“The euro zone is far from out of the economic woods and faces a hard slog to get back to sustained growth”
– Howard Archer, economist at IHS Global Insight
European services and manufacturing output unexpectedly shrank in February, reviving fears the 17-nation currency bloc is heading towards a recession.
“I don’t think we’re seeing a full-fledged recovery in housing”
– Michelle Meyer, a senior economist at Bank of America Corp.
U.S. home sales rose in January to the highest level since May 2010, a sign the housing market is regaining its footing.
“Recent data on the domestic and international economies had on balance been more positive than might have been anticipated towards the end of 2011”
– Monetary Policy Committee members
Monetary Policy Committee members were split over the size of their latest economic stimulus, showed the minutes of the February 8-9 meeting published on Wednesday.
CHF
“Industrial activity in the major European Union periphery countries is in a contraction mode”
– Annalisa Piazza, a London-based analyst at Newedge Group
Swiss stocks declined for a second day after a report showed Euro zone business activity shrunk in February.
JPY
“Investors are keeping an eye on the yen and bargain hunting”
– Naoki Fujiwara, a fund manager at Shinkin Asset Management Co.
Japanese stocks rose on Wednesday, led by carmakers including Toyota Motor Corp. Toyota edged higher 1.8 per cent to 3,380 yen.
“For now, we are likely to remain captured within a $1.3180-$1.3280 range, with only a break of $1.3150 or $1.3322 signifying accelerated break-out risks”
– CIBC (based on WSJ)
Today EUR/USD currency pair is likely to be traded frat. A tough resistance zone at 1.3300/22 should contain intraday rallies and send the pair down to 1.2974.
“Investors remain cautious about a possible rebound in the yen”
– RCM Japan Co. (based on Bloomberg)
EUR/JPY’s outlook remains bullish. The pair is presently overcoming 105.75/106.80 resistance area and will aim for 107.20 (200 day ma) next.
“Markets were wrong-footed after expectations of QE had been scaled back”
– FXPro (based on Reuters)
Despite the Cable halting near a support at 1.5645, the bearish bias persists.
“The yen will strengthen unless Japan is going to continually step up and do more [easing]”
– Deutsche Bank (based on WSJ)
In the short-term USD/JPY currency couple is expected to close above a resistance area at 79.93/80.25 and continue advancing toward 86.85, which is a long-term target.
“Industrial activity in the major European Union periphery countries is in a contraction mode”
– Newedge Group (based on Bloomberg)
Even though a support at 0.9080/66 is anticipated to hold, we cannot rule out a drop down to 0.8960, which guards 0.8787/68 (200 day ma)
German Business Sentiment May Reach High
German business confidence probably rose to the highest in seven months in February as progress in taming Europe’s debt crisis tempered the risk of a recession.
Obama urges corporate tax cut, closing loopholes
President Barack Obama made an opening offer in what could be a long negotiation with corporate America on Wednesday, putting forward his first detailed plan to cut the corporate tax rate.
Australia to hold national leadership vote
Australian Prime Minister Julia Gillard called a leadership vote on Thursday, with the man she deposed expect to challenge her in a bid for power, drawing months of speculation and infighting within the ruling party to a head.