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Oil continued to trade above $80 following yesterday’s weekly inventories. Data showed that crude inventories grew, but analysts are now concerned that as the economic stimulus plans expire, we may see demand falling. Last night’s Chinese CPI data came in at 2.7% sparking inflationary fears.
OPEC raised their global consumption expectations for 2010, and raised [...]

Dollar Softens After Another Week Of Higher Jobless Claims
* Swedish CPI (Feb) came out marginally higher than expectations at 0.6% m/m, 2.7% y/y (0.5%/2.6% expected, -0.6%/0.6% prior).
* SNB kept interest rates unchanged at 0.25%, but reiterated their commitment to preventing ‘excessive’ CHF strength against EUR and said the possibility of deflation could not be ruled [...]

Overnight data released in China showed better than expected growth in factory output, and consumer inflation rose to a sixteen month high. CPI rose to 2.7% in February. This has raised concerns that the Chinese central bank may increase monetary tightening, and possibly raise interest rates. There is a school of thought that gradual tightening [...]

Despite The dollar easing, and increased inflationary reports coming out of China last night, gold still managed to tumble back. CPI in China rose to 2.7% in February, and now markets will be factoring in how the Chinese are going to handle rising inflation. Tightening monetary policy, and even interest rate rises are now a [...]

RBNZ Dovish, SNB Still To Come
A bit like the football team AC Milan – star performer in years gone by – NZD/USD took a good old beating last night. Although the RBNZ’s decision to keep rates on hold at 2.5% was widely expected, the statement and subsequent commentary was altogether more dovish, and extinguished at [...]

Dovish RBNZ Sends NZD Plummeting
* Japan’s Tsumura sees signs of self-sustained recovery in domestic demand.
* Japan’s Hirano was more pessimistic; saying economy still in severe state despite positive growth.
* Japan Q4 GDP was revised to +0.9% q/q, +3.8% annualized (1.0%/4.0% expected, 1.1%/4.6% prior).
* Reports that the China Statistics Bureau sees mild inflation in the [...]

Risk Trades Rally Strongly Despite Weak UK and US Data
* UK industrial production (Jan) posted a dreadful -0.4% m/m (+0.3% expected, 0.5% prior).
* Germany CPI (Feb) was revised up to 0.4% m/m, +0.6% y/y (0.2/0.3 expected).
* UK Prime Minister Gordon Brown says currency imbalances holding back global growth.
* German Economy Minister reported to have said [...]

The Dow edged a little higher last night, to close at 10,564, over 4,000 points higher than this time last year. As per the last few sessions, we have remained pretty directionless due to a dearth of economic data, and some subdued activity whilst we wait for a conclusion to the issues surrounding Greece and [...]

Ahead of today’s weekly inventories, traders appear to have taken some of the recent profits off the table, albeit we remain above the $80 mark. A spate of violent outbreaks in Nigeria has helped to increase concerns about supply from the African nation, but despite demand remaining sluggish, oil has rallied sharply over the past [...]