Finland’s Finance Ministry considers the next Greek bailout is likely to be finally approved by the week which starts March 12. Currently, all necessary elements to sign an agreement on the 130 billion Euros worth bailout loan are ready, said French Finance Minister, Francois Baroin. However, it is still not clear how much the IMF plans to contribute to the bailout. The pair EUR/USD broke the support level of 1.3200 and currently is trading at 1.3192.
Today is a bank holiday in the United States, therefore most of the market activity will be influenced by factors from abroad. Stock index futures jumped in early trading, as Chinese government decreased the reserve ratio for credit institutions.
UK’s real estate prices increased at the fastest pace in the last 10 years this month. The price jump was supported by the improved confidence and sales-tax holiday provided by the government that finishes in March, reported Rightmove. According to the index of Rightmove, the home prices soared by 4.1% in February on a monthly basis and by 1.4% on an annualized rate.
The official SNB exchange rate for EUR/CHF is 1.2085 today; yield on 10-year Swiss Confederation bonds increased to 0.81%. 3-month LIBOR CHF stands at 0.08%, and is within the target range of 0.00-0.25%. Swiss SMI stock index has gained 0.08% since the opening bell, and is currently fluctuating around 6242 points.
Japan’s trade deficit widened in January as slowing global demand and stronger Yen harmed local producer’s profits and hindered country’s recovery from March earthquake. The trade gap expanded to JPY 1.48 trillion (USD 19 billion) while shipments declined annual 9.3%. Economists questioned by Bloomberg predicted a deficit of JPY 1.46 trillion.
Daily maximum: 1.3276
Daily minimum: 1.3182
EUR/USD left the daily forecast mean (1.3148) intact today as the Greece and the EU members finalize the debt deal. Daily Resistance: 1.3186; 1.3291; 1.3336. Daily Support: 1.3104; 1.2981; 1.2725. Daily Bias: Neutral.
Daily maximum: 105.57
Daily minimum: 104.66
The shared European currency advanced today versus the Japanese yen, leaving the daily level at 104.27 intact as investors await positive resolution of the Greek debt deal. Daily Resistance: 104.95; 105.49; 107.46. Daily Support: 103.72; 102.64; 97.12. Daily Bias: Strongly bullish.
Daily maximum: 1.5879
Daily minimum: 1.5843
The Cable continued its recovery after the housing price index rose today (4.1% act./-0.8% est.). Daily Resistance: 1.5858; 1.5906; 1.5960. Daily Support: 1.5786; 1.5689; 1.5397. Daily Bias: Bullish.
Daily maximum: 79.78
Daily minimum: 79.36
After touching the daily forecast mean (79.36), USD/JPY rebounded today as Japan decided to carry on with the monetary easing policy. Daily Resistance: 79.30; 79.77; 80.29. Daily Support: 79.00; 78.04; 75.51. Daily Bias: Bullish.
Daily maximum: 0.9164
Daily minimum: 0.9089
USD/CHF did not recover today inspite of market participants’ daily expectations (0.9189) as the Swiss Franc appreciated today on brightened EU macroeconomic prospects. Daily Resistance: 0.9167; 0.9097; 0.9199. Daily Support: 0.9109; 0.9085; 0.9012. Daily Bias: Neutral.
Decision day for second Greek bailout despite financing gaps
Euro zone finance ministers are expected to approve a second bailout for Greece on Monday to try to draw a line under months of uncertainty that has shaken the currency bloc, although work remains to be done to make the numbers add up.
U.S. manufacturing sees shortage of skilled factory workers
Unemployment hovers above 9 percent. Foreign competition has thrown many out of work. It is a platitude that this industrial hub, like the country itself, needs more manufacturing work.
Japan trade deficit rises to record level
Japan bears were snarling a little louder on Monday, as trade data for January suggested that the country’s trade balance would remain under pressure this year.