Italian yield declines; German and Eurozone ZEW indices improve; solid Spanish auction; UBS to charge negative interest on CHF accounts. Focus turns to trade deficits from US and Canada. For non-Premium members, here is the direct link to the 3 EURUSD charts helping to make the case for going long EURUSD 90 mins before Fridays release of the NFP, rather than shorting the pair.
Italian politics was pushed aside as markets concentrate on the latest data. Italian 10 year yield opened at 4.80% and currently trades around 4.74%.
The common currency pushed higher after German ZEW economic sentiment bested expectations and rose to 6.9 in December from previous -15.7. This is the first increase after six months of negative readings. Current conditions improved to 5.7 from 5.4. Eurozone equivalent rose to 7.6 from -2.6. EURUSD trades around 1.2990.
Spain had a solid auction today as it sold 12 and 18 month bills totaling EUR 3.89 bln vs. EUR 2.5-3.5 bln target. Both average yields declined but bid to cover was mixed.
EURCHF rose from 1.2080 to 1.2125 on news that UBS will also begin charging negative interest rate on CHF holdings beginning 21st December. UBS will apply the charge on individual account basis.
Up ahead are trade deficits from both the US and Canada. During October the US deficit is expected to widen to USD 42.7 bln from previous 41.5 bln and the Canadian deficit is seen widening to CAD 1.2 bln from previous CAD 0.8 bln. The two day FOMC meeting gets underway.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id
No comments:
Post a Comment