[B]Intra-Day Market Moving News and Views
05 Jan 2015[/B] [I]01:16GMT[/I]
[B]EUR/USD[/B] - ..... Although the single currency moved quietly above last Friday's fresh 4-1/2 year low of 1.2001 in NZ, price tumbled in thin Australian morning to a near 9-year bottom of 1.1861 (EBS).
Some cited selling to w/end euro-bearish news. Reuters reported the German gov’t believes that the euro zone would now be able to cope with a Greece exit if that proved to be necessary, Der Spiegel news magazine reported on Sat, citing unnamed gov’t sources.
Both Chancellor Angela Merkel n FinMin Wolfgang Schaeuble believe the euro zone has implemented enough reforms since the height of the regional crisis in 2012 to make a potential Greece exit manageable, Der Spiegel reported.
“The danger of contagion is limited because Portugal and Ireland are considered rehabilitated,” the weekly news magazine quoted one gov’t source saying.
In addition, the European Stability Mechanism (ESM), the euro zone’s bailout fund, is an “effective” rescue mechanism and was now available, another source added. Major banks would be protected by the banking union.
It is still unclear how a EZ member country could leave the euro and still remain in the European Union, but Der Spiegel quoted a “high-ranking currency expert” as saying that “resourceful lawyers” would be able to clarify.
According to the report, the German gov’t considers a Greece exit almost unavoidable if the leftwing Syriza opposition party led by Alexis Tsipras wins an election set for Jan. 25.
German Fin Min Schaeuble has already warned Greece against straying fm a path of economic reform, saying any new gov’t would be held to the pledges made by the current Samaras gov’t.
[B]Data to be released this week: [/B]
Japan manufacturing PMI, Germany retail sales, CPI, HICP, Swiss manufacturing PMI, UK construction PMI and U.S. ISM New York index [B]on Monday. [/B]
Australia exports, imports, trade balance, China services PMI, France consumer confidence, services PMI, Italy services PMI, Germany services PMI, UK services PMI, Canada producer prices, U.S. durable goods, factory orders, ISM non-manufacturing PMI and services PMI [B]on Tuesday. [/B]
UK BRC shop price index, Halifax house price, Germany unemployment rate, Italy unemployment rate, EU inflation, unemployment rate, Canada exports, imports, trade balance, U.S. ADP employment, international trade and FOMC minutes [B]on Wednesday.[/B]
Australia building approvals, Germany industrial orders, EU producer prices, retail sales, UK BoE rate decision and Canada new housing price [B]on Thursday. [/B]
Australia retail sales, Japan leading indicator, Swiss unemployment rate, China CPI, PPI, Germany imports, exports, industrial output, trade balance, France exports, imports, industrial output, trade balance, UK industrial output, manufacturing output, trade balance, Canada building permits, unemployment rate, U.S. average earnings, non-farm payrolls, private payrolls, unemployment rate, wholesale inventories and wholesale sales [B]on Friday.[/B]