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JPN Confidence Among Manufacturers Plummets in 4th Quarter Confidence among Japanese manufacturers fell the most on record in the 4th quarter, as exports collapsed amid a deepening global recession. The BSI sentiment index fell to -44.5 this quarter compared with -10 in the 3rd quarter. Exports were down 26.7% on the year in November as demand from the US, Europe and even China plummeted and Japanese companies and households have cut back sharply on spending as well. NZD/JPY - Kiwi Rallies vs Yen, But Stays Within Range
The Yen was generally lower today, with the New Zealand Dollar climbing higher in a continuation of ranging conditions seen the last 4 sessions. The pair set an intra day low near 51.20 overnight, rallied at the beginning of the European session and kept those gains in NY trading. GBP/CHF - Swiss Franc Continues Rally vs Pound
The Swiss Franc continued its gains against its main rivals, and had a strong move vs. the Pound today in otherwise light trading. The Pound-Franc pair broke below support at 1.60, in a downmove that spanned 270 pips. The Pound is being pressured by interest rate expectations while the Franc is benefiting from safe-haven flows. US Jobless Claims Rise 30K In the US, jobless claims rose by 30K to 586K for the week ending December 20th. That figure was far above expectations, the highest since November 1982, and continues to show a worsening situation in the labor market. US Personal Spending Down 0.6% in Nov US consumer spending fell 0.6% in November, which was a smaller than expected decline. It was the 5th straight month that spending was negative. Personal income dropped 0.2%. Personal saving as a percentage of disposable personal income was up 2.8% in Nov, up from 2.4% in Oct. The saving rate is increasing the past few months as the economy deteriorates and more people put away money for a rainy day, which for many people is a pink slip. US Durable Goods Orders Decline Less Than Expected Demand for long lasting goods fell 1% in November, mainly as a result of a decline in the transportation sector. The result was better than expected but follows a downwardly revised 8.4% decrease in October. Orders in the transportation sector decreased 7.4% following a plunge of 12.7% in October. On the bright note, a key barometer of business equipment spending - orders for non-defense capital goods excluding aircraft - rose by 4.7%, after decreasing 6.6% in October. USD/JPY - Dollar Rally vs Yen Stalls
The Dollar-Yen which had been gaining in a rally the past 4 sessions, stalled around the 91 level, and fell back down to test support at 90.25. The Dollar managed another weak rally in NY trading as stocks rose in the US. Following the close of US equity markets early today, the pair gave up some of those later gains. Tonight's and Tomorrow's Releases
Tonight, Japan
will post its Meeting minutes, corporate service price index, and housing
starts.
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