German Flash Mfg & Services PMI stronger than expected
Mfg PMI came in at 50.9 vs 49.1 expected.
Services PMI came in at 54.5 vs 52.6 expected.
Eur/Usd advanced 15 pips since release to 1.3024.
Schaeuble; we can be optimistic that we’re on the right path
* more confidence in Euro
* optimistic EU leaders can agree on fiscal pact
News sent Eur/Usd up to 1.3037.
Shirakawa; negative impact of strong yen outweigh benefits
* closely monitoring impact of strong yen
* timing of return to recovery delayed a little
* trade deficit likely to be temporary
Usd/Jpy remains at 77.00, Eur/Jpy at 100.15.
IMF’s Lagarde on the wires
* fiscal compact must be put in place, without compact is unfinished job
* firewall “has to be sufficient in and on itself”
* “everybody needs to participate”
* remains positive on Euro
* PSI needs to be constructive, substanial
* financing of EU1 trillion over next 2 years; size needs to be very clear and high
India’s RBI cuts cash reserve ratio to 5.5% from 6%, leaves interest rates unchanged
Future Indian rate actions will be toward lowering them. The Rupee is holding above 50.00, currently at 50.15.
1-24 Economic Calendar
Spain’s Q4 GDP falls 0.3% vs. prior quarter, according to Bank of Spain
Eur/Usd is off slightly to 1.2918.



