|10-Year: +22/32....%.... GNMAs: .... USD/JPY: 78.70.... EUR/USD: 1.2632|
Empire Manufacturing: Actual 2.3, consensus 13.5, prior 17.1
Net Long-Term TIC Flows: Actual $25.6B, prior $36.2B
Industrial Production: Actual -0.1%, consensus 0.1%, prior 1.1% (revised 1.0%)
Capacity Utilization: Actual 79.0%, consensus 79.1%, prior 79.2%
Michigan Sentiment: Actual 74.1, consensus 77.0, prior 79.3
The euro is holding 1.26 this morning but has so far been unable to test the week's high of 1.2668 set on Monday. All eyes turn to the Greek election which is being viewed by many as a referendum on the euro itself. ECB's Mario Draghi helped stem some fears this morning by saying the central bank is prepared to act to insure liquidity conditions remain stable but the focus remains on Greece.
The pound remains bid this morning despite statements from BoE Governor Mervyn King on the next easing actions the central bank will likely take. The comments came from a speech last night by Mr. King, and the pound would see a dip to the 1.5480 level before recovering and shooting back to 1.5640. Sterling is currently running into resistance at those levels. It also is at the mercy of Greek elections as contagion fears remain the key driver at the present.
The yen is below the 79 level as it sees safe-haven bids. Also driving the move higher was the Bank of Japan refraining from any more easing actions at today's meeting. The strength on this is a little surprising as expectations were very low with most feeling the central bank would prefer to save any of it's ammunition in case global markets came under fire from the Greek election results.