The single European currency is resumed from 0.32% to 1.2750 dollar the euro this afternoon before a highly anticipated meeting of the ECB.
Euro recovers against the yen also (+ 0.43% to 98 yen) the sterling (0.19% to 0.8307), but settles on the other hand against the Swiss franc (- 0.13% to 1 , 2106 the euro franc).
Bond issues are closely followed. This morning, Italy issued 12 billion euros of state funds in the short term without suffering from lack of demand, even if rates remain high demand. The country has placed 8.5 billion euros a year to 2.73% as demand reached 12.5 billion. She also placed a short paper maturing on May 31 for 3.5
billion to 1.64% as demand reached 6.5 billion.
In the secondary market, the 10-year rates of Italian state funds remains below 7% to 6.56%.
In Spain too, a bond issue was expected and was relatively well. The rate of the ’10-year Spanish back to 5.15% this afternoon.
In recent days, “the many statements made in Europe seem to weaken the position of the euro”, commented this morning, the analysts Changes of Pictet & Cie this morning. “The market is stunned by news and information, sometimes comforting, sometimes disturbing, and the euro / dollar suffers”
Meanwhile, today, ‘the decision of the ECB will be the key event of the day, and as the impact of recent rate cuts has yet to be felt, the refinancing rate should be left unchanged this time’ , predicts a professional IG Markets.
“The rate (the ECB) should not be changed before the month of March,” predicts a consulting firm Northern Europe, who expects no further announcements on the side measures of liquidity. Traders, however, wonder if Mario Draghi will discuss “the stabilization of the economic environment and / or give clues about possible acquisitions of sovereign bonds.
Beyond the status quo expected, about the successor to Jean-Claude Trichet, Mario Draghi at its press conference at the beginning of the afternoon should be studied carefully, as some are hoping for signs of further rate cuts in the months to come.
In the meantime, take advantage of market rumors of a successful major award in Spain in which the country had managed to place about 10 billion euros of bonds: the yield on Spanish 10 years fell by 12 basis points to 5 , 20%.
It is in this context that investors are aware of the inflation figures in the two largest economies in the euro area: the whole of 2011 it stood at 2.3% in Germany and 2.5 % in France.
On the American side, is expected this afternoon in the U.S. the weekly jobless claims and retail sales in December, under the consensus to 375,000, and stocks of companies in November, which should move up 0.3%.
