European Market Update
*** ECONOMIC DATA *** FR Nov Business Confidence: 110 v 107e FR Nov Production Outlook: 3 v 4e FR Nov Own-Company Production Outlook: 21 v 17 [highest since January 2001] || Prior revised from 20 to 19 Taking a look at some of the other components, the rise in business confidence was the result of a rise in past production from 12 in October to 16 in November, and a rise in order books from 0 to 3 for the same periods, as well as the rise in own-company production outlook. Despite the rise,
European Market Update
*** ECONOMIC DATA *** GE Oct Import Price Index: M/M 0.7% v 0.4%e || Y/Y 2.3% v 1.9%e German import prices exceeded consensus expectations led by a surge in energy prices, however the rise was roughly in line with the recent trend in the indicator. FR Oct Consumer Spending: M/M ?1.1% v ?0.2%e || Prior revised from 0.1% to ?0.3% |||| Y/Y 2.7% v 4.4%e || Prior revised from 5.8% to 5.1% French consumer spending declined by more than expected, weight down by all of its components. The most notable
US: Homebuilders’ sentiment stabilizes in November
The National Association of homebuilders? headline index steadied at 19 in November. The October figure was revised up to 19 from 18 previously. The market was looking for a decline to 17. Even after revision, the index is at the lowest since January 1985, showing the extreme weakness in the sector. While a better result than expected, there is still no improvement on the horizon. Lower levels of confidence remain a possibility in the next months, even if the very low level means the downside
AUD Overlay
AUD Average YTD: .8391 Australian Exporter Most Recent Action Hedged/Long at .8799 Reversed at .8701 New Position Unhedged/Short New Reversal Point .8829 Rate Achieved YTD: .7738 Australian Importer Most Recent Action Hedged/Short at .8771 Reversed at .8839 New Position Unhedged/Long New Reversal Point .8651 Rate Achieved YTD: .8522
U.S. corporate profits: Wall Street optimism to face stress test
U.S. Dollar Fell To Record Low vs Euro
The dollar hit a record low against the euro on Thursday, extending losses as expectations for a further Federal Reserve interest rate cut were reinforced after the central bank cut its U.S. growth forecasts for next year. The euro hit a record high of USD 1.4873 on electronic trading platform EBS, the highest since the euro’s launch in 1999. The dollar fell to a record low of 1.1006 francs on EBS. Asian Markets Fell But Off Early Lows Asian stocks extended their decline on Thursday in early
Minutes of the October FOMC Meeting: Fed Remains Biased Toward Easing
Minutes of the October FOMC Meeting: Fed Remains Biased Toward Easing The minutes of the October 30-31 meeting indicate a FOMC significantly concerned about the ramifications of the housing market weakness and the credit crunch. Despite this view, the October 31 easing was cited as a ?close call.? The tone of the minutes suggests that the FOMC is predisposed toward easing but the timing remains unclear. The minutes noted that ?even with some further easing of monetary policy participants
Global imbalances are correcting - dollar on the slide as returns fall
Is the current fall in the dollar almost a case of be careful what you wish for? In other words, is the sharp fall in the US currency finally a response to the size of its current account deficit and repeated calls for global imbalances to adjust? We explore the issue in this week?s briefing and what it may mean for the world economy and exchange rates. There have been long and persistent calls for global imbalances to adjust? One of the main worries about the global economy over the last
The Legion of Doom
Edward Ponsi The weak greenback is a cause for celebration for the enemies of the U.S., and now Venezuelan President Hugo Chavez is weighing in on the falling U.S. Dollar. “Soon we will not talk about dollars because the dollar is falling in value and the empire of the dollar is crashing,” said Chavez on November 19. “Naturally, with the crash of the dollar, America’s empire will crash”. At the time of his statement, Chavez was visiting another one of America’s best buddies, Iranian President
The Greenback Takes a Beating on Thanksgiving
- Forex: Traders saw thin market conditions as an opportunity to push EUR/USD closer to 1.50, and the pair hit a new record high above 1.4960. The USD index hit a record low, and USD/JPY dipped below 108 for the first time since June 2005. The KRW lost ground as foreigners sold South Korean shares, continuing its slide after six consecutive sessions of declines. There was a slight reduction in risk aversion, with the Asia ex-Japan Itraxx index falling 6bps to 168bps at the start of trade,
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