Analytics, News, and Forecasts for CFD Markets: currency news — 25-02-2013.

Sold E7.483bln vs target E6.4bln-E7.6bln

- E3.792bln 3-month BTF, avg yield 0.012% (0.015%), cover 1.91 (2.29)

- E1.897bln 6-month BTF, avg yield 0.041% (0.050%), cover 2.47 (3.66)

- E1.794bln 12-month BTF, avg yield 0.121% (0.131%), cover 3.4 (2.78)

09:00 Italy Parliamentary Election

09:30 United Kingdom BBA Mortgage Approvals January 33.6 34.2 32.3

Euro strengthens, pending the outcome of the parliamentary elections in Italy. The voting process will end at 14:00 GMT, and the first results will be around 15:00 GMT. The most likely scenario, which would be positive for the euro, will be an alliance between the center-left Bersani and Mario Monti.

A preliminary report from Italy showed that in January, the trade balance, excluding EU countries amounted to - € 2.281 billion versus + € 3.317 billion a month earlier. Last month, Spain's PPI fell by 3.3% (revised from 2.7%) to 2.6%. Today, the Italian government sold two-year zero coupon bonds in the amount of 2.818 billion euros ($ 3.71 billion), short of the upper threshold of the forecast range of 3 billion euros.

The British pound has stabilized after a decline at the opening of the day, after the international rating agency Moody's Investors Service has downgraded by one notch, from Aaa to "Aa1", the UK government bond rating. The rating outlook - "stable." The Agency, in particular, pointed to the risks to the financial situation of the country due to the economic slowdown. Moody's expects the UK government debt in the coming years, as the rise of the British economy will be slow and uncertain, at least until 2016. Accordingly, the UK will continue to adhere to measures to reduce public spending. In January of approved applications for mortgages BBA in Britain fell by 33.6 thousand to 32.3 thousand vs. 34.2 thousand

Yen compensate the losses incurred in response to rumors (not yet confirmed) that the prime minister Abe appoint new head of ADB President Kuroda, a supporter of the additional stimulus. At the opening of the Asian session, the yen fell to a three-year low against the dollar on news reports that Japanese Prime Minister Shinzo Abe formally put forward for the post of Central Bank nominee Harika Kuroda, head of the Asian Development Bank. Kuroda advocated aggressive monetary measures to stimulate the economy. Japanese Prime Minister Shinzo Abe to formally nominate the 68-year-old Kuroda in the middle of the week, after which it must be approved by Parliament. Kuroda said the real reach 2 per cent inflation for two years, thus defeating the long-term deflation. At the same time, the official confirmation of the upcoming nomination Kuroda to head the Bank of Japan yet. The current head of the Central Bank leaves his post on March 19.

EUR / USD: during the European session the pair has shown a steady growth up to $ 1.3318

GBP / USD: during the European session, the pair is trading in the range of $ 1.5110 - $ 1.5165

USD / JPY: during the European session the pair updated intraday low Y93.76

At 17:15 GMT The head of the Bank of Canada to make a speech. At 21:15 GMT a speech assistant chairman of the Australian central bank Guy Debelle.

EUR/USD

Offers $1.3355/60, $1.3335/40, $1.3300/10, $1.3275/80

Bids $1.3210/00, $1.3175-50, $1.3125/20, $1.3100

GBP/USD

Offers $1.5225/35, $1.5200, $1.5180, $1.5160/65

Bids $1.5120/15, $1.5100, $1.5070, $1.5050, $1.5010/00

AUD/USD

Offers $1.0400, $1.0375/80, $1.0350, $1.0325/30

Bids $1.0280/75, $1.0250, $1.0240/35, $1.0215, $1.0210/00

EUR/GBP

Offers stg0.8890/900, stg0.8830-50, stg0.8820, stg0.8800 stg0.8780/85

Bids stg0.8710/00, stg0.8685/80, stg0.8640/45, stg0.8630/20

EUR/JPY

Offers Y126.30, Y126.00, Y125.50, Y125.00, Y124.65/70

Bids Y124.10/00, Y123.50, Y123.20, Y123.00

USD/JPY

Offers Y95.25, Y95.00, Y94.45/50, Y94.15/20

Bids Y93.80/70, Y93.50, Y93.20/15, Y93.00

Germany sold E1.939bln 12-month Bubill at average yield 0.0353% (0.1319%), cover 2.2 (1.8) and E1.061bln or 35% held for secondary market operations vs 31% previously.

• Italy sold E2.818bln CTZ vs target E2.0bn-E3.0bn
  
• E2.818bln of Dec 2014 CTZ; avg yield 1.682% (1.43%), cover 1.65 (1.45)
  
• E941mln of 2.10% 2021 BTPei; avg yield 2.79%, cover 1.76
  
• E309mln of 3.10% 2026 BTPei; avg yield 3.23%, cover 3.31
  

EUR/USD $1.3150, $1.3200, $1.3250, $1.3300, $1.3400, $1.3450

USD/JPY Y93.00, Y93.50, 94.00

EUR/JPY Y125.00

EUR/GBP stg0.8600

The euro lost all previously won positions against the dollar after the European Central Bank said that the bank will pay 1.74 billion euros for the first loan LTRO on February 27 against 3.79 billion euros the previous week. Meanwhile, the ECB announced that nine banks paid the first loan LTRO 27 February to 9 banks in the previous week, and 356 bank loan payments for the 2nd operation LTRO on February 27. In addition, the European Central Bank said that the bank will pay 61.1 billion euros in the second three-year loan LTRO on February 27.

The pressure on the European currency has also forecast by the European Commission, according to which, eurozone GDP will decrease by 0.3% in 2013 and grow by 1.4% in 2014, while the budget deficit in the euro area will be 2.8% of GDP in 2013 and 2.7% in 2014. Recall that the Commission previously predicted growth of euro area GDP by 0.1% in 2013 and 1.4% in 2014

The Australian dollar rose sharply against the dollar, departing from a seven-week low amid comments head RBA Stevens, who echo the statements of the last minutes of the Bank, and concluded that the monetary easing "done its job" in supporting the Australian economy. In addition, he noted that for an intervention to weaken the Australian dollar threshold is quite high and it is necessary to be sure that the currency is seriously overvalued. In addition, Stevens has signaled the possible end of a cycle of declining interest rates. At the same time, economists note that the next change in interest rates is likely to be to the downside, and not increase as the economy there are increasing signs of growth. Recall that the Reserve Bank of Australia cut interest rates by 1.75 percentage points, to 3.00% in an effort to support the growth of the economy. Latest interest rate cut was in December.

Course of the New Zealand dollar rose against the dollar, which was the first time in three days, after a report showed that the amount of spending on credit cards has increased in the last month, registering with the third monthly increase in a row.

The yen traded in a narrow range, as market participants are waiting for the meeting of Prime Minister Shinzo Abe and U.S. President Barack Obama.

00:01 China HSBC Manufacturing PMI February 52.3 52.2 50.4

The yen sank to an almost three-year low as Japan’s government narrowed down candidates to run the central bank and pursue the prime minister’s plan for expanded monetary stimulus. The Asian currency declined against all its major peers as Prime Minister Shinzo Abe was said to be very likely to nominate Asian Development Bank President Haruhiko Kuroda for Bank of Japan governor. Abe is also likely to tap Kikuo Iwata, an academic who has advocated a ramping up in Japan’s monetary base, and Hiroshi Nakaso, a senior BOJ official, as deputy governors, according to a government official with knowledge of the matter who asked not to be named as the talks are private. Japanese media reported on the nominations earlier.

The pound slid against the dollar for a second day after Moody’s lowered the rating on the U.K. by one level to Aa1 from Aaa. It cited weakness in the nation’s growth outlook and challenges to the government’s fiscal consolidation program, according to a Feb. 22 statement.

The Australian dollar sank against all its major peers except the yen after data indicated China’s manufacturing may expand at a slower pace this month. China is Australia’s biggest trading partner. The preliminary reading of a Purchasing Managers’ Index was at 50.4 in February, according to a statement from HSBC Holdings Plc and Markit Economics today. That compares with the 52.3 final reading for January and the 52.2 median estimate of analysts surveyed by Bloomberg News. A number above 50 indicates expansion.

EUR/USD: during the Asian session, the pair traded in the range of $1.3180-20.

GBP/USD: during the Asian session the pair fell to $1.5070, but later recovered.

USD/JPY: during the Asian session, the pair rose to Y94.60, but later dropped Y93.95.

A fairly light data calendar for today, Italian bond auction at 1000GMT to provide the morning interest. There is only a limited UK data calendar, with the release of the January BBA Lending Data. At 1545GMT, UK Chancellor George Osborne is set to appear before the Parliamentary Commission on Banking Standards, in what could be a rocky appearance following the UK's sovereign downgrade on Friday.

00:01 China HSBC Manufacturing PMI February 52.3 52.2

09:00 Italy Parliamentary Election

09:30 United Kingdom BBA Mortgage Approvals January 33.6 34.2

15:30 Eurozone ECB's Jens Weidmann Speaks

17:15 Canada BOC Gov Carney Speaks