The pair remains under pressure as more analysts predict the new year to be extremely challenging for the Eurozone. There is 99% probability that the single currency will not exist over the next 10 years, the CEBR expert reported. According to the CEBR forecast, the Britain economic growth will contract in the Q1 of 2012.
Hiring in US probably advanced in December extending increase for a second straight month, said economists questioned by Bloomberg. According to median forecast, payrolls soared to 150 000 in December compared to 120 000 in November. Labor Department will issue data on January 6.
David Cameron today serves notice that the economy faces another tough – and possibly worse – year as he admits that Britain may only win a temporary respite from the crisis in the eurozone. As Angela Merkel and Nicolas Sarkozy warn of a bleak year ahead, the prime minister uses his new year message to declare that Britain can only secure “some protection” from the “debt storms”.
The Swiss franc rose against a majority of its most-traded counterparts as Europe’s debt crisis spurred demand for safety.
Manufacturing expanded in India and China in December, indicating Asia’s fastest-growing major economies have so far withstood the fallout from Europe’s sovereign debt crisis.
“The figures from today show we’re absolutely not seeing a hard landing,” said Andreas Rees, an economist at UniCredit Markets & Investment Banking in Munich. “There’s no massive uncertainty shock around the globe that’s weighing heavily on investment activity.”
Daily maximum: 1.2971
Daily minimum: 1.2922
The pair started New Year with breaching the daily forecast mean at 1.2946 and slipping lower after the EU manufacturing output contracted for the fifth month in a row. Daily Resistance: 1.2992; 1.3043; 1.3087. Daily Support: 1.2897; 1.2853; 1.2802. Daily Bias: Bearish.
Daily maximum: 99.81
Daily minimum: 99.44
The euro continued trading in a bearish trend after the manufacturing output shrank for the fifth consecutive month, trading below 100.00 on Monday. Daily Resistance: 100.28; 101.10; 101.51. Daily Support: 99.05; 98.64; 97.82. Daily Bias: Strongly bearish.
Daily maximum: 1.5542
Daily minimum: 1.5476
The British pound moved downwards today after the UK Prime Minister David Cameron said the economy is vulnerable to the EZ turmoil; the daily market participants’ mean target (1.5509) has been breached. Daily Resistance: 1.5601; 1.5672; 1.5772. Daily Support: 1.5430; 1.5330; 1.5259. Daily Bias: Strongly bearish.
Daily maximum: 77.10
Daily minimum: 76.90
USD/JPY added to losses today as investors bought safe-haven yens against USD as investors flee to the Japanese currency on debt woes, causing the daily target at 77.07 to breach. Daily Resistance: 77.44; 78.02; 78.31. Daily Support: 76.57; 76.28; 75.70. Daily Bias: Strongly bearish.
Daily maximum: 0.9411
Daily minimum: 0.9353
The daily market forecast mean at 0.9383 has been pierced on fears the EU economy might commit a recession spreading to the US. Daily Resistance: 0.9426; 0.9470; 0.9512. Daily Support: 0.9340; 0.9298; 0.9254. Daily Bias: Neutral.
Ministers Issue Fresh Warning on Spanish Deficit
Spain’s government will approve further deficit-reduction measures this week, on top of the bombshell €15 billion package of tax increases and spending cuts they announced only days ago, ministers said Monday.
U.S. jobs data likely to confirm momentum
The first week of the new year will reveal a lot about U.S. economy in the final month of the old year.
Indonesia Inflation Eases; Export Growth Lowest in 2 Years
Indonesia’s export growth slowed to its lowest level in 25 months in November, while annual inflation eased in December, reinforcing expectations that the central bank will likely refrain from cutting rates until February.