Royal Dutch Shell announced it plans to invest more to boost production. The company reported it would invest 30 billion US Dollars into the new gas and oil projects in 2012 as compared to 24 billion US Dollars invested in 2011. The move came after the company announced the annual rise in net income by 50% to 28 billion US Dollars in 2011.
US employment surged more than predicted in January while the unemployment level dropped to the lowest reading in last three years, confirming the US labour market is recovering and raising doubts about Fed’s pledge to maintain interest rates down by the end of 2014. The number of payrolls increased by 243 000 and the jobless rate decreased to 8.3% in January. Economists earlier predicted the unemployment level to stay unchanged at 8.5% and the number of expected new jobs fluctuated around 150 000.
The service sector of the UK started the year on the positive note with business and activity expanding at faster pace. Business Activity Index hit the 10-month high of 56.0 last month as compared to 54.0 in December’s reading. The sentiment also improved as business expectations soared to more than 15-year high.
Swiss National Bank’s (SNB) interim executive Thomas Jordan has to deal with appreciating Swiss national currency which is perceived as safe asset amid Greek debt uncertainty. The Franc has been climbing against Euro as Greek debt swap talks endured. It touched CHF 1.2032 against Euro on February 1, the highest reading since September 19. Currently EUR/CHF is trading at CHF 1.2055.
Japanese FM Jun Azumi distributed a warning that additional monetary intervention is likely to be necessary as Fed’s decision about freezing its low interest rates stimulated speculative Japanese Yen purchasing followed by sharp appreciation in domestic currency. US Dollar is fluctuating close to post World War II record low of JPY 75.31. Stronger Yen harms Japan’s exporters.
Daily maximum: 1.3205
Daily minimum: 1.3066
EUR/USD commenced a short-term correction on a surprise decline of the US unemployment (8.3% act./8.5% est.) and cross the daily forecast mean at 1.3142. Daily Resistance: 1.3198; 1.3252; 1.3309. Daily Support: 1.3087; 1.3030; 1.2976. Daily Bias: Neutral.
Daily maximum: 100.87
Daily minimum: 99.83
The shared European currency edged over the Japanese yen as the Italian preliminary monthly CPI rose in January (0.3% act./0.2% est.), the market participants’ mean was pierced today (100.11). Daily Resistance: 100.55; 100.92; 101.39. Daily Support: 99.71; 99.24; 98.87. Daily Bias: Neutral.
Daily maximum: 1.5680
Daily minimum: 1.5751
The British pound contied moving in the bullish trend on strong Services PMI (56.0 act./53.5 est.) and pierced the daily target (1.5815). Daily Resistance: 1.5843; 1.5882; 1.5906. Daily Support: 1.5780; 1.5756; 1.5717. Daily Bias: Neutral.
Daily maximum: 76.69
Daily minimum: 76.14
The Japanese yen weakened versus the American dollar today on solid non-farm employment change in the US (243K act./150K est.), crossing the 76.18 target. Daily Resistance: 76.29; 76.37; 76.49. Daily Support: 76.09; 75.97; 75.89. Daily Bias: Strongly bearish.
Daily maximum: 0.9233
Daily minimum: 0.9128
The pair hit the daily forecast mean at 0.9167 on strong US employment data. Daily Resistance: 0.9205; 0.9245; 0.9282. Daily Support: 0.9128; 0.9091; 0.9051. Daily Bias: Strongly bearish.
Euro-Region Retail Sales Unexpectedly Fell in December: Economy
European retail sales unexpectedly declined in December, led by Germany and France, as unemployment at a 14-year high and government spending cuts sapped consumer demand.
Job growth surges, jobless rate drops to 8.3 percent
The economy created jobs at the fastest pace in nine months in January and the unemployment rate dropped to a near three-year low of 8.3 percent, indicating last quarter’s growth carried into early 2012.
China’s Wen Tamps Down Concerns Over Europe Aid
Chinese Premier Wen Jiabao on Friday sought to assuage concerns over Chinese investment in Europe, saying China has no intention to “buy” the continent.