Majors, February 19, 2010

Majors: Japan’s central bank left rates unchanged and made no comments on the possible extension of its QE measures in its meeting in Asia yesterday with the Yen gaining steadily against the US throughout trade in Asia and Europe. The Euro retested 9 month lows around 1.3535 USD early in European trade as concerns over lagging growth occupied the mindset of investors who are not convinced the worst of Europe’s Sovereign Debt issues are over. The region’s weak consumer spending is expected to stifle growth as the Trojan horse delivered to win this war will more than likely hold reduced government spending and increased taxation as its soldiers. The Euro rose almost 1% following an increase in risk appetite after the U.S Produce Price Index increased 1.4%. The Dollar hit a high of 91.475 JPY upon the release of this data with the EUR/JPY cross also rallying sharply. The US Dollar receded from its highs when it was revealed leading US economic indicators grew 0.3%, half the forecasted growth, leaving the Yen and Euro to open at 91.300 and 1.3600.