The markets remain timid before the ever important release of Non-Farm Payrolls released tomorrow. The picture does not seem bright for the payroll as almost every other front running indicator of the NFP seems to be under printing.
The Euro gained strength as European bank’s illiquidity was resolved. The ECB allocated an allotment of €111 Billion or $136 Billion in funds to resolve possible problematic situation. As a consequence the Euro rose to 1.2400, and seems to have established a bottom for the time being.
Ever important bond auction of Spain was covered by a demand to supply ratio of 1.7 to 1. The following suggests that the markets are willing to support the debt of European nations and that market situation is steadily improving. It is likely that the Euro has established a bottom.
Retail Sales in Australia prompted the Aussie to slip against other major counterparts. The Australian economy has been losing steam as off late due to the fact that the Chinese economy is itself underperforming the forecasts. China remains the growth engine for so many nations located in the Asia/Pacific region, and especially Australia. China tends to demand a lot of raw materials from Australia. Therefore, when the demand slips or Chinese data under prints, a reaction in Aussie is seen.
German Retail Sales slipped to a pace of negative 2.4% on year over year term as Germans tighten their wallets during time of uncertainty. Furthermore increased taxes among other measures are putting pressure on the consumer within Deutschland.
In the United States, Unemployment Claims figures came in far greater than expected suggesting that the employment picture does not seem to be too optimistic.
The markets will pay especially close attention to the ISM Manufacturing report today at 10:00AM EST.
Disclosure: No Positions