Stories announcements over Saturday and Sunday helped put a little pressure onto the EU Dollar during the Asian session as ig index newspapers in Greece let slip that the Private Sector participation program (PSI) are meeting internal Problems politically, which is leading the IMF to call for new debt restructuring techniques and increase in the agreed-upon loss levels that'll be shouldered by current holders of Greek bonds (potentially as high as 80 percent in losses).
The Euro dollar was broadly lower to start the week (especially against the Japanese Yen) but the US Greenback was also being purchased after comments from Fed Reserve member Bullard who said the Fed’s prior QE methods had been a hit (forestalling a possibly deflationary environment), and that a 3rd round of quantitative easing won't be obligatory. The US Buck index is now at its highest levels since the 3rd quarter of 2010.
Macro information came out of China over Saturday and Sunday, with loan applications, new home sales and money supply figures being released. Both pieces of data proved that the central bank is attempting to make monetary conditions more accommodative (new Yuan loans rose to 640.5 bill for December from 562.2 bn. in Nov), which was better than the feeling estimate. M2 cash supply increased by 13.6 percent on a regular basis, which is a virtually 1 % rise from the previous month. The bigger story nonetheless , was the new home sales report, which showed clearly that housing prices in Beijing dropped a huge 60 % on a yearly basis. Transactional volumes were seen at their lowest levels in 10 years, so that the information shows the often-discussed “housing bubble” seen in China is coming to a close.
On balance, the weekend information was risk negative and equity markets we also dragged lower (reversing off recent highs). Asian markets were all trading negative (with the exception of the Shanghai composite index) after the release of lower monthly store sales works out of Australia. The Aussie info came in unchanged (against expectations of a 0.4 percent rise) and lower than what was seen in the previous month. There's still some chance for positivism , however , as this info doesn't reflect purchases made during the weeks leading in to Yuletide.
The primary story from Fri. was the US Non Farm payrolls release, which were terribly robust, coming in at a rise of 200,000 (vs 155,000 expected), with many of the increases coming from the private sector. The jobless rate was seen at 8.5 percent but some researchers have suggested this is generally the result of declines in the collaboration rate. The US Dollar closed the week higher after the releases.
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This post was written by admin on January 19, 2012
