Economic Events: (GMT)
09:30 GBP Services PMI 53.5 54.0
The Services Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the services sector. A reading above 50 indicates expansion in the sector; a reading below 50 indicates contraction. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.
10:00 EUR Retail Sales (MoM) 0.4% -0.8%
Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
EUR/CHF Fundamental Analysis February 3 , 2012, Forecast
Analysis and Recommendations:
EUR/CHF is trading 1.2052 slightly up. The pair are stying in a very tight channel, bordering on the 1.20 level set by the SNB. The movement is simple reaction to the fluctuation of the euro. The CHF fundamentals do not seem to have an effect, as the Swissie did not react of the negative trade balance data today.
At this writing it is the most confusing news, which can not be interpreted. Juncker says one thing, Rehn says something different and new reports are completely different. The latest news is stating that European officials this evening dashed hopes of a fast settlement between Greece and its private bondholders due to the opposition of some of the Greek political leaders towards additional spending cuts demanded by the lenders as well as a disagreement between the IMF and Germany on the involvement of the ECB in the bond swap. Friday will be all about he said, she said.. deal or no deal.
Spain’s Treasury auctioned EUR4.5 billion of medium term debt earlier, at much lower yields than previously.Investors purchased EUR2.52 billion of three-year bonds at a yield of 2.8%, down from 3.38% in January and EUR1.05 billion of five-year bonds at a yield of 3.5%, compared to 5.5% last month.
France auctioned EUR8 billion of government debt in an auction which met with solid investor demand and lower yields.
Economic Data Today ( key better than expectedworse than expected at forecast )
NZD ANZ Commodity Price Index (MoM) 1.2% -0.8%
AUD Building Approvals (MoM) -1.0% 2.1% 10.1%
AUD Trade Balance 1.71B 1.20B 1.34B
CHF Trade Balance 2.07B 2.85B 2.95B
GBP Construction PMI 51.4 52.9 53.2
EUR PPI (MoM) -0.2% -0.1% 0.2%
USD Challenger Job Cuts (YoY) 38.9% 30.6%
USD Nonfarm Productivity (QoQ) 0.7% 1.0% 1.9%
USD Initial Jobless Claims 367K 373K 379K
USD Unit Labor Costs (QoQ) 1.2% 0.9% -2.1%
USD Continuing Jobless Claims 3437K 3565K 3567K
Scheduled Sovereign Bond Sales
Feb 06 10:10 Norway Bond auction
Feb 07 09:00 Netherlands Eur 5.0bn Jul 2022 DSL
Feb 07 10:10 Greece 6M T-bill auction
Feb 07 10.30 UK Auctions 1.75% 2017 conventional Gilt
Feb 07 15:30 UK Details gilt auction on Feb 16
Feb 07 18:00 US Auctions 3Y Notes
Feb 08 10:10 Sweden Nominal bond auction
Feb 08 10:30 Germany Eur 4.0bn Feb 2017 Bobl
Feb 08 10:30 Swiss Bond auction
Feb 08 16:30 Italy Details BOT auction on Feb 13
Feb 08 18:00 US Auctions 10Y Notes
Feb 09 10:10 Sweden Sek 0.75bn I/L bond auction
Feb 09 15:30 Sweden Details I/L bond auction on Mar 23
Feb 09 16:00 US Announces auctions of 30Y TIPS on Feb 16
Feb 09 16:30 Italy Details BTP/CCTeu auction on Feb 14
Feb 09 18:00 Italy Auctions 30Y Bonds
Feb 10 11:00 Belgium OLO auction
Originally posted here
