch + Coene


UK Halifax house Price Aug


BOE Asset Purchase Target


BOE announces rates


Sweden Service Production July


Sweden Riksbank announces rates



Have a good day

Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.