“It’s the first French auction of the year and it has broadly gone as expected”
– Peter Goves, a fixed-income strategist at Citigroup Inc
French long-term bond yields rose on Thursday at its first auction in 2012 as investors are worried the country may lose its top notch AAA credit rating. France sold 4.02 and 2.165 billion euros of 10-year and 30-year bonds at an average rate of 3.29 and 3.97 per cent, respectively.
“Claims are moving in the right direction”
– Aneta Markowska, a senior economist at Societe Generale
The number of Americans claiming for unemployment benefits dropped to 371 thousand in the week ended December 31 from 387 thousand the week before, said the Department of Labor on Thursday. Economists expected the number of claimants to decline to 375 thousand.
“The debt crisis is still a key issue that undermined the euro”
– Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd.
U.K. service sector grew in December at its fastest pace since July. The Markit/Cips services purchasing managers’ index (PMI) advanced to 54 from 52.1 in November, said the Markit research agency on Monday. Reading above 50.0 indicates industry expansion.
“After the recent rally, the market is coming back to reality”
– Yves Marcais, a sales trader at Global Equities
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies, shed 0.52%, or 31.51 points, to 6,026.57. The broader Swiss Performance Index lost 0.63%, or 34.36 points, to 5,422.20.
“There isn’t an easy solution to Europe’s problems”
– Kiyoshi Ishigane, a senior strategist at Mitsubishi UFJ Asset Management Co.
Japanese stocks fell on concern the European debt crisis is escalating as Prime Minister Lucas Papademos said Greece is at “risk of a disorderly default”. The Nikkei 225 declined 0.83%, or 71.40 points, to 8,488.71, while the broader Topix decreased 0.90%, or 6.71, to 736.28.
“In the near-term the euro may target $1.25 and after that $1.20, that is now sort of the market consensus”
– Mizuho Corporate Bank (based on CNBC)
EUR/USD currency pair has dipped below 1.2860 and is currently near its 15-month low. At the moment it is heading towards 1.2530/88, while a long-term target lies at 1.2083 (200 month ma).
“The euro may drop to as low as 93 yen during 2012”
– Mizuho Corporate Bank (based on CNBC)
EUR/JPY has reached 11 year low and is likely to continue hovering below resistances at 100.77 and 100.15. The initial goal for the currency couple is at 94.92, although the pair will have to overcome supports at 97.90 and 95.90/40 first.
“Expectations for the UK economy became deflated much earlier than those for the rest of the world, so in that sense a lot of bad news is already in the price for sterling”
– RBC (based on Reuters)
As long as the Cable is capped by resistances at 1.5727 (55 day ma) and 1.5748, the outlook will remain negative. Bearish impetus is strengthening and is likely to last until at least 1.5272 is reached.
“Azumi’s comments on the euro versus the yen do not signal imminent currency intervention, as Japan’s past interventions have focused almost exclusively on the dollar/yen rate”
USD/JPY pair is gaining bullish momentum after it rebounded from 76.22. In the short-term 78.08 is expected to be tested once more, however, the chance of this level being overcome is minimal, since above lies a cluster of tough resistances.
“Most observers would agree that the euro floor has been in the [Swiss] national benefit so it’s unlikely to be challenged”
– Swissquote Bank SA (based on Bloomberg)
USD/CHF is anticipated to rally up to 0.9548/49 in the nearest future, as it has effortlessly pierced through a preceding resistance. Longer term target is at 0.9774/84. Dips should be covered by supports at 0.9317/04 and 0.9244.
Euro drops to 16-month low over bank concerns
The euro has dropped to its lowest rate against the dollar and pound in 16 months, as concerns continue over the health of Europe’s banks.
U.S. seen adding 150,000 jobs in December
The U.S. economy ended 2011 on an upswing and the last monthly jobs report of the year is expected to show further progress in hiring.
China mulls new energy “super ministry”
China is considering a proposal to create an energy “super-ministry” as part of a sweeping cabinet reshuffle in 2013, two independent sources said, a step that would help Beijing impose its will on an industry beset by bureaucratic infighting.