“The move [by the ECB] in itself will not lead to any improvement in [banks’] credit ratings”
– Scott Bugie, S&P’s Managing Director
S&P top official warned Friday that record 489 billion euros allotted between 523 European banks by the ECB will not protect them from threatened rating downgrades.
“All of the housing numbers have looked a lot better recently”
– Mark Vitner, a senior economist at Wells Fargo Securities LLC
Sales of new U.S. homes advanced to a seven month high in November, according to the data published by the Census Bureau. The number of new houses sold rose 1.6 per cent to an annualized rate of 315 thousand from 310 thousand in October.
“Households and businesses lack the confidence needed to seek credit for spending or investment”
– David Dooks, BBA statistics director
Number of approved mortgages increased to 34.7 thousand in November down by 0.5 thousand from the previous month, according to the data published by the British Banker’s Association. Analysts expected the reading to increase to 36.3 thousand.
CHF
“Recent positive economic data out of the U.S. have helped revive the markets”
– Manish Singh, head of investment at Crossbridge Capital
Swiss stocks rose for a fifth consecutive day on Friday after reports on new home sales and durable goods showed the world&r squo;s largest economy is recovering.
JPY
“The ECB doesn’t seem to have stepped up to the plate for bond buying, which I think is negative”
– Shane Oliver, head of investment strategy at AMP Capital Investors Ltd.
Japanese banks were closed on Friday in observance of the Emperor’s Birthday.
“We have got an informal signal from Standard & Poor’s that they [verdicts on Eurozone countries] will come only in January”
– CNBC
Resistance level at 1.3059 has successfully repelled EUR/USD currency pair, therefore the price is likely to dip down to a support located at 1.3041/38. In case the latter level is breached, the next target will be situated at 1.2950.
“Excessive pessimism has receded at the end of the year, and what we’re seeing is some unwinding of safe-haven buying of currencies like the dollar and yen”
– Mizuho Securities Co. (based on Bloomberg)
While being capped by a cluster of resistances at 101.84 (22 hour ma and a downtrend), the pair is unlikely to show extensive rallies. On the contrary, it is expected to fall down to 101.76 first and then breach this level before stepping lower.
“The view is that we will likely see the UK dip into a recession in H1. Economic weakness will be a constant reminder that the UK’s AAA status is not guaranteed by any means”
– Investec (based on Reuters)
The Cable has quickly sold off from 22 hour ma and is now heading toward 1.5596, which is likely to hold for some time. Although in the longer term this should be breached. A key resistance is situated at 1.5665.
“Japan’s fiscal situation is worsening”
– Nomura Securities Co. (based on Bloomberg)
The price remains below a downtrend at 78.04, implying that the bearish impetus might strengthen, even though USD/JPY is currently underpinned by 77.96. Should the initial support be broken, 77.83 will be reached next.
“Although the introduction of the minimum exchange rate for the franc against the euro eased the situation for companies, the exchange rate situation remained a focal point of attention”
– SNB (based on Bloomberg)
The American Dollar – Swiss Franc currency pair hovers just above an immediate support line at 0.9356, while a subsequent level is at 0.9318 (22 day ma). In case USD/CHF surges, it will encounter resistances at 0.9381, while a key level is at 0.9545.
Germany Will Help Europe Overcome Crisis, Wulff to Say in Christmas Speech
Germany will help the rest of Europe stem the debt crisis because taking an anti-European stance is “wrong,” said President Christian Wulff, a party ally of Chancellor Angela Merkel.
Consumer, business spending point to slower growth
Consumer spending was tepid in November and a gauge of business investment fell for a second straight month, suggesting the economy lost some of its recent momentum.
China, Japan strengthen financial, currency ties
Chinese and Japanese leaders pledged to strengthen bilateral financial cooperation, and the two countries will facilitate the use of their currencies in cross-border trade settlements, China’s central bank said Sunday.