http://www.ashraflaidi.com/forex-news/?a=3295
May 17, 2012 07:47 ET :
IMT ARCHIVES
USD pushes higher across the board but the volatility has been slightly smaller as German, French and Swiss banks are closed today in observance of Ascension Day. European equities are losing about 1% and the relative strength winner is JPY while GBP lags.
Greek uncertainty continues to punish the common currency as the current state of paralysis will continue at least until new elections on June 17th. In a new development, the ECB no longer offers liquidity to some Greek banks which it considers insolvent. According to Reuters, bank run continues as Greeks withdrew hundreds of millions of EUR recently due to growing fears that the country might be forced out of the Eurozone. According to some estimates, disorderly exit could come with a price tag of as much as USD 1 trillion. German bund yield shit new low
Spain reached the upper limit of its EUR 1.5 to 2.5 bln target range as it sold various bonds totaling EUR 2.49 bln. All average yields rose but cover improved. The auction came only a few hours after Q1 GDP was confirmed at -0.3% q/q and -0.4% y/y. Spanish 10 year yield rose to 6.35% earlier during the session and now trades around 6.32%.
The US session will bring jobless claims at 8:30 am ET that are seen only a little changed compared to last week at 368K from 367K followed by Philly FED index at 10:00 am that is expected to rise in May to 10 from April's 8.5. April leading indicators are anticipated to rise only 0.1% from previous 0.3%.
Canadian data includes international securities purchases that are seen lower at CAD 8 bln in March from previous CAD 12.5 bln and wholesale sales which should rise 0.3% from previous 1.6%.
The market could also react to a pre G8 meeting video conference among key European leaders that is according to Italian government sources scheduled to start around 3:30 GMT.
Tuesdays Intermarket Insights 6 charts are on EURUSD Option Volatility, EUR Volat vs EUR cash, S&P500, Dax Weekly, Gold Monthly vs. Weekly. Shorts in US crude are in progress. Subscribers can click here for direct access: http://ashraflaidi.com/ products/ sub01/ access/ ?a=636 Nonsubscrobers can click here: http://ashraflaidi.com/ products/ sub01/
Patrik Urban
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