Vasilis Tsaprounis
Independent Analyst
Good Morning,
- Euro flounders at Yearly Lows as likelihood of ECB QE increases...
- Asia Equities Update: Topix 1409.61 (+2.42%), Nikkei 225 17621.40 (+2.39%), Hang Seng 23116.63 (+1.25%), Shanghai Comp 3108.60 (+1.67%).
- USD outperformed against its leading counterparts Friday. JPY +0.55%, EUR +0.46%, CHF +0.45%, AUD +0.43%, GBP +0.28%, CAD +0.21%, NZD +0.04%. Most importantly. ….USdollar DXY weekly rsi > 70 for 16 consecutive weeks - this happened once for ICE USD index...in 1997.
-ECB's Constancio sees negative inflation rate in months ahead-magazine. European Central Bank Vice President Vitor Constancio said in a magazine interview he expected the euro zone inflation rate to turn negative in the coming months but that if this was just a temporary phenomenon, he did not see a risk of deflation.
- ENERGY: NYMEX WTI Crude 57.13 (+5.10%), ICE Brent Crude 61.38 (+3.56%), NYMEX Nat Gas 3.464 (-4.89%).
-Market worries about a Russian default may be easing, the 5y CDS spread has dropped to a weekly low of 438.50 as of Friday.
- The European Central Bank should start buying government bonds to tackle poor investor confidence and low inflation in the euro zone, governing council member Luc Coene said in an interview published on Saturday. The Belgian central bank chief said the bank had already waited too long, and that this could be one tool to spur economic activity in the 18-country euro zone and fight off deflationary pressures. "In this context, the purchase of sovereign bonds could prove to be an effective tool," he told La Libre Belgique.
- Richmond Fed's Lacker:- “Lower energy prices are like a tax cut for consumers. Also, pointed out that consumer attitudes and business investment are pulses.” Finally, he added that “Feeling reasonably positive about economy in 2015 alongside with the fact that Expect companies to sit on cash in low rate environment.”
- Norwegian Krone Under Pressure as Oil Drops.
-New Zealand Westpac Consumer Confidence 114.8 in 4Q vs. 116.7 in 3Q.
-DAX30 consolidated on Friday but a breakout above 9834 may trigger a resumption of the bullish trend.
-Major news for the week ahead: GDP, Durable Goods, PCE, UMichigan Sentiment , Housing
Have a great week!
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