FOREX IN REVIEW

After a meeting last Friday with Greek Premier Antonis Samaras, German Chancellor Angela Merkel signaled that she intends to see the Euro remain intact, rejecting calls from coalition members. Reports note that the cost of a Greek exit from the Eurozone would cost far more than continuing to prop up the nation as it reforms its finances. EURUSD fell for the first time on Friday after 5 straight sessions of gains, continuing to slide to 1.2510 today. Major indices closed mixed Friday following widening yields in Spain and Italy while German yields fell the most in 7 weeks. The Italian MIB fell -0.49% following by a -0.13% decline in the Dutch AEX. The Spanish IBEX and Swiss SMI were both relatively stronger, rising 0.38% and 0.34% respectively.

Recent comments by Chinese Premier Wen Jiabao continue to send a shudder through the spines of investors as evidence of a hard landing scenario continues to rise. His latest comments centered on crumbling industrial profits, adding to speculation that the government will engage in further stimulus measures to promote growth and employment. The major indices are mixed as investors in Japan expect further easing in China and the U.S. which is boosting equities and weakening the Yen. The Nikkei has gained 0.34% tracked closely by the 0.30% rise in the Australian ASX. The Hang Seng is weaker, falling -0.15% as capital outflows from equities in China continues to gain pace. USDJPY has continued to trek back to the upside in the overnight session, rising 0.09% to 78.740. NZDUSD is mostly weaker, falling -0.17% to 0.8098.

Stocks recovered late last week after improved durable goods orders highlighted that consumer spending is slowly recovering in the U.S., further diminishing the case for more easing from the Federal Reserve. Even though investors have increased bets, especially after the FOMC minutes, better month over month data pointed to a slowly expanding economy. Equity indices closed higher, led by the 0.77% rally in the Dow Jones Industrial Average. The S&P 500 and Nasdaq Composite also closed higher, climbing 0.65% and 0.54% apiece. WTI crude oil has soared on closures due to a tropical storm in the Gulf of Mexico and refinery explosion reported in Venezuela. Prices in the meantime have jumped 1.49% from Friday's close to $97.58 per barrel. Gold is also higher, rising to $1678.50 and rapidly closing on the $1680 level.
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