Daily monitor 22.02.2013 Friday

Market news:

Most Asian equities were trading to the upside in Friday’s session, a day after U.S. stocks endured another downbeat performance on the back of some concerning economic data points.

Glenn Stevens, the governor of the Reserve Bank of Australia (RBA), said that the recent interest rate cuts are enough to boost growth, which boosted the AUD's trength against the USD. He also commented that the slowdown in China's economy has come to an end. From these comments, it seems that rates will be kept on hold for the time being.

This weekend the Italian elections will take place, but the winner will only be announced next Monday, until then keep an ear on any possible clues about the results.

This morning the EUR is trading mixed against its major counterparts, but European equities had a positive open.

Intraday options that are due to expire today at 15:00 GMT.

EUR/USD – 1.3200, 1.3300, 1.3350

GBP/USD – 1.5200

USD/JPY – 93.00, 93.50, 94.00, 94.50

AUD/USD – 1.0300

EUR/GBP – 0.8700

USD/CHF – 0.9230

Important economic data scheduled for today:

09:00 German Ifo Business Climate – Previous: 104.2, forecast: 104.9. The German Ifo Business Climate Index rates the current German business climate and measures expectations for the next six months. It is a composite index based on a survey of manufacturers, builders, wholesalers and retailers. The index is compiled by the Ifo Institute for Economic Research.

10:00 EU Economic Forecast – This report includes economic forecasts for EU member states over the next 2 years, covering about 180 variables. It is released three times a year. Probably won’t cause a big market reaction, but it still pays to look out for it.

13:30 Core CPI (Canada) – Previous: -0.6%, forecast: 0.2%. The Core Consumer Price Index (CPI) measures the changes in the price of goods and services, excluding food and energy. The CPI measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

13:30 Core Retail Sales (Canada) – Previous: -0.3%, forecast: 0.1%. Core Retail Sales measures the change in the total value of sales at the retail level in Canada, excluding automobiles. It is an important indicator of consumer spending and is also considered a pace indicator for the Canadian economy.