Jobless rate in Germany declined more than expected in January, reaching 20-year record low. The number of unemployed people fell by 34 000, reaching 2.85 million. Economists earlier predicted a decrease between 8000 and 10 000. The adjusted unemployment rate eased from 6.8% to 6.7% indicating Germany is moving towards better performance than rest of Euro Area nations.
The Institute for Supply Management in Chicago reported an unexpectedly low purchasing managers’ index for January – the barometer decreased to 60.2 from 62.2 the month before. Additionally, other researches approved a lower-than forecasted November residential real estate price change, creating mixed sentiment among investors.
UK consumer sentiment index climbed 7-month record high in January, lifted by slowing inflation which boosted consumption. British consumer confidence gauge increased by 4 points and reached minus 29 which is the strongest figure since June 2011. The outlook for personal finances and nation’s overall economy also improved. Experts previously predicted the index to be at minus 31.
The official SNB exchange rate for EUR/CHF is 1.2057 today; yield on 10-year Swiss Confederation bonds decreased to 0.74%. 3-month LIBOR CHF stands at 0.07%, and is within the target range of 0.00-0.25%. Swiss SMI stock index has gained 0.30% since the opening bell, and is currently fluctuating around 5988 points.
Japanese industrial production expanded more than predicted in December as car manufacturers recovered from Thailand flooding which disrupted their supplies. Japan’s manufacturing output added 4% in December compared to previous month. Economists questioned by Bloomberg earlier predicted an increase of 3%. Nevertheless, Japan still is challenged by appreciated Yen which harms exporters.
Daily maximum: 1.3213
Daily minimum: 1.3114
The shared European currency lower today against the American dollar today and pierced the daily forecast mean (1.3146) on weak French consumer spending (-0.7% act./0.3% est.) and German retail sales (-1.4% act./0.9% est.). Daily Resistance: 1.3219; 1.3295; 1.3367. Daily Support: 1.3071; 1.2999; 1.2923. Daily Bias: Bullish.
Daily maximum: 100.87
Daily minimum: 100.00
EUR/JPY embraced losses today as weak macroeconomic data from the Eurozone discouraged investors; thus, the daily forecast mean (101.50) remained intact today. Daily Resistance: 101.18; 102.05; 102.65. Daily Support: 99.71; 99.11; 98.24. Daily Bias: Neutral.
Daily maximum: 1.5795
Daily minimum: 1.5701
1.5702 target was hit today on less-than-forecast UK M4 money supply (-1.4% act./0.3% est.). Daily Resistance: 1.5744; 1.5779; 1.5824. Daily Support: 1.5664; 1.5619; 1.5584. Daily Bias: Bullish.
Daily maximum: 76.41
Daily minimum: 76.17
The Japanese yen appreciated today on more-than-expected annual household spending (0.5% act./-0.1% est.) and strong preliminary industrial production (4.0% act./2.8% est.) after touching the daily forecast mean (76.41). Daily Resistance: 76.66; 77.00; 77.22. Daily Support: 76.10; 75.88; 75.54. Daily Bias: Strongly bearish.
Daily maximum: 0.9183
Daily minimum: 0.9123
The pair pierced the market participants’ target (0.9167) as UBS consumer confidence increased to 0.92, comparing to previous 0.78 level. Daily Resistance: 0.9214; 0.9257; 0.9306. Daily Support: 0.9122; 0.9073; 0.9030. Daily Bias: Bearish.
EU summit: UK and Czechs refuse to join fiscal compact
Twenty-five of the EU’s 27 member states have agreed to join a fiscal treaty to enforce budget discipline. The Czech Republic and the UK refused to sign up. UK Prime Minister David Cameron said his government would act if the treaty threatened UK interests.
Home Prices in U.S. Probably Decreased at Slower Rate as Market Stabilized
Home prices in 20 U.S. cities probably fell at a slower pace in the year to November, pointing to limited improvement in the residential real estate market, economists said before reports today.
China to make Shanghai global yuan hub by 2015
China intends to establish Shanghai as the global centre for yuan trading, clearing and pricing over the next three years as part of broader plans to make the commercial hub an international financial centre by 2020.