France’s economy expanded by 0.3% in Q3 as compared to 0.4% previously estimated. The disposable income also decelerated, reported France’s Insee statistics. Moreover, the country’s credit rating was placed on a pessimistic outlook by Fitch agency signaling probable downgrade in the next 12-18 months.
After struggling for several months Congress is ready to approve payroll tax reduction. Lawmakers agreed to extend payroll tax of 4.2% for two months. Obama praised the decision, emphasizing tax cut extension is crucial for US economy. Obama predicts every employed American to save around $1000 a year due to tax cut.
UK services output dropped to 6-month low in October. Services that account for about 75% of the nation’s economy tumbled 0.7% compared to September. Transport, communications and storage were down 2.5% whereas distribution, restaurants and hotels edged down 0.2%. Finance and business services lost 0.7%.
Official SNB exchange rate for EUR/CHF is at CHF 1.2229 today; 3-month LIBOR CHF remains at 0.05% (within target range of 0.00-0.25). Yields for 10-year Swiss Confederation bonds slid to 0.78% today. SMI stock index has gained 0.80% since opening bell, and is currently fluctuating around 5881 points.
Daily maximum: 1.3095
Daily minimum: 1.3052
The market forecast mean at 1.3049 was not reached today as investors positively perceived the Italian vote on austerity measures.
Daily Resistance: 1.3106; 1.3164; 1.3208. Daily Support: 1.3004; 1.2960; 1.2902. Daily Bias: Neutral.
Daily maximum: 102.20
Daily minimum: 101.91
The common European currency inched lower today on announcement the ECB might launch QE if the inflation risk occurs. The daily mean target at 101.99 has been pierced.
Daily Resistance: 102.32; 102.65; 102.95. Daily Support: 101.69; 101.39; 101.06. Daily Bias: Neutral.
Daily maximum: 1.5707
Daily minimum: 1.5664
The British pound slightly slumped on less than expected Mortgage Approvals; this indication of a weak property market caused the price to cross the daily forecast mean 1.5682.
Daily Resistance: 1.5720; 1.5764; 1.5799. Daily Support: 1.5641; 1.5606; 1.5562. Daily Bias: Bullish.
Daily maximum: 78.22
Daily minimum: 78.00
The American dollar traded above the 78.00 level as investors remain confident the US economy is on the right of recovery, therefore the daily forecast mean at 78.13 has been approached.
Daily Resistance: 78.24; 78.32; 78.44. Daily Support: 78.04; 77.92; 77.84. Daily Bias: Strongly bullish.
Daily minimum: 0.9182
USD/CHF is trading higher after the US durable goods sales rose by 3.8% in November versus expected 2.2%, causing the market participants’ forecast consensus at 0.9360 to breach.
Daily Resistance: 0.9404; 0.9448; 0.9497. Daily Support: 0.9311; 0.9262; 0.9218. Daily Bias: Neutral.
Italy to Kick the Cash Habit as Monti Cracks Down
The government on Dec. 4 reduced the maximum allowed cash payment to 1,000 euros from 2,500 euros.
US Republicans in climbdown on payroll tax deal
House of Representatives Republican Speaker John Boehner has agreed to accept a bipartisan deal to extend a payroll tax cut, in an abrupt Uturn.
China CIC sovereign fund to get $50 billion boost
China’s $410 billion sovereign wealth fund China Investment Corp. CIC.UL is set to receive additional funding of up to $50 billion, two sources with knowledge of the matter told Reuters on Friday.