NEWS / Foreign Exchange

German Retail Sales Rebound from Last Months Lows

- The European indices are trading lower in the session ahead of some major economic releases in the US.

- European government bonds opened slightly lower today following weakness in US treasuries after results from the 5-Year note auction were released. The auction covered 2.14 times vs. 2.43 times at the previous auction. Further into the session the EGBs gained a touch of upside momentum, pushing them towards the green. Similarly in the UK Gilts are trading lower, but are off of their worst levels of the session.

- German retail sales rebounded during the month of February as consumer spending recovered from the implementation of the VAT hike in January. Retail sales were in line with expectations at 0.9% m/m, but fell below expectations at ??“1.6% y/y.

- Final fourth-quarter GDP was revised higher in France. GDP was revised up to 0.7% q/q from the preliminary reading of 0.6%, and to 2.5% y/y from the preliminary reading of 2.2%.

- Sweden??™s Riksbank left interest rates unchanged overnight as expected. In the post announcement comments Riksbank said that a slow increase in interest rates is expected, noting that wages and oil prices are inflation concerns. Riksbank said that the Swedish Korna has been slightly weaker than expected.

- Front month crude oil futures are currently trading in positive territory, but near the unchanged level after the Iranian president said that he would try to look upon the situation with the British sailors positively.