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The Swiss franc depreciated vis-à-vis the U.S. dollar today
as the greenback tested offers around the CHF 1.0720 level and was supported around the CHF 1.0610 level. Data released in Switzerland today saw March consumer price inflation up 0.1% m/m and 1.4% y/y. Swiss National Bank is said to have intervened in the market last week by selling Swiss francs in what is estimated to have been a massive operation. Swiss monetary, financial, and government officials have been warning that they will not tolerate a further increase in the franc in recent weeks but many traders speculated the central bank would not intervene to weaken the franc on account of growth in the Swiss economy. While forecasts for economic growth and inflation have both been upwardly revised in recent weeks, SNB’s latest probable intervention underscores their commitment to preserving an export-driven recovery. U.S. dollar offers are cited around the CHF 1.0920 level. The euro moved lower vis-à-vis the Swiss franc as the single currency tested bids around the CHF 1.4315 level while the British pound moved higher vis-à-vis the Swiss franc and tested offers around the CHF 1.6335 level.
Apr-7-2010 04:43:16 PM
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The British pound depreciated vis-à-vis the U.S. dollar today
as cable tested bids around the US$ 1.5125 level and was supported around the $1.5305 level. Cable spun lower after Prime Minister Brown called for a general election on 6 May and Parliament was dissolved. The consensus is that the election could end in a hung Parliament even if challenger Cameron of the Tory party unseats the unpopular Brown. Data released in the U.K. today saw March construction PMI improve to 53.1 from 48.5 in February. Cable bids are cited around the US$ 1.4455 level. The euro moved lower vis-à-vis the British pound as the single currency tested bids around the £0.8765 level and was capped around the £0.8860 level
Apr-7-2010 04:43:00 PM
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The yen appreciated vis-à-vis the U.S. dollar today
as the greenback tested bids around the ¥93.65 level and was capped around the ¥94.35 level. Finance Minister Kan reported Bank of Japan Governor Shirakawa is “doing a very good job.” Financial services minister Kamei reported the government will need to enact additional fiscal measures to stop the strong deflationary pressures that are evident. Japan’s ability to implement additional budgetary stimuli is rather limited given the massive amount of outstanding Japanese government bonds. Data released in Japan today saw the February coincident index improve to 100.7 from 100.3 while the February leading economic index improved to 97.9 from 96.7. The central bank may increase its assessment of the Japanese economy on account of an improvement in the export sector and the recent improvement in the Tankan survey of corporate sentiment. The Nikkei 225 stock index lost 0.50% to close at ¥11,282.32. U.S. dollar offers are cited around the ¥96.85 level. The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥125.35 level and was capped around the ¥127.35 level. The British pound moved lower vis-à-vis the yen as sterling tested bids around the ¥142.05 level while the Swiss franc moved lower vis-à-vis the yen and tested bids around the ¥87.50 level. In Chinese news, the U.S. dollar was unchanged vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8257 in the over-the-counter market. The big news involving China continues to be that the Obama administration is delaying the release of a report due 15 April that could have potentially labeled China a currency manipulator. The move to delay the release of the report could signal negotiations are ongoing between the two countries or could signal China may let the yuan appreciate further in the coming days. Chinese leadership will visit Washington, D.C. on 12-13 April. It was reported today that China’s net foreign debt totaled US$ 428.6 billion at the end of 2009, up 14% y/y.
Apr-7-2010 04:42:41 PM
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