23 January 2013

Posted by Graham Parlane on 23 January 2013

Good morning

Overnight

# In relatively quiet trading global equity markets retained their robust risk profile, the EuroStoxx600 ending flat at -0.04% whilst at time of writing the S&P500 was up a moderate +0.34%.

# The JPY was the biggest mover in currency markets gaining more than 1.5% against the USD in the post BOJ wash up. From around 90.00 yesterday the USD/JPY fell as low as 88.37. From our standpoint here it appears that the BOJ have delivered as much as could have realistically been expected (adopting the 2% inflation target) and as such the overnight move has the smell of a classic buy the rumour, sell the fact about it.

# Commodities rose to a 3 month high after the BOJ easing action. The CRB Index rose nearly 1% as the Japanese measure compounds the other global central bank actions aimed at generating more economic activity. Crude rose to a 4 month high, Gold to a 1 month high whilst Copper advanced to its highest level in a week.

# The EUR/USD pair was volatile. After an early sell off to 1.3268 the pair gained 100 points on an extraordinarily strong German ZEW survey. The measure of business sentiment rose to 31.5 from a previous 6.9 and 12.0 expected. The reading was the highest since mid-2010 and potentially signals the direction of Eurozone data this year i.e. outperformance.

# The White House said President Barack Obama "wouldn't stand in the way" of a move to extend U.S. borrowing authority until May 19, removing a potential hurdle for lawmakers seeking to extend the debt ceiling.

# U.S. Existing Home Sales unexpectedly fell in December, dropping 1% although the rate of sales was the second highest since Nov 2009.

Ahead

# Australian Q4 CPI

# China CB Leading Index

# UK MPC Meeting Minutes

# UK Unemployment

# Bank of Canada Interest Rate statement

Regards G.

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

Tags: BOJ, Broker, CFD trading, CFDs, Commodities, Copper, Crude Oil, Currencies, Debt, EUR, EuroStoxx, EURUSD, Foreign Exchange, FX, FX trading, Germany, Gold, Gold investment, Gold trading, Home Sales, Japan, JPY, Other, Precious Metals, S&P, Trader, US, USD, USDJPY, ZEW