Share This Story
Forex Blog - European Market Update: Swiss Producer & Import Prices Slightly Ahead
*** ECONOMIC DATA ***
Â·GE May Producer Prices: M/M 1.0% v 0.9%e || Y/Y 6.0% v 5.8%e
Â·FR Q1 Final Wages: 1.1% v 1.1%e
Â·SZ May Producer & Import Prices: M/M 1.2% v 0.9%e || Y/Y 3.9% v 3.6%e
Â·IT Apr Industrial Orders: M/M 1.2% v 0. 4%e || Prior revised from -0.8% to
-0.5% |||| Y/Y 12.8% v 4.7%e
Â·IT Apr Industrial Sales: M/M 2.2% v 1.4%e || Prior revised from -1.6% to -1.5%
|||| Y/Y 13.9% v -4.3% prior
Â·IT May Trade Balance Non-EU: -â‚¬1.77B v -â‚¬1.78B prior
Â·*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***
Â·In equity news overnight Lehman cut its earnings estimates for the European
Banking Sector, noting that European banks face extended revenue weakness.
Lehman also said that UBS [UBSN.SZ] may post Q2 charges of $5.5B. Kloeckner
[KCO.GE] guided FY08 sales up â€śat least 10%,â€ť implying â€śat least â‚¬6.93Bâ€ť below
expectations of â‚¬7.22B. The company noted that its acquisition-based strategy
remains the focus in 2008.
Â·In the newspapers the Wall Street Journal wrote overnight that CIE Siderurgica
Nacl (CSN) may sell a stake in its iron ore unit to a consortium which includes
China's sovereign wealth fund. According to
Expansion Acconia [ANA. SP] and ACS [ACS.SP] won a $1.5B Canadian contract.
Â·In energy news overnight Venezuela's President Chavez said that his country
will not send oil to European countries that pursue the anti-immigration
directive. Morgan Stanley commented on China's fuel price increase. Morgan Stanley
believes that the action will not lead to lower demand because it was aimed at
providing financial assistance to oil refiners and power companies. The
Nigerian Oil Minister said that he sees Royal Dutch Shell's [RDSA.UK] Bonga
Field back online "very soon". The minister also noted that long-term
supply concern is driving oil speculation. Saudi Arabian officials said
overnight that they remain committed to stability of oil markets, adding that
they seek a balance of supply and demand. Officials reiterated their end-2009
target production rate of 12.5M bpd.
Â·In fixed income related news, according to the Wall Street Journal the Fed and
SEC are nearing a joint oversight agreement for US investment banks. Under the
plan both bodies would be able to share information.
Â·The USD drifted lower during the European session on Friday as Commodities
continued to be the real focus. Oil was steady following China's announced price increase for retail
fuel prices. The NY Times reported that Israel carried out major military
exercise earlier this month that seemed directed at taking out Iran's nuclear
facilities. OIL and Crude were both marginally firmer. The CHF was a bit firmer
on safe-haven flows and aided by May import price data. The USD/CHF is at 1.04
while the EUR/CHF hovered around the 1.6190 level. Dealers noted that various
stories have been reported earlier this month that Israel was perhaps preparing for a strike at Iran's enrichment program.
Â·On the speaker front the Bank of Canada's Carney said overnight that the BOC's
current policy is appropriate to achieve the central bank's 2.0% CPI target.
Carney noted that the BOC can achieve their inflation target with a flexible FX
rate, adding that risks to inflation are evenly balanced. Carney reiterated
that inflation may breach 3.0% in 2008, and said that he sees more
disinflationary impact from the strong CAD. Insee revised France's Q2 GDP estimate to 0.2% from 0.3%,
noting that France's 2008 inflation is seen peaking at
3.6%. Insee forecasts that France's inflation rate will drop to 2.8% by
December, and forecasted 2008 GDP growth of 1.6%. The ECB's Bini Smaghi said in
the Financial Times that commodity prices are a long-run problem. According to
the Brussels Summit Statement European Leaders say food and oil price measures
must be short- term, noting that second round wage and price effects should be
Â·*** NOTES ***
Â·According to the New York Times citing American officials a military exercise
carried out by Israel appears to have been a rehearsal for a bombing attack on
nuclear facilities in Iran. As Iranian defiance on the nuclear front continues
further developments on the geopolitical front may be worth watching.
Â·Reminder that it is triple witching day today, therefore we could see
Legal disclaimer and risk disclosure
All information provided by Trade The News (a
product of Trade The News, Inc. "referred to as TTN hereafter") is
for informational purposes only. Information provided is not meant as investment
advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed
reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete
2. Information can be mistakenly re-released or be
delayed, 3. Information may be incorrect, misread,
misinterpreted or misunderstood 4. Human error is a business risk you are
willing to assume 5. Technology can crash or be interrupted without notice 6.
Trading decisions are the responsibility of traders, not those providing
additional information. Trade The News is not liable
(financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities
involves a high degree of risk, and financial losses can and do occur on a
regular basis and are part of the risk of trading and investing.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."