Italian auction today – “In our view a number of factors point towards a decent outcome”
– Relatively low issuance volume and favourable market positioning
– Market environment has improved
– Net issuance and cash-flow outlook are supportive
– Debt sustainability analysis: growth and the impact of fiscal tightening remain key risks
http://www.easyforexnews.net/wp-content/uploads/2011/07/FD130711SA.pdf
KRW – plenty upside potential still
– KRW remains unusually weak relative to history
– Korean exporters can compete at USDKRW 900.
– Inflation is too high so currency appreciation is desirable
http://www.easyforexnews.net/wp-content/uploads/2011/07/MacroKeys140711.pdf
Bernanke update
Please see attached from US economics.
UBS economics view: “We continue to believe that better growth in the second half of 2011 and continued core inflation pressure argues against further monetary policy stimulus.”
http://www.easyforexnews.net/wp-content/uploads/2011/07/Bernanke-Maury-Harris.pdf
UBS Investment Bank