US equities were mixed yesterday evening; as if lacking fundamental direction with focus remaining mostly in the Euro Zone situation. Similarly the Asian equity indices were also mixed and mostly skewed to the lower side.
In the Forex market while the USD and the JPY managed to attract larger support we see that the antipodean currencies (AUD and NZD) suffered the greater losses as RBA minutes overnight tended to suggest further easing of monetary policy. For the rest of the majors direction remained unclear - euro and Swissie only marginally lower while GBP and the CAD slightly in the favour.
Recent better employment data out of Canada have left its mark on the CAD as it attracts support ahead of the BoC today. While consensus still point towards the Canadian central bank remaining on hold, speculation that the BoC may be leaning towards a future tightening has so far helped the currency this morning.
The economic docket is relatively busy today but focus is likely to go to bond auctions out of the EZ later this morning. Spain is due to auction off up to 3 billion euro in 12 and 18-month bills; the EFSF shall be auctioning off another 2 billion euro in short term notes as well; but even Greece is expected to auction around 1.25 billion euro in 3-month notes.
Spanish 10-yr yields continued to make fresh highs as they closed at 6.0257% yesterday - levels last seen back at the end of November last year.
Later today we also have CPI data out of the EZ and the UK, and the BoC will be announcing its rate decision as well.