Buoyed by more optimistic IMF global growth forecasts for 2012 and increasing speculation that Beijing will soon take further steps to ease financial conditions, the appetite for risk has suddenly improved. Also contributing to the more positive tone was some decent earnings news out of the US from the likes of Coca Cola overnight, some encouraging growth news out of Germany and acceptable auctions in Europe, notably Spain. Apple shares surged 5% amid hopes that next week's earnings will reveal strong demand for iPads. In addition, the falling price of Brent crude is helping to soothe nerves. In Europe, the Euro Stoxx 50 jumped nearly 3% and is now back in the black for the year to date, while the S&P was up 1.6%, its best performance for a month. High-beta currencies such as the CAD and the Aussie did well, the latter now close to 1.04 again. Both the dollar and the Japanese yen have given back some of their recent gains.
Also in today's Daily Forex Brief:
- Euro whiplash
- UK inflation still uncomfortably high
- Lower oil price a welcome relief
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