Market Vibrations: News and Commentary from the Europe Desk (1100 GMT)
1100 GMT: Canadian CPI has comes in pretty much as expected (0.4% M/M. yearly 2.6 vs. expected 2.7%) fuling some choppy trade in USDCAD. In equity trading, European stocks are heading back into the red after earlier gains as bund yields widen amid growth concerns
0900 GMT: The SNB has been on the wires reitering the Swiss commitment to the 1.2000 EURCHF floor, and mentioning that the central bank is prepared to buy unlimited amounts of FX to enforce its position. Also, the Swiss KOF survey sees Swiss growth at 0.8% in 2012. EURUSD continues to drive higher but no clear catalyst yet. We have however heard of potential China RRR cut which could factor.
0730GMT: A nationwide measure of UK consumer confidence fell to 44 in February from 47 in January. This is after the BOE minutes a few days ago warned of high inflation and oil prices negatively affecting consumer confidence in the short and medium term. The French business confidence indicator has come out better than expected.
0600 GMT: European trade opens after risk appetite took a hit yesterday on weak European and Chinese PMIs. In some uplifting news for Europe, the French FinMin has raised his 2012 growth forecasts for the country from 0.5% to 0.7%. The 2012 forecast has been raised to 1.75%. Asian session highlights today included the Japanese FinMin Azumi annoucing that he is starting to compile the temporary next year budget from today. Hawkish comments out of the Fed's Bullard overnight as well, with the official saying there will be no QE3 unless the economy and inflation outlook deteriorate significantly.
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