Euro Spikes (temporary) Lower On Poor EMU Data

Euro Spikes (temporary) Lower On Poor EMU Data


Fixed Income: German Bund cannot fully profit from weak eco data
EMU business confidence was disappointingly weak and pushed core bonds higher, but the move missed dash and fizzled out ahead of key resistance. US Treasuries ended even slightly lower after an uneventful FOMC meeting. Peripheral bonds closed the session little changed amid confusion about the fate of the Greece rescue programme.

Currencies: Euro spikes (temporary) lower on poor EMU data.
EUR/USD spiked lower on disappointing EMU PMI/IFO reports. However, global sentiment on risk improved later in the session, containing the damage for EUR/USD. The global setback of the euro provided a perfect excuse for profit taking in EUR/GBP, too. Today the UK Q3 GDP will decide on the fate of EUR/GBP. USD/JPY regains the 80 mark on anticipation for aggressive BOJ stimulation.