Belgian business climate improved in January, but remained in the negative territory since May 2011. The business climate index added 1.1 point to minus 9.5 this month on a seasonally adjusted basis from minus 10.6 in the preceding month, reported the Bank of Belgium. Experts predicted the index to inch up 0.5 points approaching minus 10.1 this month.
US President Obama called the government to impose higher taxes on country’s wealthy to restore income equality in US economy, fueling predictions he will use this call in his election campaign. Obama claims that those who earn millions must pay at least 30% tax to make sure more citizens have a fair share of income. President also demanded to create more jobs in domestic natural gas production and alternative energy production.
Debts owed by a typical UK family surged 48% since January last year as increasing inflation rate impacted households’ incomes, reported Aviva Family Finances. Average UK family owes about 7,944 Pounds in unsecured borrowings on loans, credit cards and overdrafts as compared to 5,360 Pounds in January last year. The debts represent over 32% of the overall net annual income and imply that families owe more debts as financial pressure increases.
The official SNB exchange rate for EUR/CHF is 1.2088 today; yield on 10-year Swiss Confederation bonds decreased to 0.80%. 3-month LIBOR CHF stands at 0.06%, and is within the target range of 0.00-0.25%. Swiss SMI stock index has lost 1.36% since the opening bell, and is currently fluctuating around 6052 points.
Japan reported the first yearly trade deficit in 30 years. The trade deficit of the country for 2011 amounted 2.49 million Yen, with imports adding 12% and exports decreasing by 2.7%, according to finance ministry. Experts blamed recent earthquake and tsunami as many factories and supply chains were damaged.
Daily maximum: 1.3051
Daily minimum: 1.2931
The shared European currency weakened versus the greenback and breached the daily forecast mean (1.3022) as the ECB opposed to accept losses on Greek government bonds. Daily Resistance: 1.3081; 1.3126; 1.3190. Daily Support: 1.2972; 1.2908; 1.2863. Daily Bias: Bullish.
Daily maximum: 101.89
Daily minimum: 100.98
The shared European rose today versus the American dollar as the German Ifo Business Climate Index rose today despite the recession fears, leaving daily forecast mean (99.15) intact. Daily Resistance: 101.69; 102.12; 102.96. Daily Support: 100.42; 99.58; 99.15. Daily Bias: Strongly bullish.
Daily maximum: 1.5626
Daily minimum: 1.5535
The British pound erased earlier weekly gains after touching the market participants’ mean (1.5602) on lower-than-expected final GDP (-0.2% act./-0.1% est.). Daily Resistance: 1.5655; 1.5687; 1.5748. Daily Support: 1.5562; 1.5501; 1.5469. Daily Bias: Bullish.
Daily maximum: 78.27
Daily minimum: 77.68
The pair crossed the 78.00 level and left the daily forecast mean (77.54) intact as the Japanese currency depreciated on the first trade balance deficit in almost 30 years. Daily Resistance: 78.03; 78.39; 78.93. Daily Support: 77.13; 76.59; 76.23. Daily Bias: Strongly bullish.
Daily maximum: 0.9338
Daily minimum: 0.91269
USD/CHF traded lower today after pending monthly home sales disappoined investors (-3.5% act./-0.6% est.), touching the daily target at 0.9273. Daily Resistance: 0.9312; 0.9350; 0.9389. Daily Support: 0.9235; 0.9196; 0.9158. Daily Bias: Neutral.
Greece hoping for debt swap deal as early as this week
Greece hopes to complete talks on a debt swap deal with its private creditors as early as this week, a Greek government spokesman said on Wednesday.
Fed set to push back timing of eventual rate hike
The Federal Reserve looks set to keep monetary policy on hold on Wednesday, even as it releases forecasts expected to show interest rates will be near zero for at least two more years.
Japan posts first trade deficit since 1980
Japan has posted an annual trade deficit for the first time since 1980 after a year of struggling to adjust to a strong yen, a eurozone crisis and the impact of natural disasters.