The EU announced it has reached a preliminary agreement on total ban of Iranian oil exports, the measure supported by the US and aimed at reducing Iran’s oil revenues. The agreement has not been debated yet and the time of the ban coming in force has not been set. Iran claims its economy is vulnerable to the ban as the largest part of oil exports goes to the emerging markets in Asia.
The number of US claims for unemployment benefits declined last week signalling positive outlook for country’s labour market at the beginning of the year. Jobless claims dropped by 15 000 to 372 000 previous week, said US Labor Department today.
UK’s services sector grew more than expected in December. The services PMI increased to 54.0 last month from 52.1 in the preceding month, hitting five-month high. Analysts expected the figure to rise by 51.6. Services sector increased by 0.3% approaching 0.4% in Q4, lower than 0.7% in Q3.
Monetary base (y/y), the change in the total quantity of domestic currency in circulation and current account deposits held at the BOJ, grew only by 13.5% in December 2011, in comparison with the same month a year before.
The official SNB exchange rate for EUR/CHF is 1.2184 today; yield on 10-year Swiss Confederation bonds declined to 0.70%. 3-month LIBOR CHF stands at 0.05%, and is within the target range of 0.00-0.25%.
Daily maximum: 1.2943
Daily minimum: 1.2783
The common European currency depreciated against the American dollar, leaving the daily forecast mean (1.2964) intact on declining German Retail Sales and strong US employment change. Daily Resistance: 1.3046; 1.3146; 1.3221. Daily Support: 1.2871; 1.2796; 1.2696. Daily Bias: Bearish.
Daily maximum: 99.34
Daily minimum: 98.48
EUR/JPY plummeted on Thursday as German retail sales declined and worries intensified that the EU debt crisis is worsening; the market participants’ mean at 99.45 remained untapped. Daily Resistance: 100.00; 100.72; 101.20. Daily Support: 98.80; 98.32; 97.60. Daily Bias: Bearish.
Daily maximum: 1.5628
Daily minimum: 1.5468
The British pound lost ground versus the Dollar on more-than-forecast US non-farm employment data, suggesting the US economy is successfully recovering, though the daily target at 1.5622 has been approached. Daily Resistance: 1.5666; 1.5711; 1.5755. Daily Support: 1.5577; 1.5533; 1.5488. Daily Bias: Neutral.
Daily maximum: 77.23
Daily minimum: 76.66
USD declined today as investors preferred yens over the dollar on EU debt worries, causing the pair to move breach the 76.70 mark for Thursday. Daily Resistance: 76.81; 76.94; 77.04. Daily Support: 76.58; 76.48; 76.35. Daily Bias: Bearish.
Daily maximum: 0.9528
Daily minimum: 0.9414
The market forecast mean for Tuesday (0.9369) has been breached as investors sold off Swiss Francs versus USD on more-than-expected US employment change data. Daily Resistance: 0.9473; 0.9533; 0.9617. Daily Support: 0.9329; 0.9245; 0.9185. Daily Bias: Neutral.
Euro-Zone Debt Markets Suffer First Hit of 2012
Euro-zone government debt markets suffered their first real hit of the new year Thursday amid recurring concerns over the solidity of the region’s banking system and the threat of Hungary and Greece defaulting on their debt.
Private hiring surges, jobless claims dip
Private-sector hiring surged in December as employers added 325,000 new workers while claims for jobless benefits fell, raising hope that recent labor market improvement would continue in 2012.
HSBC China Services PMI Steady, Economy Subdued
China’s services sector entered a seventh straight year of expansion in December, a survey of purchasing managers showed on Thursday, but a slowdown in the world’s second-biggest economy saw overall levels of activity mired at three-month lows.