Euro SUmmary: Bond futures contracts headed higher in light trading Monday as weak economic data encouraged market participants to scale down their expectations of further monetary tightening by central banks. German industrial output fell by 2.4% in May, versus a forecast gain of 0.5%, for a year-on-year rise of 0.8%, versus forecast +3.6%. At 1100 GMT, the September bund contract was up 0.35 at 111.76, within a 111.42-111.88 range. Meanwhile, December euribor was up 0.04 at 94.89, with March '09 up 0.05 at 94.93. Weaker-than-expected UK industrial production, -0.8% in May versus forecast -0.1%, and manufacturing output, -0.5% versus forecast unchanged, lent support to gilts and short sterling contracts.
At 1100 GMT, September gilts were up 0.20 at 105.88, in a 105.62-106.00 range, while December short sterling was up 0.075 at 94.05. The dollar made ground Monday with the overhang from Thursday's no-bias ECB statement still weighing on the Euro. Steady stocks, the Nikkei ending a 12 day losing streak, Europe up around 0.8%, slightly lower oil, an improvement in risk appetite and the G8 meeting in Japan also helped the greenback. EUR/USD traded 1.5665-1.5611, sterling underperformed post data with GBP/USD hitting a 12 day low of 1.9670, while JPY slipped over 100 sen against both USD and Euro to 107.71 and 168.48 respectively.
0 comments:
Post a Comment