German deputy Fin. Minster says Germany and France are not trying to push Greece from the EMU.
EUR/USD re-tests 1.3167
The Euro made a run up earlier with no confirmed reason why other than reports that there was a large Asian player making large purchases. The pair found resistance at 1.3167, Sunday’s high.
PIMCO says a hard landing for China is only a “tail-risk scenario”.
Sees China’s policy easing “less aggressive” than in 2008.
Swiss Foreign Currency Reserves (Jan) 227.2 bln vs. 524.2 bln prior release.
French Trade Balance (Dec) -5.0 bln, expected at 5.35 bln.
China FX regulator says forex inflows have slowed, but no large outflows.
EU’s Juncker says Greece cannot be forced out of the Euro, has no doubt Greece will fulfil its duties.
Japan leading indicators 94.3%; better than expected.
2-7 Economic Calendar
RBA Unexpectedly Keeps Rates Unchanged @ 4.25%
The RBA did not move 25 basis points lower as expected instead kept rates unchanged, moving the Aussie higher against all its counterparts, moving ~8 pips higher against the USD initially. The RBA added the following comments suggesting there was room to move on rates if demand weakened:
- Financial Market sentiment remains skittish, has improved.
- Term funding markets have reopened.
- Economic growth close to trend.
- Labor markets softened during 2011.
- CPI inflation has declined as expected.
- Year end CPI to fall further in next quarters.
- Underlying inflation is about 2.5%.
- Credit growth remains modest.
- House signs show some sign of stabilizing at end of 2011.
- Terms of trade have started to decline.
usd/twd finding some resistance on the bottom of this channel.
usd/twd finding some resistance on the bottom of this channel.
Shirakawa Says Japan’s Economy in Severe Situation


