18 December 2012

Posted by Graham Parlane on 18 December 2012

Good morning

Overnight

# The EuoStoxx600 remains stalled, ending barely changed for the 2^nd day in a row, at -0.08%. Currently the S&P500 is up a moderate 0.38% underpinned of course by the FED's extraordinary policy decision of last week.

# Profit taking set in for USD/JPY after a 3 week run higher into the expected landslide win of Mr Abe and his LDP party. As is so often seen, a 'buy the rumour, sell the fact' effect appears in play here. The profit taking set in only after the USD/JPY hit 20 month highs and the NZD/JPY 4 year highs.

# The FED's Lacker said he expects that it will be another three years until the U.S. unemployment rate drops to (the now all important) 6.5 %.

# ECB's Draghi said that the medium-term outlook for the euro zone economy remained "challenging". Weak demand is expected to extend into 2013 and only a gradual recovery is forecast toward the end of that year while interest rates are expected to continue at record lows.

# House Speaker John Boehner reportedly told President Barack Obama that he may accept higher taxes on millionaires in exchange for reduced spending on Medicare and Social Security.

Ahead

# ANZ NZ Business Confidence

# RBA Monetary Policy Meeting Minutes

# China Foreign Direct Investment

# U.K Inflation

# U.S Current Account

# NAHB U.S. Housing Market Index

Cheers G.

BBY (NZ) Limited, a specialist advisor in Futures - FX - CFD - Options - Shares - Gold - Silver - Commodities

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