29/05-12   -   Press releases

Markets cautious but stable

After yesterday´s wobble, markets are once again looking to steady the ship. Investors have pored scorn over Spain´s claims that it can handle its crisis without a bailout, in a denial that has echos of Greece and Ireland, but so far markets are holding. The Australian dollar is leading markets higher, with the AUD/JPY and AUD/USD up 0.24%. The NZD/USD is not far behind, up 0.21%.

Gold is also recovering, up 0.20%. It´s a different story in Europe though with the euro and British pound flat in early morning trading. The EUR/ USD is unchanged having survived a test of the lows yesterday.

It´s a fairly light economic calendar again today, with the main item of note this morning being German prelim CPI, released at some point in the morning. UK CBI realised sales are released at 11:00.
At 14.00 we have the latest US Case Shiller House Price Index, with an improvement on last month expected. At 15.00 we have the latest US CB consumer confidence figures.

The EUR/JPY has been scraping along the bottom of support for the last few days as the survival of the euro remains in the balance. With the big US jobs data due on Friday, there could be a fair chance of some decent movement from this precarious position for the pair. The euro is deeply oversold from a technical perspective, but has the potential to plunge based on any political developments.


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