The US Dollar may continue to push higher as growing Eurozone debt crisis fears stoke safe-haven demand. A French bond auction is in the spotlight.
Talking Points
- US Dollar Gains as Asian Stocks Decline, Stocking Safe Haven Demand
- Australian Trade Balance, Services PMI Data Point to Slowing Growth
- French Bond Auction in Focus as Eurozone Debt Crisis Fears Resurface
- S&P 500 Index Futures Favor Risk Aversion, ADP Jobs Report on Tap
The US Dollar (ticker: USDollar) pushed higher against its leading counterparts in overnight trade as Asian stock exchanges fell, stocking demand for the go-to safe haven currency. The sentiment-linkedAustralian Dollar bore the brunt of the selloff ? down as much as percent against its US namesake ? after the AiG Performance of Service Index printed below the 50 ?boom-bust? level, showing the non-manufacturing sector contracted for a third consecutive month, while the Trade Balance surplus narrowed to the smallest in 9 months as exports to China slumped 15.8 percent. The East Asian giant is Australia?s largest trading partner.
Looking ahead, a quiet economic calendar keeps the focus on Eurozone debt crisis issues, with the spotlight turning to a Frenchbond auction. The currency bloc?s second-largest economy is set to sell 2021-2041 paper, with traders keeping a close eye on average yield levels and bid-to-cover readings ? a measure of demand ? to get a sense of sovereign solvency fears in the region as Eurozone countries face the need to refinance a whopping ?157 billion in maturing debtjust in the first three months 2012.
The 3-month Euribor-OIS spread, a measure of liquidity risk, rose for the first time in a week yesterday while the ECB reported that banks parked a record ?453 billion in its deposit facility yesterday. This means banks remain jittery and reluctant to funnel any of the nearly ?500 billion they borrowed via the central bank?s 3-year LTRO into the real economy. On balance, this points to renewed deterioration in credit markets and may produce a disappointing outcome at the debt sale, weighing on the Euro.
On the sentiment front, S&P 500 stock index futures are trading meaningfully lower in late Asian hours, hinting at the return of risk aversion that offers a lifeline to US Dollar at the expense of stocks-correlated currencies. The US ADP Employment gauge will enter into the picture in the afternoon and may stoke volatility as traders position for Friday?s all-important official jobs report. Expectations call for an increase of 178,000 in December compared with 206,000 recorded in the preceding month, alluding to a slowdown in hiring. Interestingly, forecasts for official overall nonfarm and private-sector payrolls paint the opposite picture, showing hiring will accelerate.
Asia Session: What Happened
| GMT | CCY | EVENT | ACT | EXP | PREV |
| 22:30 | AUD | AiG Performance of Service Index (DEC) | 49.0 | - | 47.7 |
| 23:50 | JPY | Monetary Base (YoY) (DEC) | 13.5% | - | 19.5% |
| 0:30 | AUD | Trade Balance (A$) (NOV) | 1380M | 1650M | 1418M |
| 2:30 | CNY | China HSBC Services PMI (DEC) | 52.5 | - | 52.5 |
| 5:00 | JPY | Vehicle Sales (YoY) (DEC) | 23.5% | - | 24.1% |
Euro Session: What to Expect
| GMT | CCY | EVENT | EXP | PREV | IMPACT |
| 7:00 | EUR | German Retail Sales (MoM) (NOV) | 0.2% | 0.7% | Low |
| 7:00 | EUR | German Retail Sales (YoY) (NOV) | 0.7% | -0.4% | Low |
| 7:45 | EUR | French Consumer Confidence Indicator (DEC) | 80 | 79 | Low |
| 9:00 | EUR | Italian Unemployment Rate s.a. (3Q) | 8.1% | 8.0% | Low |
| 9:00 | EUR | Italian Unemployment Rate s.a. (NOV P) | 8.5% | 8.5% | Low |
| 9:30 | GBP | Purchasing Manager Index Services (DEC) | 51.5 | 52.1 | Medium |
| 9:30 | GBP | Official Reserves (Changes) (DEC) | - | -$249M | Low |
| 10:00 | EUR | Euro-Zone Industrial New Orders (YoY) (OCT) | 3.3% | 1.6% | Low |
| 10:00 | EUR | Euro-Zone Industrial New Orders (MoM) (OCT) | 2.5% | -6.4% | Low |
| 10:00 | EUR | Euro-Zone Producer Price Index (MoM) (NOV) | 0.1% | 0.1% | Low |
| 10:00 | EUR | Euro-Zone Producer Price Index (YoY) (NOV) | 5.2% | 5.5% | Low |
| 10:00 | EUR | France to Sell 2021-2041 Bonds | - | - | High |
Critical Levels
| CCY | SUPPORT | RESISTANCE |
| EURUSD | 1.2796 | 1.3045 |
| GBPUSD | 1.5534 | 1.5666 |
? Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow me on Twitter at @IlyaSpivak
To be added to Ilya?s e-mail distribution list, send a note with subject line ?Distribution List? to ispivak@dailyfx.com
This article was provided by DailyFX.com.
Stay on top of analysts' coverage with American Banking & Market News' daily email newsletter that provides a concise list of analysts' upgrades, analysts' downgrades and analysts' price target changes for each day.Click here to register.
Source: http://feedproxy.google.com/~r/AmericanBankingNews/~3/qNgQQgSme-k/
andrew luck andrew luck love and hip hop 2012 nfl mock draft iowa caucus martin luther king day chris jericho
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন