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EUR Money Supply Growth Slows Starting with some fundamental data from the Euro-zone, we see that money supply growth slowed in November. On the year M3 money supply was up 7.8% compared to 8.7% in October. The annual rate of the growth of private loans slowed to 7.1% from 7.8%. SWZ UBC Consumption Indicators Falls to Three and A Half Year Low In Switzerland, the UBC consumption indicator fell to 0.96, the lowest reading in three and a half years. The heavy decline in November can be traced to a weakening of all five sub-indicators, pointing to weaker propensity to consume. GER Consumer Prices Rise Smaller Than Expected in Germany German consumer prices were up 0.3% on the month in December, preliminary data showed today. That was lower than forecasts, but marks the first return to positive territory for the monthly rate in 4 months. The pace in the rise of annual prices slowed to 1.1%, putting the annual rate far below the threshold of 2%, which plays an important part in the deliberations of the ECB. EUR/CHF - Euro Reclaims Yesterday's Losses From Swiss Franc
The Euro managed to pare some of its losses suffered yesterday against the Swiss Franc. The pair established support at 1.4770 and climbed around 200 pips overnight. At around 1.50, the pair met a downward trendline and fell back in favor of the Franc. EUR/USD - Euro Retraces Half of Yesterday's Fall
The Euro-Dollar traded choppy today, following the 400 pip downmove in yesterday's session. The Euro climbed 200 pips during the Asian session, sold down at the start of the European session, and then bought up again after testing the 1.40 level. By the middle of the NY session, the pair had retraced about 50% of yesterday's move.
US S&P/Case Shiller House Price Indexes Shows Record Pace Declines
In the US, housing prices in major cities saw record annual declines in October. The Standard & Poor/Case-Shiller 20 city index fell 18% while the 10-city index is down 19.1% on the year. The continuing fall in prices will act to constrain households as they see a major store of wealth continue to deteriorate. Conditions are still not there for a rebound in the housing market despite the steep cuts in prices. As we saw last week, new and existing home sales figures plunged as buyers remain on the sidelines, or those wanting to purchase homes are finding it hard to finance lending from banks. US Consumer Confidence Hits Record Low In another piece of bad news for the US economy, consumer confidence, as measured by the Conference Board, fell to an all time low. The overall index plunged 6.9 points to 38.0 in December, with the present situation sub-index plummeting to 29.4 from 42.2. Those saying business conditions are bad and jobs are harder to find increased. US Chicago PMI Rises Slightly In a final release from the US, the Chicago PMI saw a slight increase in December, surprising forecasts on the upside. Still the small uptick follows a sharp drop that manifested in October. The prices paid sub-index fell 20 points reflecting lower prices that companies can charge. USD/JPY - Dollar Gives Up Overnight Gains
Stocks in the US brushed off the weak fundamental data and were up. The Dow Jones index hovered about 100 points higher on news the government would extend further bailout to GM's financial arm. After a rise in the pair in Asian trading, the pair fell back down to a new line of support at the 90 level. NY trading saw the pair consolidating. USD/CAD - Loonie Pressured, But Recovers to Powerline
Yesterday we mentioned how the US Dollar-Canadian Dollar pair was caught in a consolidation wedge pattern. Today, the pair broke out of it on the upside, as the Loonie was pressured by worries over demand for crude oil in this deepening global recession. The pair jumped 170 pips at the start of NY trading, but then managed to pare down most of those gains. It tested the trendline that had been resistance near the 1.22 level and at least in mid afternoon NY trading it transformed into a level of support. Overnight's and Tomorrow's Releases The fundamental docket slows down again for the next session. There are only two significant releases, tonight Australia posts its measure of private sector credit and tomorrow the US reveals its weekly jobless claims. |
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