Spain announced 65bn in budget cuts over the next 2.5 years, while their in a deep recession, but that was an example of the news flow overnight.
News or rumor is out that Asian countries have been selling the dollar very recently and buying the EUR/USD pair, which might explain the strange 3C charts in both currencies from yesterday.
The Australian dollar got a boost from overnight Australian Consumer Confidence coming in higher than expected.
In some news regurgitation, Finland reiterated they will not participate in the Spanish Banking bailout without Spanish collateral being offered, which is old news.
Some new news on the Spanish banking bailout, the draft bailout document says Spain will have to cede control of its banking sector to EU institutions and losses will be taken by (local) owners of junior bonds and preferred shares of the banks. This could get interesting as most of the people in this class are Spanish savers and small depositors.
In what I've been talking about for years, the Labor Department admitted that there have been leaked economic reports, I believe "consistently leaked" was used to describe the situation.
As for the US, the F_E_D or rather F_O_M_C minutes are due at 2 p.m. today which may indeed be interesting.
Overnight trade was about as interesting as the news flow...
ES was choppy, but only moved about 1 point overnight so it's not even worth showing, however this small positive divergence going in to the open is.
I would call this a relatively quiet markets and long term members know how I feel about quiet markets, they're like quiet kids, they're usually up to something and you don't want to be caught flat-footed with your guard down when that something occurs.
Hopefully we'll have more data today to see just what the heck yesterday was about, perhaps the F_O_M_C minutes now that we can confirm for sure that huge market moving reports from the government are routinely leaked.
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