Economic Events:
03:00 EUR French Manufacturing PMI 49.3 48.9
03:30 EUR German Manufacturing PMI 49.1 48.4
04:00 EUR Manufacturing PMI 47.4 46.9
The Manufacturing Purchasing Manager’s Index (PMI) measures the activity level of purchasing managers in the manufacturing 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 EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
05:00 EUR Industrial New Orders (MoM) -2.2% 1.8%
Industrial New Orders measures the change in the total value of new purchase orders placed with manufacturers. It is a leading indicator of production.
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.
There are no economic events scheduled in Switzerland.
EUR/CHF Fundamental Analysis Jan. 24, 2012, Forecast
Analysis and Recommendations:
EUR/CHF is trading 1.2073. in a surprised show of strength today, the euro surged pushing up by a EU report showing a boost in consumer confidence filed today, a leading indicator that predicts consumer spending, and plays a major role in overall economic activity.
Again, there have been promises of deal with creditors in Greece, but at this writing it is not clear if there is a deal or isn’t a deal, the EU leadership seems to think that a deal is doable, which has pushed the euro. Aided by a succesful German bond sale, the euro is showing confidence against all its trading partners.
IMF Christine Lagarde said euro zone governments should incorporate the region’s exiting bailout fund, the European Financial Stability Fund, into the European Stability Mechanism, increasing the size of the permanent bailout fund in order to restore investor confidence in the region.
Investors seemed to like this idea helping sustain the euro surge. Whereas the sterling, fell against the euro, with little economic support and continued worried about high unemployment in the UK
The pair have been trading strangely today, but a lot can be attributed to the possibility of the SNB interveening if the pair drops below the 1.20 level, if the collective market wishes to break under 1.2000 there is little long-term effect that the SNB can exert.
Upcoming Govt Bond Sales Dates
Jan 23 12:00 Norway Details bond auction on Jan 30
Jan 24 09:30 Netherlands Eur 1.5-2.5bn Jan 2013 & Jan 2042 DSL
Jan 24 09:30 Spain Auctions 3 & 6M T-bills
Jan 24 16:30 Italy Details CTZ/BTPei on Jan 26 & BOT on Jan 27 &
Jan 24 18:00 US Auctions 2Y Notes
Jan 25 10:10 Sweden Nominal bond auction
Jan 25 10:30 Germany Eur 3.0bn 3.25% Jul 2042 Bund
Jan 25 16:30 Italy Details BTP/CCTeu on Jan 30
Jan 25 18:00 US Auctions 5Y Notes
Jan 26 10:10 Italy Auctions CTZ/BTPei
Jan 26 18:00 US Auctions 7Y Notes
Jan 27 10:10 Italy BOT auction
Originally posted here
