Forex Signals

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 [...]

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 [...]

U.S. Treasury Secretary Geithner: Sees confidence at Davos that worst of crisis is over
EU gives details on talks over fund – WSJ
Finland PM:  Should concentrate on making the EFSF function better.  Funds from EFSF and IMF enough
French EconMin Lagarde: Improving rescue fund a question of efficiency, not size
China’s Premier Wen: Will continue to support Europe [...]

German FinMin Schaeuble:   Sees no need at present to discuss increase in funding for EU rescue fund - Radio
ECB’s Orphanides: ECB’s statement not “overly hawkish”
France’s Lagarde: EFSF should be ‘replaced and reinforced’
Buba:  German GDP outlook for Q1 and beyond has considerably improved
OPEC’s Badri: Oil market is very well supplied
Yen may force Toyota to consider production shift [...]

EU executive says national authorities should get powers to write down senior debt at ailing banks – Draft paper
Euro zone December services PMI 54.2, down from 55.4 in November, but better than flash estimate of 53.7
Swiss central bank refuses to touch Irish state bonds – Irish Independent
For Spain, real estate outlook appears bleak – WSJ
Portugal [...]

Overnight in Asia, Bank of Korea intervened buying USD/KRW, Bank of Thailand in buying USD/THB. Both seen diversifying reserves during European session
French December consumer confidence indicator -36, down from downwardly revised -33 in November (prev -32). Weaker than median forecast of -31
Spain’s Zapatero: To cut 2010 deficit by a little more than expected
German December s.a jobless [...]

China C.Banker Zhou:  To maintain basic stability in prices in 2011
UK Nationwide  December house prices +0.4% m/m, +0.4% y/y, stronger than median forecasts of -0.2%, -0.3% respectively
China’s President Hu:  Will ensure stable, fast growth next year.  Global recovery will remain difficult
China slows as tightening start to bite – AEP at The Telegraph
Faber says long-term US [...]