Risk trades extended gains in London and the EUR was the major beneficiary in the currency space. News reports that Germany is prepared to assist with the looming financial meltdown in the region looks to have propped up confidence in size. European equities are up modestly while US stock futures are suggesting a strong open in the cards.
EUR/USD added more than 95 pips in the session and is sitting near the 1.27 intraday highs just ahead of the NY open. EUR/JPY meanwhile added about 100 points towards the 119 area. This left USD/JPY pretty well unchanged by the 93.60/70 zone. The price action in other pairs was led dramatic. Cable rose about 50 pips towards the 1.44 area while USD/CAD shed about -30 pips into 1.25 as oil prices rallied back above $36/bbl.
The question is whether the US will follow Europe and give up gains - with top tier economic data due up this morning - or whether risk trades will extend and send EUR even higher. Gold is only down -$5 to 980/oz and suggests risk aversion still lurks in the background here. The most noteworthy releases are US initial jobless claims and the Philly Fed manufacturing index. Look for weaker than anticipated results to see risk aversion return.
Upcoming Economic Data Releases (NY Session) prev est
- 2/19 13:30 GMT CA Leading Indicators MoM JAN -0.60% -0.70%
- 2/19 13:30 GMT US Producer Price Index (MoM) JAN -1.90% 0.20%
- 2/19 13:30 GMT US PPI Ex Food & Energy (MoM) JAN 0.20% 0.10%
- 2/19 13:30 GMT US Producer Price Index (YoY) JAN -0.90% -2.60%
- 2/19 13:30 GMT US PPI Ex Food & Energy (YoY) JAN 4.30% 3.80%
- 2/19 13:30 GMT US Initial Jobless Claims 14-Feb 623K 615K
- 2/19 13:30 GMT US Continuing Claims 7-Feb 4810K 4810K
- 2/19 15:00 GMT US Leading Indicators JAN 0.30% 0.00%
- 2/19 15:00 GMT US Philadelphia Fed. FEB -24.3 -25
- 2/19 15:30 GMT CA Bank of Canada Releases Review
- 2/19 17:00 GMT UK Bank of England's Gieve to Make Speech
- 2/19 18:15 GMT US Fed's Lockhart Speaks on U.S. Economy
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