Big rethink is necessary in the Euro Zone within world’s economy, said Angela Merkel at the World Economic Forum. Structural reforms aimed at creating new jobs are crucial, she added. Indebted Euro Zone is the most discussed issue at the forum. Many consider Germany and other strong economies have to inject more money into rescue fund.
Due to weak recovery and slowing inflation in the US, market speculation on possible further easing has skyrocketed. On the last announcement Ben Bernanke claimed that Fed was unlikely to increase interest rates until 2014, indicating the weak state of the American economy.
UK Prime Minister David Cameron claimed today during his speech in Davos forum that European officials should be bolder if they wish to calm the current economic turmoil. Asked about the recently developed deficit reduction plan, Cameron claimed it had helped the UK economy to shake off its economic doldrums.
The official SNB exchange rate for EUR/CHF is 1.2072 today; yield on 10-year Swiss Confederation bonds decreased to 0.79%. 3-month LIBOR CHF stands at 0.07%, and is within the target range of 0.00-0.25%. Swiss SMI stock index has gained 0.09% since the opening bell, and is currently fluctuating around 6079 points.
Japan’s Nikkei Stock Average opened higher on Thursday but erased gains later and closed into negative area, dropping 0.41% or 36.52 points to 8,847.17. Exporters experienced the biggest losses as Toshiba Corp. declined 1.7%, Sharp Corp. edged down 0.6% and Hitachi Ltd. gave up 0.9%. Nintendo Co and NEC Corp. lost 0.9% and 1.2% respectively ahead of their earnings reports.
Daily maximum: 1.3183
Daily minimum: 1.3091
EUR/USD rose today on disappointing US unemployment claims (377K act./371K est.), causing the daily forecast mean (1.3067) to breach. Daily Resistance: 1.3173; 1.3242; 1.3363. Daily Support: 1.2983; 1.2862; 1.2793. Daily Bias: Strongly bullish.
Daily maximum: 102.20
Daily minimum: 101.59
101.71 was hit today as the pair moved upwards on higher than expected GfK German Consumer Climate (5.9 act./5.6 est.). Daily Resistance: 102.26; 102.60; 103.24. Daily Support: 101.28; 100.64; 100.30. Daily Bias: Strongly bullish.
Daily maximum: 1.5718
Daily minimum: 1.5651
GBP/USD continued its rally as the American dollar weakened on less-than-forecast US New Home Sales (307K act./321K est.). Daily Resistance: 1.5713; 1.5770; 1.5862. Daily Support: 1.5564; 1.5472; 1.5415. Daily Bias: Bullish.
Daily maximum: 77.80
Daily minimum: 77.32
USD/JPY advanced on strong monthly Core Durable Goods Orders (2.1% act./0.9% est.), though the daily forecast mean (77.84) has not been pierced yet. Daily Resistance: 78.18; 78.59; 78.90. Daily Support: 77.46; 77.15; 76.74. Daily Bias: Strongly bullish.
Daily maximum: 0.9228
Daily minimum: 0.9157
USD/CHF committed a much deeper correction today, leaving the daily market participants’ (0.9242) untapped as investors were disappointed by poor data on US new home sales (307K act./321K est.). Daily Resistance: 0.9301; 0.9388; 0.9436. Daily Support: 0.9166; 0.9118; 0.9031. Daily Bias: Strongly bearish.
ECB at centre as Greek debt talks resume
Greece’s tortuous negotiations over a debt swap with private creditors entered a new phase on Thursday with focus on how much the European Central Bank and other public creditors may need to contribute.
Jobless Claims Rise; Durable Goods Orders Jump 3%
The number of people seeking unemployment benefits rose last week to a seasonally adjusted 377,000, up from a nearly four-year low the previous week. But the longer-term trend is pointing to a healthier job market.
NEC to Eliminate 10,000 Jobs After Loss
NEC Corp. (6701), forecasting its third annual loss in four years, will cut 10,000 jobs as slower global growth reduces demand for its mobile phones, computers and wireless gear.