Economic Events: (GMT)
It is a quiet day around the world with very little in the way of economic events on Tuesday
15:00 USA Fed Chairman Bernanke Testifies
Federal Reserve Chairman Ben Bernanke (February 2006 – January 2014) is to testify on the economic outlook and recent monetary policy actions before the Joint Economic Committee, in Washington DC. The testimony is in two parts; the first is a prepared statement, then the committee conducts a question and answer session. The Q&A portion of the testimony can see heavy market volatility for the duration.
GBP/USD Fundamental Analysis February 7, 2012, Forecast
Analysis and Recommendations:
The GBP/USD is currently trading at 1.5780 down from the opening at 1.5819
In the UK mid-sized retailers saw their sales rise 0.2 percent in January, according to BDO LLP’s High Street Sales Tracker. An additional report by PriceWaterHouseCoopers found U .K. households reduced their unsecured borrowing by an average 355 pounds during 2011. It now stands at 8,000 pounds per household. These minor reports gave some bouyancy to the Sterling. The Pound rose versus its partners as risk appetite dominated market sentiment after Service PMI metrics pushed up the GBP. According to reports, Services PMI came in at 56.0 showing strong expansion in end of the year.
Investors worried about Greece were more concerned with a safe haven then in good data in the UK, but kept losses to a minimum
The euro continues to fall against all its trading partners. Combining a fall in GDP and unnerving news from Greece and comments from the EU, investors are pulling up stakes. News from Greece was not promising. Greece failed to agree on new austerity measures across political parties yesterday, a requirement for the proposed bailout to avoid default in March. There was some progress on bank recapitalization. Overcoming the political realities of further austerity after almost 5 years of recession is proving very difficult. From Reuters News.
There cannot be a new program for Greece unless the conditions of the troika are met,” Merkel said at a joint press conference here with Sarkozy, referring to the European Commission, the ternational
Monetary Fund and the European Central Bank
The EU’s statistics data on government debt to GDP ratios in the euro zone.for the 17 countries fell slightly to 87.4% of GDP. The ratios for countries in need of EU/IMF funding saw thier ratios rise, however. Portugal, Greece, and Ireland (PIIGS) all showed an increase in the debt to GDP ratio, providing more evidence that austerity measures cannot solve the debt crisis.
Economic Data results prior trading day ( key better than expected worse than expected at forecast )
AUD MI Inflation Gauge (MoM) 0.2% 0.5%
AUD Retail Sales (MoM) -0.1% 0.2% 0.1%
AUD ANZ Job Advertisements (MoM) 6.00% -0.60%
IDR Indonesian GDP (YoY) 6.5% 6.5% 6.5%
TWD Taiwanese CPI (YoY) 2.4% 1.6% 2.0%
EUR Sentix Investor Confidence -11.1 -14.6 -21.1
EUR German Factory Orders (MoM) 1.7% 0.5% -4.9%
Scheduled Sovereign Bond Sales
Feb 01 10:10 Sweden Auctions T-bills
Feb 01 10:30 Germany Eur 5.0bn 2.0% Jan 2022 Bund
Feb 01 10:30 Portugal Eur 0.75-1.0bn 3M T-bill
Feb 01 10.30 UK Auctions 5.0% 2025 conventional Gilt
Feb 01 15:30 Sweden Details nominal bond auction on Feb 08
Feb 01 16:00 US
Announces details of 3Y Notes on Feb 07, 10Y Notes on Feb
08 & 30Y Bonds on Feb 09
Feb 02 09:50 France OAT Auction
Feb 02 10.30 UK Auctions 0.125% 2029
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