“The [Credit Agricole SA] losses are enormous”
– Jacques-Pascal Porta, fund manager at Ofi Gestion Privee
Credit Agricole SA, France’s second largest bank by assets, will make losses in 2011, write of 2.5 billion euros worth of assets and cut approximately 2,350 jobs as European debt crisis looms. Fitch and Moody’s downgraded the company’s credit rating this month.
“Inflation will crest around here. This will give the Fed more comfort in terms of implementing further monetary policy”
– Jacob Oubina, a senior U.S. economist at RBC Capital Markets LLC
U.S. month on month consumer prices stagnated in November after declining 0.1 per cent in October, said the Bureau of Labor Statistics on Friday. Prices were little changed as gasoline and food prices dropped, supporting the Federal Reserve view that inflation will remain stable.
“We will participate in those [eurozone fiscal pact] discussions”
– British government spokesman
U.K. has been invited to participate in discussion on a eurozone fiscal pact, despite rejecting to sign up to it, said the government on Thursday. Prime Minister David Cameron voted against changes to the EU treaty at a summit in Brussels December 9.
Swiss stocks to perform ”very well in 2012”
– Sean Darby, global head of equity strategy at Jefferies Group Inc.
Swiss stocks declined on Friday as Standard and Poor’s warned that European exports may weaken further in 2012. Despite this forecast, Swiss stocks will perform “very wel l in 2012,” said Sean Darby, global head of equity strategy at Jefferies Group Inc.
“The European economy is heading toward recession next year, and I think it’s going to continue to weigh on markets”
– Stephen Halmarick, head of investment markets research at Colonial First State Global Asset Management
Japanese stocks closed mixed on Friday as investors’ worries over the eurozone economy were partly offset by better-than-expected employment data in the U.S. The Nikkei 225 gained 0.29%, or 24.35 points, to 8,401.72, while the broader Topix shed 0.20%, or 1.46, to 723.56.
“Rising geopolitical risks are causing people to buy the dollar and sell stocks”
– Sumitomo Trust & Banking Co. (based on Bloomberg)
Bearish movement of EUR/USD seems to be decelerating while the pair is approaching a support level at 1.2860. However, this level is unlikely to provide sufficient support and therefore is expected to be eventually breached and pave the way to reaching 1.2089.
“More integration and more effective instruments are needed. We are not yet there”
– Vittorio Grilli, Italian Deputy Economy Minister (based on Reuters)
EUR/JPY currency couple is heading toward 100.77 at the moment. In case this support is violated, the next target lies at 99.92. Rallies are expected to be capped by resistances located at 103.04, 104.73 and 105.72.
“Looking ahead, both the level of sterling and developments in the rest of the world are likely to be crucial to the United Kingdom’s trade performance”
– BOE report (based on WSJ)
The pair has successfully bounced off 1.5443/20 and is currently recovering, although resistances situated at 1.5562 and 1.5744 might impede its further advancement. The weekly outlook thus remains neutral.
“Risk proxies are selling off, and forex is taking the lead from equities markets”
– Royal Bank of Canada (based on Reuters)
USD/JPY is facing a number of strong resistances located above, but nevertheless is expected to surge while breaking through 78.14/47, 79.08 and 80.00. Dips are to be limited by supports at 77.29, 77.27/13 and 76.22.
“As we enter 2012, neither gold nor the Swiss franc retains a safe haven status”
– UBS Wealth Management (based on Bloomberg)
Following a contraction which should be halted by 0.9300 USD/CHF is likely to carry on moving upwards while encountering resistances at 0.9548 and 0.9572, as the long-term target is situated at 0.9776/84.