Germany Consumer Price Index (MoM) up to 0.6% in Feb from -0.5% in Jan. (YoY) 1.5% vs. 1.7%.
Feb 28, 2013
Forex Flash: Canada/USD rate spread may erode more – TD Securities
TD Securities analysts say that the CAD’s positive correlation with risk assets has strengthened again in the past few days despite the relatively weak (44%) correlation with the S&P500 on the rolling 22-day study. "The strongest driver or the CAD remains the short-term Canada/US rate spread (softer also but standing at 49% today) which suggests that Canadian data today and tomorrow (Friday’s GDP especially) should have a big influence on the market one way or the other", wrote analysts Shaun Osborne and Greg Moore, pointing to weakening spreads in the past two weeks, currently trading at 8 month lows (76bps). "The trend suggests that markets are preparing for more erosion in Canada’s yield advantage over the US. That should weigh on the CAD more", they added, eyeing a minor reversal and support at 1.0190/1.0210.
Forex Flash: EUR/USD: US premium over Germany moves in dollar favor - BBH
Early Asia built on the yesterday's euro recovery but ran out of steam near 1.3160, just in front of the 50% retracement of the sell-off from the early Monday high above 1.33, says the BBH analyst team. "On the pullback the euro briefly dipped below $1.3100, perhaps weighed down by sales against the yen. But there is a risk of a new run higher in North America today, with intra-day momentum indicators favoring a turn higher now from over-extended territory".