France’s President Sarkozy claimed the Euro area financial turmoil is stabilizing due the measures applied by European officials. According to Sarkozy Euro region is not at the edge of collapse any more. French President’s comments came a day before the first EU summit this year where lawmakers are expected to put end notes on fiscal discipline measures and finalize the statutes of bailout fund.
Consumer spending was neutral in December, indicating that Americans are rather building up cash reserves than spending their income right away. The 0.0% level was slightly lower than the Bloomberg survey consensus of a measly 0.1% growth.
UK house prices stalled in January, Hometrack ltd reported today, mainly caused by the nationwide lack of purchasing power. On a year-to-year basis prices have fallen by 1.6% last month. The UK economy contracted by 0.2% in Q4, 2011.
Delegates during World Economic Forum in Davos signalled certainty that Swiss National Bank (SNB) will be able to secure the ceiling of Franc amid searching for a new executive after Hildebrand’s resignation. SNB is perceived as stable and secure institution, pointed out Swiss President Widmer-Schlumpf. Although, Franc has appreciated to the record high since September, it managed to stay below the ceiling.
Japan’s Nikkei Stock Average tumbled on Monday, weighted down by US growth data amid Chinese central bank’s decision to maintain existing reserve requirement. Nikkei 225 Index lost 0.66% or 57.88 points and closed at 8,783.34, driven by industrials on the downside.
Daily maximum: 1.3209
Daily minimum: 1.3077
EUR/USD commited a decline today as Merkel said no Greek creditor deal will be closed today; it caused the pair to pierce the daily mean (1.3191). Daily Resistance: 1.3164; 1.3220; 1.3257. Daily Support: 1.3071; 1.3034; 1.2978. Daily Bias: Strongly bullish.
Daily maximum: 101.37
Daily minimum: 100.15
101.24 was touched today though the pair erased earlier gains as Greece did not close the debt deal on Monday. Daily Resistance: 102.01; 102.50; 102.01. Daily Support: 101.22; 100.92; 100.43. Daily Bias: Bullish.
Daily maximum: 1.5725
Daily minimum: 1.5654
The British Pound declined today after touching the daily forecast mean (1.5710) as the US m/m personal income (0.5% act./0.4% est.) and monthly Core PCE Price Index rose (0.2% act./0.1% est.) continues its recovery as the annual inflation index was released in line with economists forecast (4.2% act./4.2% est.). Daily Resistance: 1.5734; 1.5780; 1.5824. Daily Support: 1.5644; 1.5600; 1.5554. Daily Bias: Bullish.
Daily maximum: 76.77
Daily minimum: 76.50
The pair traded lower today on less-than-expected monthly change in personal spending (0.0% act./0.2% est.), leaving the market participants’ daily target (76.86) intact. Daily Resistance: 77.74; 78.03; 78.26. Daily Support: 77.22; 76.99; 76.70. Daily Bias: Neutral.
Daily maximum: 0.9209
Daily minimum: 0.9131
The American dollar continued trading in a bearish trend versus the Swiss Franc today as monthly change in US personal spending disappointed investors, causing the pair to hit the 0.9143 target. Daily Resistance: 0.9235; 0.9268; 0.9307. Daily Support: 0.9163; 0.9124; 0.9091. Daily Bias: Strongly bearish.
EU leaders struggle to reconcile austerity, growth
European leaders struggled to reconcile austerity with growth on Monday at a summit due to approve a permanent rescue fund for the euro zone and put finishing touches to a German-driven pact for stricter budget discipline.
Wages rise 0.4% in December; spending ebbs
U.S. consumers spent less in December and saved more as their incomes rose sharply, government data showed Monday.
Fitch Puts Australia Banks on Review for Possible Downgrade
Fitch ratings agency placed Australia’s four major banks on review for possible downgrade on Monday, reflecting their reliance on offshore funding as costs soar in the face of macroeconomic uncertainty