Market Vibrations: News And Commentary From The Europe Desk (0600 GMT)

By Research Team,

1015 GMT: BOEMinutes released today on the whole pointed to a relativelyunchanged picture as the BOE attempts to juggle lagging growth withinflation risks. Board members voted unanimously to keep rates atultralow levels, while two members supported increasingquantitative easing but were outvoted in a 7-2 vote. Dovish Milesand Posen argued that more is needed to maintain the economy'ssupply capacity, but the majority of BOE members said they believedincreased quantitative easing would send a message that the economyis worse than it actually is. Meanwhile. ECB's Assmusen hasbeen on the wires saying it is time to gradually start preparingfor the ECB's exit from crisis mode. Eleswhere, The Japanesegovernment's March report has kept the economic assessmentunchanged; the report says the economy is picking up slowly.

0820 GMT: Swiss moneysupply rose in February by 6.4% on the year; the previous figurewas revised down to 7.3%. Meanwhile, a Goldman Sachsreport is pushing the case for US equity markets over the comingyears, saying the situation of stocks vs. bonds is the mostfavorable in a generation.

0700 GMT:According to a report, Germany mightneed to expand its European firewall guarantees to EUR280bln versusthe 211bln previously planned. Meanwhile, a bomb hasexploded near the Indonesian embassy in Paris; no causalities arereported at this point.

0600 GMT: Today's Asian session closed with currenciesstrong against the US dollar as risk sentiment picks up (althoughnot drastically). Aussie saw a brief rally after the bureau of resourcesand energy said it sees higher energy earnings in the future.The New Zealand current account deficit came in a NZD2.8bln,and NZ's FinMin said he expects the deficit to increase. The Fed has been making headlines with Kocherlakota hinting at an exit strategy from recentstimulus measures. Kocherlakota said the Fed can rein in inflationat the appropriate time by raising interest rates that are paid onreserves. He also mentioned that he sees the all-importantunemployment gauge in the "high 7s" by 2012's end, and that unemployment should should then drop to the "low 7s" inanother year.
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Original Article: http://www.dailyfx.com/forex/market_alert/2012/03/21/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.

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