Intraday Market Thoughts

Flat Markets Await EcoFin Meetings

by Adam Button
Jan 23, 2012 8:11

Meetings continue but no deal on a Greek haircut appears to be imminent as Greece welcomes Troika leaders and asks for another bailout tranche. NZD is the early leader with EUR trailing. The events to watch in Europe are the Ecofin meetings and Eurzone consumer confidence. A few of late Thursday's Premium trades remain in progress, including those cautious longs in EUR & gold.

The euro fell to 1.2850 at the open but has clawed back most of its losses and is trading at 1.2900 on continuing belief that a Greek deal will get done.

Markets are thin to begin the week due to Lunar New Year holidays in China and elsewhere. Chinese markets will be closed throughout the week so developments in Japan, Australia and New Zealand (the RBA meeting is Thursday) will get special attention this week.

Australian producer prices showed lower-than-expected inflation pressures, climbing 0.3% in Q4 compared to the 0.5% consensus. Considering the close correlation between Aussie & PPI & CPI, Wednesdays CPI reading will have major implications for the razon-thin February RBA decision.

At 0900 GMT, finance minister from around the Eurozone will discuss the latest developments in the sovereign crisis at the Ecofin meetings. Headlines surrounding Greece, the ESM bailout fund and new fiscal rules will be front-and-centre. Data is light in Europe (and the United States). The lone indicator of note doesnt come until 1500 when January Eurozone consumer confidence figures are released. The consensus call is for an improvement to -20 from -21.1.

A few trades from Thursdays Premium Intermarket Insights remain in progress, including cautiousl longs in EURUSD and gold. Direct Access to these trades is found here: To subscribe, click here:


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