Spain’s industrial output tumbled in November, declining the most in the last two years. The fourth-largest economy in the EU signaled contraction even before the government started to implement the austerity measures. Adjusted industrial output lost 7% in November on a yearly basis, reported the National Statistics Institute in Madrid.
Mitt Romney paved his position as the main Republican presidential candidate yesterday after he won in the New Hampshire. Romney surpassed his closed rival by 16 percentage votes in New Hampshire. Ron Paul of Texas was second with 23% of the vote followed by Jon Huntsman with 17%. Romney told his supporters his preparing new confrontation against Obama.
UK’s goods trade deficit widened to GBP8.6 billion in November as compared to GBP7.9 billion in October, reported the UK Office for National Statistics. Experts predicted the deficit to widen to GBP8.3 billion in November. The total deficit widened to GBP2.6 billion while analysts expected it to widen to GBP2.4 billion. After the data release, the Pound saw losses against the USD and the pair GBP/USD is currently trading at 1.5473, edging down 0.06%.
The official SNB exchange rate for EUR/CHF is 1.2127 today; yield on 10-year Swiss Confederation bonds increased to 0.79%. 3-month LIBOR CHF stands at 0.06%, and is within the target range of 0.00-0.25%.
Japan currently is not planning to take part in international boycott of Iranian oil imports, reported Dow Jones Newswires on Wednesday. Tokyo considers the fuel shortage may have a negative impact on country’s recovery from March earthquake and tsunami. Announcement appears shortly before Tim Geithner’s visit to Tokyo to discuss the embargo.
Daily maximum: 1.2789
Daily minimum: 1.2676
TEUR/USD pierced the daily forecast mean at 1.2777 and moved lower on announcement that the EU parliament objected the recent EU financial treaty. Daily Resistance: 1.2815; 1.2855; 1.2891. Daily Support: 1.2739; 1.2703; 1.2663. Daily Bias: Bearish.
Daily maximum: 98.37
Daily minimum: 97.61
The single European commenced a decline today versus the Japanese on downward revise of the final GDP (0.1% vs. 0.2% estimate), causing the daily market participants’ target (98.19) to be pierced. Daily Resistance: 98.43; 98.70; 98.93. Daily Support: 97.93; 97.70; 97.43. Daily Bias: Bearish.
Daily maximum: 1.5487
Daily minimum: 1.5353
The bearish mood took over the British national currency today against the American dollar after the UK balance shrank more than expected (-8.6B/-83B est.); the daily target at 1.5478 was breached today. Daily Resistance: 1.5507; 1.5532; 1.5563. Daily Support: 1.5451; 1.5420; 1.5395. Daily Bias: Neutral.
Daily maximum: 77.04
Daily minimum: 76.86
The Japanese yen strengthened today as the EU debt woes continue to worry investors. The daily forecast mean at 76.95 has been approached. Daily Resistance: 76.90; 76.96; 77.03. Daily Support: 76.77; 76.70; 76.64. Daily Bias: Strongly bearish.
Daily maximum: 0.9560
Daily minimum: 0.9483
The daily market forecast mean at 0.9490 has been pierced as the pair recovered on more than expected inventories, paring early weekly losses. Daily Resistance: 0.9513; 0.9535; 0.9559. Daily Support: 0.9467; 0.9443; 0.9421. Daily Bias: Bullish.
ECB must do more to prevent euro collapse: Fitch
The European Central Bank should ramp up its buying of troubled euro zone debt to support Italy and prevent a “cataclysmic” collapse of the euro, David Riley, the head of sovereign ratings for Fitch, said on Wednesday.
Bernanke Doubles Down on Fed Mortgage Bet
Ben S. Bernanke is signaling his willingness to double down on a three-year bet that’s failed to revive housing, showing the extent of the Federal Reserve chairman’s effort to wrest a recovery from the deepest recession.
Shirakawa Says Central Banks ‘Buy Time’ While ‘Structural Reforms’ Needed
Bank of Japan Governor Masaaki Shirakawa said there are limits to what monetary policy can achieve and governments must implement “necessary” reforms to aid the global economy.