This is a review of the elements likely to affect foreign exchange
(Forex) trading in Europe:
IMF: Europe's Crisis Not Over, Faith in Euro
Needed - CNBC
Stalling China chills Japan and South Korea - FT
Euro Crisis Faces Tests in German Court, Greek Infighting - Bloomberg
China's US Debt Holdings Don't Threaten Security, Pentagon Report Finds - Bloomberg
Asia Trade Data Shows Weakening Demand - WSJ
Death of Alpha? Why Beating Markets Is a Dying Trade - FT
Consumer Credit in US Unexpectedly Falls $3.28 Billion - Bloomberg
Trade Deficit in US Probably Widened as Exports Eased on Global Slowdown - Bloomberg
Obama lead grows, Romney still in striking distance - Reuters
Treasury Sells Big Chunk of AIG Stock at a Profit - CNBC
New IPhone Redesign to Sell 10 Million Units Within Weeks - Bloomberg
Bill Gross Sees Higher Long-Term Yields Amid Reflation - Bloomberg
Kudlow: Fiscal Cliff Will Linger Months After Election - CNBC
Dutch Disease Seen in Manufacturing Bond Decline: Canada - Bloomberg
Asian Stocks Fall on European Debt Concern, Ahead of Fed - Bloomberg
China's New Loans Top Economist Estimates as Wen Acts to Reverse Slowdown - Bloomberg
Japan Cost-Cutting Leaves Pay Near Crisis Low as BOJ Eyes Easing - Bloomberg
China VP Xi's Absence from Public Fuels Speculation - Bloomberg
Hong Kong Bailiffs Start to Evict Occupy Protesters From HSBC - Bloomberg
Indonesia Billionaires Bet on Palm Oil With GIC, Northstar - Bloomberg
Aussie, Kiwi Stay Lower as China Concern Saps Risk Demand - Bloomberg
Hollande makes bold vows to reverse slide - FT
French Sentiment, Factory Output Rise, Point to Rebound - Bloomberg
Monti: EU Must Deal With Political Backlash Against Euro - CNBC
Lowered Borrowing Costs Give Spain Hope - WSJ
IMF boosts Irish debt relief case - FT
Euro hovers below 4-month high, 200-day average looms - Reuters
Democracy loses in struggle to save euro - FT
Europe's Smaller Banks Are 'Real' Problem: EU's Barnier - CNBC
European groups issue €7.8bn of fresh debt - FT
EBRD President Urges Action for Eastern Europe - WSJ
Turkey's economy runs out of steam - FT
EUR: The main euro crosses are continuing to show a strong footing despite last week's rally. Yet consolidation is much needed to test important levels. For instance, EUR-USD is now hovering near its 200-day moving average and EUR-JPY is holding above the psychological threshold at 100 that was breached last Friday. The ambitious ECB plan to buy unlimited sovereign debt assets from troubled Eurozone members continues to buoy the common currency although the upcoming German Constitutional Court verdict could reduce the euro's renewed attractiveness.
GBP: The sterling crosses are also showing some resilience. Cable is keeping its upward momentum and is still above the 1.6000 level, while GBP-JPY is moving sideways and now trades close to 125.30. EUR-GBP is below the 0.8000 resistance area that was breached yesterday. Trade balance figures in the UK are to be published today.
CHF: The Swiss franc has takes a pause after its recent spike against the euro. EUR-CHF is below the 1.2100 level after touching 1.2155 last Friday. Meanwhile, we can see USD-CHF trading a tad below 0.9450. We are awaiting the SNB´s meeting next Thursday.
Nordics: Today we may see more price action in the krona and the kroner. The NOK and the SEK are advance against the US dollar
but easing versus the almighty euro (the only truly floating currency left some would say).
USD & JPY: The US dollar continues to be sold after disappointing monthly employment numbers in the US. Non-farm payrolls under 100k have prompted talk of Fed stimuli. A third round of quantitative easing (QE3) and the extension of the interest-rate guidance to 2015 from the current 2014 is on the cards. Meanwhile, the Japanese yen is also weak given protracted talk of the Bank of Japan going for new asset purchases. USD-JPY trades a bit below 78.20.
CAD, AUD & NZD: The three dollars are showing some progress today, led by the Canadian loonie. The aussie and the kiwi are trailing behind. Rumour has it that the Australian RBA is poised to reduce its official interest-rate at its next meeting.