“[Confidence] figures seem to indicate that the euro zone recession is bottoming out”
– Peter Vanden Houte, an economist at ING Group in Brussels
Euro-area economic confidence improved less than expected in January as the region’s economy is moving toward a recession despite leaders’ efforts to revive growth.
“Despite the healthy gains in income, U.S. consumers appear to have rediscovered a new sense of frugality”
– Millan Mulraine, an economist at TD Securities
U.S. consumer spending stalled in December said Bureau of Economic Analysis on Monday, a sign consumers attempt to restore depleted savings.
“Housing market is dogged by uncertainty”
– Richard Donnell, director of research at Hometrack
U.K. month-on-month house prices remained unchanged in January, after falling 0.2 per cent in November and December, estimated the property researcher Hometrack Ltd. Values fell 1.6 per cent from January 2011.
“Market participants are somehow realizing again that the Greek problem is far from over”
– Stephane Ekolo, chief European strategist at Market Securities
Swiss stocks lost ground on Monday after Greece and private bondholders failed to finalize a debt swap agreement the previous week.
“Stocks have been rising since the middle of this month and now investors may want to sell to lock in profit”
– Kiyoshi Ishigane a Tokyo-based strategist at Mitsubishi UFJ Asset Management Co.
Japanese stocks fell on Monday after the U.S. economy expanded less than expected, a worrying sign for Asian exporters. The Nikkei 225 declined 0.54%, or 48.17 points, to 8,793.05, while the broader Topix shed 0.54%, or 4.12, to 757.01.
“If we do get a break of that $1.3244 retracement level, then maybe we get a more significant short-covering”
– Faros Trading (based on CNBC)
A close below 1.3120 would indicate the end of bullish correction and continuation of Euro’s depreciation. The price should then fall to 1.2900/1.2855 and eventually tumble down to 1.2530/90.
“Everybody likes the yen because it’s not the euro”
– FX Solutions (based on WSJ)
EUR/JPY did not manage to challenge a strong resistance area at 102.55/60 and is now selling off. The initial support level is located at 99.00/98.90, though the dip might extend down to 97.05.
“The [UK] economic outlook is not great. It’s better than the euro zone to some extent, but not a huge amount”
– AIB (based on Reuters)
GBP/USD is expected to make an attempt to break through a tough resistance situated at 1.5770/80. In case the currency pair is successful, it will target 1.5810 and 1.5964 next. Supports at 1.5645 and 1.5570 should cover losses if any occur.
“The pressure is on the downside for dollar-yen”
– Morgan Stanley (based on Bloomberg)
Support line at 76.22 is being pressured at the moment. Nonetheless, it should remain unbroken and defend subsequent levels – 75.31 and 75.00/74.90. In the long-term USD/JPY is perceived as bullish despite its current weakness.
“The dollar is getting a lift as worries aboutGreece and the European Union summit dent risk appetite”
The currency couple is anticipated to stabilise near 0.9080/65 and commence recovering. A break of resistance at 0.9185 would reignite bullish momentum which in turn would drag the pair up to 0.9340.
EU summit: UK and Czechs refuse to join fiscal compact
Twenty-five of the EU’s 27 member states have agreed to join a fiscal treaty to enforce budget discipline. The Czech Republic and the UK refused to sign up. UK Prime Minister David Cameron said his government would act if the treaty threatened UK interests.
Home Prices in U.S. Probably Decreased at Slower Rate as Market Stabilizedn
Home prices in 20 U.S. cities probably fell at a slower pace in the year to November, pointing to limited improvement in the residential real estate market, economists said before reports today.
China to make Shanghai global yuan hub by 2015
China intends to establish Shanghai as the global centre for yuan trading, clearing and pricing over the next three years as part of broader plans to make the commercial hub an international financial centre by 2020.