Recent US indicators have been positive, and this finally includes also employment figures: jobs are created at a steady pace and unemployment is dropping. The job figures also revealed a drop of many Americans from the work force, and another figure reflects the drop of too many Americans from mainstream society. No less than 46,268,257 Americans … “For 46 Million Americans, There’s No Recovery”
Month: December 2011
US Dollar Up Against Most Majors
US dollar is up against the euro today, and higher against other currencies right now. Greenback is gaining against the 17-nation euro as the ECB cuts its key rate to 1%, and as European banks increase their demand for dollars. For now, the markets are waiting for direction. Mario Draghi, the ECB president, has said that the euro breakup rumors arefar-fetched, and that it’s not time to speculate about such things. … “US Dollar Up Against Most Majors”
USD/JPY: Trading the UOM Consumer Sentiment December 2011
The University of Michigan Consumer Sentiment Index surveys consumer attitudes and expectations about the US economy. A reading that is higher than anticipated by the markets is bullish for the US dollar. Here are all the details, and 5 possible outcomes for USD/JPY. Published on Friday at 14:55 GMT. Indicator Background The University of Michigan Consumer … “USD/JPY: Trading the UOM Consumer Sentiment December 2011”
Swiss Franc Down on Fears of Another Intervention from SNB
The Swiss franc dropped today on the speculation that Switzerland’s central bank will make steps to weaken the currency further as soon as the next week. Earlier the franc was rising as the unemployment rate remained low. The franc attempted to use the uncertainty about Europe as a driving force, but failed. Switzerland’s unemployment rate remained at the almost three-year low of 3.0 percent in November for the seventh month. That helped the Swiss currency a little, but the slowing … “Swiss Franc Down on Fears of Another Intervention from SNB”
Slovakia Introduces Debt Ceiling Law Into Constitution
The parliament of Slovakia approved a new constitutional that limits the debt to 60% of GDP. The law includes automatic sanctions that are triggered when the debt level passes the 50% threshold. Slovakia is one of the poorest nations in the euro-zone. It was the last country though to approve the new EFSF powers. It … “Slovakia Introduces Debt Ceiling Law Into Constitution”
Korea’s Won Weakens After BoK Keeps Rates Unchanged
The South Korean won declined today on the renewed fears of the European sovereign-debt crisis, while the Bank of Korea refrained from increasing its interest rates. The BoK kept its repurchase rate unchanged at 3.25 percent for the sixth month. Such move was expected by economists. The central bank will refrain from raising the borrowing costs for some time, according to some market analysts. Most Forex commentators agree that the monetary policy … “Korea’s Won Weakens After BoK Keeps Rates Unchanged”
Canadian Dollar Fluctuates Ahead of ECB Policy Decision
The Canadian dollar fluctuated before the European Central Bank monetary policy meeting today and the summit of the European leaders on Friday. Yesterday, the currency closed almost unchanged. The Forex traders were caught between mixed emotions. On one hand, the signs of the disagreement between France and Germany regarding the way out of the crisis are negative for the Canadian currency. On the other hand, the ECB is expected to slash its interest rates on today’s meeting and that is … “Canadian Dollar Fluctuates Ahead of ECB Policy Decision”
Optimism Returns to Help Euro
Euro is gaining ground now, erasing earlier losses, as optimism returns to the Forex market. Earlier today, concerns about the gulf between Germany and France sent the euro lower. Now, there is optimism. The optimism is fairly cautious, though. No one seriously expects a breakthrough at the upcoming eurozone conference. However, there is the expectation that eurozone leaders will be able to agree on enough to keep hope for the 17-nation … “Optimism Returns to Help Euro”
Pound Goes Higher Even with Bad Fundamentals
The Great Britain pound advanced today even as the fundamental reports were worse that the pessimistic forecasts. Market analysts are scratching their heads, but don’t expect that the trend of the pound would become positive. According to the report of British Retail Consortium, the shop-price inflation fell to 2.0 percent in November from 2.1 percent in October. The index stands at the lowest level this year. Both industrial and manufacturing production dropped 0.7 … “Pound Goes Higher Even with Bad Fundamentals”
ECB Will Do a Lot – But Fall Short of Convincing Markets
Mario Draghi’s second rate decision will likely consist of his second rate cut in a row. There are expectations for additional measures such as easing collateral rules and extending loans to banks. While all these steps are necessary and helpful in the current situation, they will likely be too little and too late for helping … “ECB Will Do a Lot – But Fall Short of Convincing Markets”