One measure of currency volatility has jumped sharply in this period of nervous anticipation of Fed decisions on reducing monetary stimulus. The two-day meeting (December 17-18) could lead to a further postponement of the 'tapering', but the data of these days, and especially that of tomorrow on the labor market, could force the hand. Yesterday's ADP forecasts indicate, at 215000 new jobs, an acceleration in the creation of employed employees, and other economic news too, such as the strength of exports and the sales of new homes, point to a strengthening American recovery (today it will be announced the data for the third quarter is known).
The MSCI Asia Pacific Index is broadly stable in early Japanese afternoon. The Nikkei, however, is losing about 0,9%, with the yen strengthening, albeit at the low level of 102 against the dollar. The Indian stock market, as well as the rupee, were instead boosted by polls on the upcoming elections in various states, which see the opposition party and the charismatic leader Narendra Modi as the winner, who could oust the Congress party in the next national elections.
Gold has gone on a roller coaster, jumping yesterday from a low of 1211 to 1243 $/ounce, only to settle again in this Asian mid-day at 1239.
The euro still strong (at 1,36) while the Australian dollar is still yielding. Crude is at yesterday's levels, just above 97$/b.
