15 May 2012
Gaurav Kashyap, Head of DGCX Desk at Alpari ME DMCC
Turning away from the Greece political story which has been such a key driver of risk sentiment in the past days, the economic calendar this week is stacked with a host of output data - Monday's industrial production figure for the Euro-zone contracted to -0.3% in March, and this was followed by a flat GDP reading for France (QoQ 0.0%) and the Euro-zone (QoQ 0.0%). But the markets took confidence from the German GDP reading which came in five times above expectations at 0.5% during the quarter (above the 0.1% expected and -0.2% previously). The markets took the German GDP figure with confidence and EURUSD has picked up off those monthly lows. Equities too have had a nice boost on optimism, and we are seeing the risk-on trade after several negative sessions. Overall, risk markets will remain on the back foot as the Greek situation will keep risk sentiments in check. The markets do not seem to have an answer after three attempts to form a coalition failed, so really we see today's German GDP as a brief positive in an otherwise risk off environment.
-Ends-
For more information, contact:
Nahed Ashour
Senior Consultant
PO Box 502697, Dubai Media City, UAE
T: +971 (0) 4 427 6447
M: +971 (0) 50 423 0537/+971 (0) 55 488 4988
E: nahed.ashour@capitalmsl.com
www.capitalmsl.com www.MSLGroup.com
Gaurav Kashyap, Head of DGCX Desk at Alpari ME DMCC
Turning away from the Greece political story which has been such a key driver of risk sentiment in the past days, the economic calendar this week is stacked with a host of output data - Monday's industrial production figure for the Euro-zone contracted to -0.3% in March, and this was followed by a flat GDP reading for France (QoQ 0.0%) and the Euro-zone (QoQ 0.0%). But the markets took confidence from the German GDP reading which came in five times above expectations at 0.5% during the quarter (above the 0.1% expected and -0.2% previously). The markets took the German GDP figure with confidence and EURUSD has picked up off those monthly lows. Equities too have had a nice boost on optimism, and we are seeing the risk-on trade after several negative sessions. Overall, risk markets will remain on the back foot as the Greek situation will keep risk sentiments in check. The markets do not seem to have an answer after three attempts to form a coalition failed, so really we see today's German GDP as a brief positive in an otherwise risk off environment.
-Ends-
For more information, contact:
Nahed Ashour
Senior Consultant
PO Box 502697, Dubai Media City, UAE
T: +971 (0) 4 427 6447
M: +971 (0) 50 423 0537/+971 (0) 55 488 4988
E: nahed.ashour@capitalmsl.com
www.capitalmsl.com www.MSLGroup.com
© Press Release 2012
