Friday’s market movers
- Germany PPI February ticked up for YoY, from 5.7% to 6.4% while MoM dropped to 0.7% from 1.2%, slightly better than expected. Euro against US dollar gained modestly, broke 1.41 level.
- Following up with Trichet’s speech in the afternoon, keeping the expectations of increasing the interest rate in April “in the wake of the Japanese earthquake”, this saw a 5-month high at 1.4183.
Today’s market movers
- ECB Trichet will continue to give out speech this afternoon according to the economic calendar. He shows an attentive attitude to the Japanese nuclear crisis and the hawkish monetary policy decision to be made. Euro this morning remains strong on the back of his comments from Friday and could be spurred further today.
- The only piece of fundamental data coming out today is the US Existing Home Sales February. The market consensus is a plummet to -4.9% in January from 2.70% and to expect sales volume from 5.26m dip to 5.15m. The depression of the US housmarket will increase the uncertainty for the economy. We might see a massive movement for the dollar if it comes as disappointing as predicted.