LONDON (SHARECAST) - This is a preview of the issues expected to affect foreign exchange (FOREX) markets in Europe on Thursday.
Cable: Sterling/US dollar
Currency codes: EUR - euro; USD - US dollar; GBP - sterling; JPY - Japanese yen; CHF - Swiss franc; NOK - Norwegian kroner; SEK - Swedish kroner; CAD - Canadian dollar (the loonie); AUD - Australian dollar; NZD - New Zealand dollar
Fed Signals Readiness to Ease Without US Growth Pick-up - Bloomberg
China Veers 'Dangerously Close' to Hard Landing - CNBC
China Case for Stimulus Builds as Manufacturing Weakens - Bloomberg
Eurozone leaders delay Greece aid decision - FT
Brent nears $116 on Fed hopes, shrugs off China data - Reuters
South Africa Mine Protests Spread - WSJ
Gold hits highest since early May on Fed - Reuters
Dollar Drops Versus Majors as Fed Minutes Boost Prospects of Easing - Bloomberg
Many on FOMC Favoured Easing Soon if No Pick-up in Growth - Bloomberg
Fed’s Evans Urges Easing From US to China as Global Economic Risks Mount - Bloomberg
Home resales rise, housing recovery inches along - Reuters
Purchases of New Homes in US Probably Rebounded in July - Bloomberg
US CBO sees worse economic wreckage from "fiscal cliff" - Reuters
Chinese acquisitions in US near record - FT
Asian Stocks Rise as Gold Gains to 16-Week High on Easing Bets - Bloomberg
China factory sector shrinks most in 9 months - Reuters
Beijing Raises Rare-Earth Export Quota - WSJ
China Adds to Visa Demands in Move That Could Slow Tourists - Bloomberg
Australia’s Mining Bonanza Is Over: Resources Minister - Bloomberg
BHP Delays $68B of Projects After Profit Falls; BHP Delays Project Approvals - Bloomberg
Philippines' black market is China's golden connection - Reuters
Greece Faces New Pressure on Cuts - WSJ
Greek Crisis Evasion Comes to Fore as Merkel Meets With Hollande in Berlin - Bloomberg
Russia joins WTO after 19 years of talks - FT
S&P Says a Full Spain Bailout Would Not Affect Ratings - CNBC
French Leaders Return to Tackle Economy - WSJ
Austria's AAA Rating Under Attack From East and West - CNBC
Crisis Hits Swiss Machinery Sector - WSJ
Keynes, the hedge fund pioneer - FT
The Euro Is Already a ‘Zombie Currency’: Expert - CNBC
EUR: The main euro crosses are exhibiting mixed behaviour. EUR-USD has rallied past 1.2500 after doveish Fed Minutes left the door ajar for QE3. It is now trading close to 1.2570. FOMC members have signalled their readiness to ease due to US growth concerns. Meanwhile, EUR-JPY has eased towards 98.00, as we expected, after its recent spike.
GBP: The sterling crosses are shadowing moves in the euro. Cable is now above 1.5900, while GBP-JPY is trading below 125. EUR-GBP has firmed a bit and is trading above 0.7900. Tomorrow we will be paying close attention to the UK’s second estimate of second quarter (Q2) GDP.
CHF: The Swiss franc is rallying against the US dollar, buoyed by the recent appreciation in the euro. USD-CHF yesterday lost the 0.9650 threshold and is now trading close to 0.9560. Meanwhile, EUR-CHF is stuck in its familiar range close to 1.2010.
Nordics: The NOK and the SEK, much as other European currencies, are making gains versus the USD. Yet both Nordic currencies are also paring some of their recent gains against the euro as well. Eurozone debt crisis resolution hopes diminish their attractiveness as a haven.
USD & JPY: The dollar was heavily hit by Fed Minutes showing renewed prospects of Fed easing. The greenback has dipped versus its major counter-parties. USD-JPY yesterday drew a bearish flag pattern and is now trading close to 78.57.
CAD, AUD & NZD: The three dollars are rising against the dollar and the yen. The market seems to buy the case for Chinese monetary stimuli after weak manufacturing figures this morning. HSBC’s flash manufacturing PMI for July reached a 9-month low with new export orders declining at the sharpest rate since March 2009.