“Spain is currently benefiting from the perception among investors that its problems are less severe than Italy’s”
– Nicholas Spiro, managing director of Spiro Sovereign Strategy
Spain’s new conservaive government announced Friday 8.9 billion euros ($11.54 billion) in austerity measures in 2012, with the budget shorfall of 8 per cent of gross domesic product, well above a target of 6 per cent.
“We can still have a decent year here in the U.S. even with the rest of the world slowing down”
– John Ryding, chief economist at RDQ Economics
Rising consumer confidence, decrease in unemployment claims and better retail sales indicate the U.S. economy is gaining steam, despite hurdles in Europe and much of the rest of the world.
“Should the euro-zone crisis fail to ease over the coming months or even deteriorate further, this could well lead the U.K. economy to suffer significant contraction”
– Howard Archer, an economist at IHS Global Insight
U.K. month on month house prices edged lower 0.2% in December, said the Naionwide Building Society on Friday, as the debt crisis in Europe undermines consumer confidence and pushes up unemployment.
CHF
“Volumes are relatively quiet”
– Ken Polcari, a managing director at ICAP Plc’s equities unit
Swiss stocks closed little changed on Thursday after Italian bond auction and amid low trading volume on the market.
JPY
“Japan’s markets suffered from multiple negative factors that other countries didn’t face, such as the earthquake and the yen’s strength”
– Takashi Aoki, fund manager at Mizuho Asset Management Co.
Japanese stocks gained on Friday led by signals the U.S. economy is recovering. The Nikkei 225 advanced 0.67%, or 56.46 points, to 8,455.35, while the broader Topix grew 0.90%, or 6.49, to 728.61.
“Anti-euro bets are justified given the still-unresolved debt crisis and the poor growth prospects”
– Travelex Global Payments (based on CNBC)
The Euro – American Dollar pair is hovering below a tough resistance at 1.3000, while a key level is located at 1.3100/56.
“If the euro is going to be salvaged the market needs an injection of faith over the next few weeks. The Italian and Spanish auctions are key”
– Bank of New York Mellon (based on Reuters)
A close below 100.00 implies extension of the current dip, which may last up until 98.40 is contacted. However, this support is anticipated to hold the downward pressure and send the currency pair back up.
“The UK’s AAA rating is not as robust as it may otherwise be, but relatively, it stands out as a better credit than Europe”
– ING (based on Reuters)
Near-term outlook for GBP/USD is bearish. To overcome present weakness the pair has to pierce through a key resistance located at 1.5560/70.
“While indicators point to some improvement in overall [US] labor market conditions, the unemployment rate remains elevated”
– FOMC (based on Bloomberg)
A breach of 77.00 is likely to trigger further sell off. At the moment USD/JPY is heading toward initial support zone at 76.65/50, while a subsequent area is at 76.22/15.
“There’s still a very high level of unemployment despite the improvement that we’re seeing. There’s still a long way to go [for the US economy]”
– Credit Suisse (based on Bloomberg)
As long as the currency couple is supported by a strong area situated at 0.9350/60, the bias remains bullish.
German economy ploughing ahead if euro holds
The Bundesbank’s forecast of a German economy growing a paltry 0.6 percent in 2012 may be pessimistic. If the euro zone stays in place, its troubles may redound to Berlin’s advantage.
Economy gaining momentum, housing shows a pulse
New U.S. claims for jobless benefits rose last week but the underlying trend pointed to an improving labor market, while regional factory data showed the economy gaining momentum as the year ended.
China Factory Activity Shrinks, Growth Policies Eyed
China’s factory activity shrank again December as demand at home and abroad slackened, a purchasing managers’ survey showed on Friday, reinforcing the case for pro-growth policies to underpin the world’s second-largest economy.