Market Vibrations: News And Commentary From The Europe Desk (0720 GMT)

By Research Team,

1245 GMT: A spokesperson for the German government has been on the wires, denying rumors of a third Greek bailout and saying that the Greek debt swap must be completed before any discussion of a Euro-area firewall can occur. The spokesperson also added that the German government is confident that the opposition will back the fiscal pact. Eleswhere, EU's Barroso has said he has no doubts that Spain will respect its EU budget rules.

1026 GMT: European retail sales unexpectedly rebounded in January after falling for the last four months. Sales rose 0.3% from December, after dropping by half a percentage point at the end of 2011. Economists had predicted a further drop in January. The unexpected rise was led by growth in France, which served to offset weaker than expected German numbers.

0940 GMT: European PMIs have come in weaker than expected on the whole, with the services sectior failing to match gains in manufacturiong seen last week. Only Germany showed improvement on expectations.

Meanwhile, the ECB's Paramo has said that the Eurozone "is not in crisis."

0720 GMT: The European session opens today with risk appetite signioficantly weakened by Moodys' downgrade of Greece over the weekend. Ratcheted-down growth forcasts out of China overnight also heven't helped market sentiment, and commodity-correlated currencies continue to underperform after weak data overnight turned off risk. Stay tuned for European services PMIs later in the day.
DailyFX is the forex news and research arm of FXCM, Inc (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

Original Article: http://www.dailyfx.com/forex/market_alert/2012/03/05/Market_Vibrations.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.