Market Vibrations: News and Commentary fropm the Europe Desk (1050 GMT)
1050: The ZEW survey out of Germany today showed improving economic sentiment in Germany and the Eurozone during January. The lone weak area in the survey was the current situation category, which was slightly weaker than expected in Germany. The survey said economic expectations are positive for the second month in a row, and credited to improvement to strong German industrial production. Moreover, the ZEW institute said there is no chance of a recession in Germany, and that positive surprises are more likely.
0920: Inflation numbers out of Italy have come out as expected, showing inflation holding steady at 0.4% on the month. Meanwhile, the EU and IMFhave said in a report that the cost of support for Greece's financial sector is envisaged at EUR 50bln, and that asset sales should help cut Greek debt by EUR 45bln between 2012-2020. In related comments, Luxembourg FinMin says that increasing the size of the regional firewall is not "urgent."
0740: Today's European session opens with all eyes on the FOMC statement later today. Market players are interested to see whether or not Mr. Bernanke and co. will adopt a less accomodative stance given a recent streak of positive data which some have interpreted as signaling an American resurgence out of the global crisis. Meanwhile, the Bank of Japan kept key policy elements unchanged, referencing no increase in interest rates or monetary easing measures. The decision to do so was unanimous, the central bank said in a statement today. Stay tuned for the German ZEW survey later today.
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