“Then, early March at the latest, this fiscal compact treaty will be signed”
– Van Rompuy, European Council President
All European Union member countries apart from Britain will sign a treaty on deeper fiscal integration within the block by March, said European Council President Van Rompuy on Tuesday, as the union strives to restore investor confidence.
“Sales are growing, but they just aren’t accelerating”
– Ryan Wang, an economist at HSBC Securities USA Inc.
U.S. month on month retail sales grew less than expected in November, said the Census Bureau on Tuesday. Total retail sales rose 0.2 percent the previous month after increasing 0.6 percent in October. Economists expected the reading to advance 0.6 percent.
“The fall in inflation in November was as expected, and will accelerate in the early months of 2012”
– David Kern, chief economist at the British Chambers of Commerce
U.K. inflation eased for a second consecutive month in November, helped by lower food, transportation and clothing costs. Consumer prices rose 4.8 percent compared with the same period last year, said the Office for National Statistics on Tuesday.
CHF
“Europe still stands in the foreground as all efforts to solve the debt crisis are still inadequate”
– Patrik Scheuber, head of equities at Swisscanto Asset Management AG
Swiss stocks rose on Tuesday after German investor confiden ce unexpectedly improved in December for the first time in 10 months, easing concerns about Europe’s largest economy.
JPY
“Nothing new came of last week’s European summit”
– Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co.
Japanese stocks declined on Tuesday after rating companies said last week’s summit did little to resolve the debt crisis. The Nikkei 225 shed 1.17%, or 101.01 points, to 8,552.81, while the broader Topix lost 0.80%, or 5.98, to 740.71.
“By the beginning of 2012 [EUR/USD] is likely to drop to around $1.25”
– Credit Suisse (based on CNBC)
After a break of 1.3145 bearish impetus of the pair has strengthened and may drag EUR/USD down to 1.2860. While the long-term target lies at 1.20. Rallies, on the other hand, are expected to be limited by resistances at 1.3212 and 1.3355.
“It looks like Eurozone credibility is once again on the rocks”
– Swissquote Bank SA (based on Bloomberg)
EUR/JPY currency pair is currently headed towards a level of 100.77, while 100.00 is likely to be next target, since support at 102.49 has been breached. Resistances are located at 103.77, 104.86 and 105.72.
“There is a risk that inflation [in the UK] could prove to be more persistent”
– BoE (based on WSJ)
The price is getting closer to an uptrend at 1.5412/15, below which GBP/USD may encounter supports at 1.5272 and 1.5093, should the pair show weakness. From above GBP/USD is capped by resistances at 1.5562 and 1.5749.
“Nothing came out of the Fed meeting and that’s negative for the markets”
– Tokio Marine & Nichido Fire Insurance Co. (based on Bloomberg)
USD/JPY is bullish at the moment while approaching 78.28/30 which is not expected to halt upward movement of the pair. Further goals are situated at 78.66 and 80.12. The initial support is at 77.29, additional levels are at 77.11 and 76.22.
“The franc move has a lot to do with the growing skepticism surrounding Europe’s rescue plan”
– Swissquote Bank SA (based on Bloomberg)
Since a key resistance area has been overcome by USD/CHF, the pair is likely to surge further, up to subsequent levels at 0.9776/84, while longer term target is at 0.9950. Supports may be found at 0.9331/17 and 0.9240.