EUR/USD has opened a little lower, presently at 1.4935 compared to a North American close Monday around 1.4960. The JPY and USD have seen some general strength in Asia against a backdrop of Asian stockmarket losses.
Japanese stocks led the way. They were lower, in part, on concerns Japanese banks are set to sell more shares to replenish capital. Rating agency Fitch didn’t help matters, saying that weaker loan quality may put pressure on the big Japanese banks’ performance, capitalisation. Growing deflationary concerns in Japan will also be weighing.
A fair amount of Euro zone data due to be released today:
07:00 GMT: GermanQ3 GDP (final) expected +0.7% q/q, wda -4.8% y/y, nsa -4.7% y/y
07:45 GMT: French business confidence indicator for November expected 91 from previous 89; French own company production outlook for November expected +1 from -2; French production outlook indicator for November expected -9 from -11
07:50 GMT: French consumer spending for October expected +0.4% m/m, +2.3% y/y
09:00 GMT: German IFO expectations for November expected 97.3 from 96.8; business climate expected 92.5 from 91.9; current assessment expected 88 from 87.3
10:00 GMT: Euro zone industrial new orders for September expected +1.0% m/m, -17.3% y/y
European stockmarkets look set to open modestly lower.
Seem to be growing concerns surrounding the health of German bank WestLB.
Talk of stops on move through 1.4925, decent sell orders up around 1.5000.