The pace of economic expansion of Germany is expected to decrease to 0.4% next year due to weak world’s economy and debt crisis in the euro-zone, reported Ifo Institute. The institute predicts the GDP to expand by 3% in 2011 after 3.7% increase last year. The company outlined high instability in the euro-zone as the major factor that may severely impact Germany.
US stock index futures climbed higher after investors absorbed the results from German and Italian bond auctions. Futures on the Standard & Poor’s 500 Index rose 3.9 points at 1,224.1, while those on Nasdaq 100 traded almost flat at 2,268.2. Dow Jones Industrial Average futures gained 24 points reaching 11,919.
In the UK, the number of residents applied for unemployment benefits increased much less than analysts expected while the unemployment rate remained the highest since 1996, according to official data. The number of claimants increased by 3,000 on a seasonally adjusted basis in November compared to 17,000 previously expected. The unemployment rate stays at 8.3% with 2.64 million people being unemployed.
Official SNB exchange rate for EUR/CHF is at CHF 1.2328 today; 3-month LIBOR CHF remains at 0.05% (within target range of 0.00-0.25). Yields for 10-year Swiss Confederation bonds increased to 0.78% today. SMI stock index has lost 0.56% since opening bell, and is currently fluctuating around 5729 points.
Japan’s Nikkei Stock Average declined 0.39% or 33.68 points to 8,519.13 as markets anticipated Fed report it will not apply expansionary monetary policy to stimulate growth. On the downside were resource companies with Mitsui Mining & Smelting Co tumbling 1.4% and JFE Holdings Inc dropping 0.9% Export dependent Japanese car producers also extended their loss: Honda Motor Co declined 2.2% and Suzuki Motor gave up 1.1%. On the upside were energy stocks. Mitsumi Elec Co gained 3.99% and Tokai Carbon Co added 2.46%.
Daily maximum: 1.3064
Daily minimum: 1.2965
The daily mean at 1.3077 remained intact today as the pair went lower after Italy sold its debt at a euro-area high yield as investors worldwide remain anxious of the Italian economic prospects.
Daily Resistance: 1.3178; 1.3320; 1.3405.
Daily Support: 1.2951; 1.2866; 1.2724.
Daily Bias: Strongly bearish.
Daily maximum: 101.82
Daily minimum: 101.21
EUR/JPY continued bearish trend today as the EU m/m total Industrial production rose at a weaker pace than expected, causing the pair to pierce the market mean at 101.93.
Daily Resistance: 101.61; 103.55; 104.13.
Daily Support: 101.09; 100.51; 99.57.
Daily Bias: Strongly bearish.
Daily maximum: 1.5664
Daily minimum: 1.5592
The daily forecast mean at 1.5509 remained untapped today as the British pound rose versus the American dollar on declined number of unemployment benefits claimants in the UK.
Daily Resistance: 1.5591; 1.5699; 1.5770.
Daily Support: 1.5412; 1.5341; 1.5233.
Daily Bias: Bearish.
Daily maximum: 78.15
Daily minimum: 77.92
The American dollar edged slightly higher today versus the Japanese yen after the monthly industrial output in Japan was weaker than forecast. Thus the market participants’ forecast consensus at 77.91 hasn’t been tested yet.
Daily Resistance: 78.13; 78.26; 78.51.
Daily Support: 77.75; 77.50; 77.37.
Daily Bias: Bearish.
Daily maximum: 0.9506
Daily minimum: 0.9430
USD/CHF continued its bullish rally after the Swiss ZEW Indicator worsened on concerns the EU debt crisis might leave a negative impact on the Swiss export-driven economy, piercing the daily forecast mean at 0.9434.
Daily Resistance: 0.9236; 0.9266; 0.9302.
Daily Support: 0.9170; 0.9134; 0.9104.
Daily Bias: Strongly bullish.