NEWS / Foreign Exchange

Markets Quiet Ahead of FOMC Minutes and ECB Rate Decision

- The European indices are currently trading in positive territory led higher by the energy sector on recent gains in energy prices.

- In a session light on economic data European government bonds opened modestly higher in the session following gains in JGB futures after machinery orders data fell below expectations. EGBs quickly moved into negative territory ahead of the FOMC minutes today, and tomorrow??™s ECB interest rate decision. Investors will be monitoring comments from the ECB??™s Trichet in the post rate announcement conference looking for any indication on future policy.

- As expected, the German wholesale price index rose to 0.5% m/m and 3.1% y/y.

- The French trade balance for the month of February came in as a deficit of ?‚¬2.6B, slightly better than the expected deficit of ?‚¬2.7B. January??™s figure was revised up to a deficit of ?‚¬2.6B from a deficit of ?‚¬2.8B.

- Swedish industrial production rose by more than expected to 1.3% m/m, above estimates of 1.0%. Industrial production rose to 6.8% y/y, above estimates of 6.5%.

- Front month copper futures are currently trading higher by 2.0% near a new seven-month high after breaching the 360 handle earlier on.