Putting aside the plethora of important economic data releases, this should still be an important event filled week to say the least. In the Eurozone, The Eurogroup of 16 Eurozone Finance Ministers is due to convene in Brussels today, then the wider Ecofin group of 27 on Tuesday.
The media buzz / speculation has been mixed, with a slight lean (perhaps it makes for better news) that some bailout solutions will be announced. However, we still believe that EC drag their feet as long as possible in the hopes that markets “normalize” and any shift in the original tone of the Maastricht Treaty completely avoided.
Chinese Prime Minister Wen Jiabao threw cold water on last weeks CNY appreciation exuberance. Wen Jiabao said that the CNY wasn’t undervalued and rejected other nation’s unwarranted political pressure.
Generally BoJs two-day meeting are hardly a mark in FX trader calendar, however this week it should warrant a great deal more attention.
Overall is this environment especially considering the Greek situation and UK potentially reinstating their QE we favor long USD and EM positions.
