The approval of Greece’s rescue package has provided European officials with time to persuade investors they are able to implement both fiscal discipline and growth. Italian and Spain borrowing costs fell on the Greek agreement. Yields for 10-year Spanish notes declined to 5.08% compared to 6.7% in November while Italian 10-year borrowing costs diminished below 5.4% compared to 7.1% in December.
Sales of previously owned U.S. houses rose in January to the highest level since May 2010, adding to signs the housing market is regaining its footing. Purchases climbed 4.3 percent to a 4.57 million annual rate, less than forecast, from a revised 4.38 million pace in December that was slower than previously estimated, a report from National Association of Realtors showed today in Washington.
The monetary policy committee at the Bank of England was split 7-2 on the QE3 voting, Wednesday minutes revealed. MPC members David Miles and Adam Posen voted for a £75bn boost, reopening the debate on whether the Bank will add further quantitative easing in May.
The Swiss government said banks’ due-diligence requirements must be extended to prevent lenders from accepting untaxed assets. Past tax problems should be settled, in particular cases of clients living abroad whose assets haven’t been correctly taxed, the government said today in a statement handed to reporters in the capital, Bern.
Most Asian markets ended higher on Wednesday, with Japanese stocks catching a tailwind from the yen’s weakness while mainland Chinese shares gained on hopes for a relaxation in policy toward the property sector.
Daily maximum: 1.3263
Daily minimum: 1.3211
EUR/USD continued the rally on the Greek bailout package approval, breaching the daily forecast mean (1.3237). Daily Resistance: 1.3290; 1.3443; 1.3590. Daily Support: 1.3184; 1.2981; 1.2725. Daily Bias: Bullish.
Daily maximum: 106.32
Daily minimum: 105.49
The common European currency moved higher today on the Greek debt deal confirmation and pierced the 105.53 target today. Daily Resistance: 106.01; 106.50; 107.46. Daily Support: 105.05; 102.64; 97.12. Daily Bias: Strongly bullish.
Daily maximum: 1.5813
Daily minimum: 1.5649
The British pound commenced a bearish reversal today after hitting the daily forecast mean (1.5797) as the Bank of England monetary policy committee (7-0-2 act./9-0-0 est.) voted to continue another quantitative easing to support the UK economic recovery. Daily Resistance: 1.5837; 1.5906; 1.5960. Daily Support: 1.5745; 1.5689; 1.5397. Daily Bias: Neutral.
Daily maximum: 80.37
Daily minimum: 79.77
USD/JPY pursued moving in the upward direction today on a increase of January existing home sales in the US, leaving the daily forecast mean (79.71) intact. Daily Resistance: 79.87; 80.14; 81.08. Daily Support: 79.57; 78.04; 75.51. Daily Bias: Strongly bullish.
Daily maximum: 0.9137
Daily minimum: 0.9104
USD/CHF slightly rose today, crossing the 0.9119 daily market participants mean on better-than-expected US home sales and declined inventories. Daily Resistance: 0.9153; 0.9295; 0.9493. Daily Support: 0.9087; 0.9001; 0.8823. Daily Bias: Bearish.
Euro-Zone Business Activity Shrinks Unexpectedly
Business activity in the euro zone contracted unexpectedly in February, reviving fears that the region is heading for recession.
Existing home sales at 1-1/2 yr-high, supply falls
U.S. home resales surged in January to a 1-1/2 year high and the supply of properties on the market was the lowest in almost seven years, pointing to a nascent housing recovery.
China’s factory activity shrinks further
China’s factory activity shrank again in December as demand at home and abroad slackened, a purchasing managers’ survey showed on Friday. This will be seen to reinforce the case for pro-growth policies to underpin the world’s second-largest economy.