Forex Signals

With heartfelt apologies to Monty Python’s “Galaxy Song” (from “Meaning of Life”)
The Euro Debt Galaxy SongJust remember that you’re standing on a debt that’s just evolvingAnd revolving at 3 trillion euros a yearThat’s interest of 5k a second, so it’s reckonedA sum that is the drain of all our powerThat sum and you and me, [...]

Source: ForexYard

Weekend risk is back on the table as Spain returns to the headlines.
Traders worry Socialists in Spain will be defeated in both local and regional elections and has created unease for euro bulls. A new government in Spain might be more inclined to reveal government financial inconsistencies and previous shortfalls in the Spanish budgets.
European [...]

Risks include:

Sovereign debt and associated imbalances
Unsustainable patterns of demand

South Korean fx authorities seen buying dollars to stem won’s strength.  Said to have bought estimated $2 billion – Traders
BOJ Dep Gov Nishimura: No change in BOJ view supply chains will recover from June-July
Ifo April German business climate index 110.4, pretty much in line with median forecast 110.5
Chinese Ministry of Finance:  China in talks to [...]

Riksbank raises key repo rate 25 bps, to 1.75% from 1.5%
Thai central bank also raises rates 25 bps to 2.75% from 2.5%
Spain’s treasury sells 2487 mln 2021 bond, 885 mln 2024 bond, top end of 2.5-3.5 bln target range. Lifts euro
Bank of England minutes: MPC voted 6-3 to hold rates steady, 8-1 to to hold QE [...]

ECB buys periphery bonds
Japan March consumer confidence 38.6, down from 41.2 in February. Record fall
ECB’s Trichet: We will not accept second-round effects
ECB’s Stark: ECB rates still “very low” even after hike to 1.25%
ECB’s Wellink: Must stay alert on inflation, otherwise risks of falling behind the curve
German FinMin advisor Fuest:  Greek debt restructuring is inevitable
German public [...]

Yesterday I wrote that the situation in Europe was starting to come to a head as Portugal rejected austerity measures, forcing their PM to resign. Well the two-day European Summit that was supposed to provide clarity into the process for further bailouts became more complicated.
Germany pushed other leaders to reduce the amount that they put [...]

German Q4 GDP confirmed at +0.4% q/q, +4.0% y/y, as expected
Euro zone February economic sentiment 107.8, up from revised 106.8 in January (previous 106.5), better than median forecast 106.8.  Consumer inflation expectations 25.7, sharp rise from 20.9 in January.  The read is significantly above the long-term average since 1990 of 20.6 points and will be [...]

Euro zone February manufacturing PMI 59.0, up from 57.3 in January and better than median forecast of 57.3. Services PMI 57.2, up from 55.9 in January and better than median forecast 56.0
Ifo February German business climate index 111.2,  better than median forecast 110.3
Ifo economist Abberger:  Upturn in Germany is robust, in top form
BUBA:  Using EFSF [...]

The recent statement by the ECB representatives gives a serious blow to US dollar. Dollar closed at a lower rate at the end of the last trading week. The roots of this decrease can be traced back to the upsets in Chinese market. At the beginning of this trading week, China [...]