As It Strengthens The Case

U.S. Review Modest Growth on a Broadening Base - The underlying tone of the recent economic reports remains consistent with modest economic growth. Consumer spending ended the first quarter on a solid note and spending is now on track to grow at a 2 percent pace in the second quarter. - Reports from the regional manufacturing surveys showed some weakness but the National ISM report came in stronger than expected. The nonmanufacturing survey, however, came in below expectations. - Nonfarm employment rose by 115,000 jobs in April and the unemployment rate fell 0.1 percent to 8.1 percent. Modest Growth on a Broadening Base This week's ISM report came in better than expected, rising 1.4 points to 54.8 in April, which greatly relieves fears built up from the weaker factory orders ...

Fundamental Analysis EUR Deutsche Bank, the German biggest lender posted a 33% drop in its first quarter profit, citing debt crisis as a negative force that curbed trading. Net income declined to EUR 1.38 billion (USD 1.82 billion) compared to EUR 2.06 billion in the same period last year. Economists questioned by Bloomberg expected the profit to decrease less to EUR 1.56 billion. Deutsche Bank shares have added 16% this year. USD Crude oil fluctuated close to a one-week record high as Fed claimed they expect the economic growth to advance, encouraging the speculation that fuel demand will increase. Moreover Iran announced it may stop its nuclear expansion. June crude traded at USD 104.07 a barrel after climbing USD 0.57 yesterday. Brent oil to be delivered in June traded at USD 119 a ...

Fundamental Analysis EUR "It is looking more and more likely that Spain is going to have some form of a bailout" - Lyn Graham-Taylor, Rabobank strategist Spain's cost of borrowing on the international debt markets breached the level of 6 per cent for 10-year bonds on Monday, mounting pressure on the European Central Bank to conduct new round of bond purchases. USD "There is no sign that higher fuel prices have damaged consumer sentiment and spending" - Jeremy Lawson, a senior U.S. economist at BNP Paribas U.S. month on month retail sales rose by more than expected in March, said the Census Bureau on Monday. Total retail sales increased 0.8 per cent the previous month after increasing 1.0 per cent in February. GBP " is not a universal signal of a housing-market recovery" - Miles ...

Fundamental Analysis EUR Spain's EUR 10 billion austerity measures did not ease investor worries the country is likely to be the next to demand a bailout. The borrowing costs for Spanish benchmark 10-year bills rallied almost 20 basis points to 5.94% on Tuesday after Miguel Angel Fernandez Ordonez, the Governor of the Bank of Spain said the country's financials may need extra capital in case the economy slows more than predicted. USD Canadian currency declined reaching a 6-week record low against US Dollar on concern European crisis is regaining momentum amid slowing US recovery. The loonie fell 0.7% to CAD 1.0045 on Tuesday, the lowest figure since February 27. Currently USD/CAD is trading at CAD 1.0018. GBP After a steep loss of 2.2% on Tuesday, FTSE 100 index recovered on Wednesday ...

Fundamental Analysis EUR "Equity markets ended the first quarter well" - Simon Denham, managing director of Capital Spreads The Stoxx Europe 600 Index gained 0.12 per cent to 259.07. Germany's DAX Index retreated 0.13 per cent and France's CAC 40 Index gained 0.19 per cent. The U.K.'s FTSE 100 Index rose 0.35 per cent to 5,723.67. USD "You’re going to see a slowing in the pace of job growth" - Neil Dutta, an economist at Bank of America Corp. The number of Americans, who have found a job in in March, fell to 120 thousand from 240 thousand the previous month, the Bureau of Labor Statistics said on Friday. Unemployment slid to 8.2 per cent, the lowest in three years, from 8.3 per cent. GBP "If I were on the MPC, I'd be more worried about whether inflation is coming back (down) as ...

Fundamental Analysis EUR "Spain is facing an economic situation of extreme difficulty" - Mariano Rajoy, Prime Minister of Spain Demand for Spain’s debt tumbled on Wednesday and the nation only sold 2.59 billion euros of bonds, just above the minimum amount it planned. The average yield on five-year bonds rose to 4.319 percent from 3.376 percent the previous month. USD "Demand for Spain’s debt tumbled on Wednesday and the nation only sold 2.59 billion euros of bonds, just above the minimum amount it planned. The average yield on five-year bonds rose to 4.319 percent from 3.376 percent the previous month" - Ryan Sweet, a senior economist at Moody’s Analytics Inc. The number of Americans claiming for unemployment benefits declined slightly to 357 thousand in the week ended March 31 from ...

Fundamental Analysis EUR "The results are a far cry from the blowout auctions we saw between December and February, which will no doubt be interpreted as the LTRO bid having dried up" - Peter Chatwell, Interest Rate Strategist at Credit Agricole in LondonSpain’s cost of borrowing surged after the first auction since the country presented its austerity budget. Yields on 10-year sovereign bonds soared by 11 basis points to 5.52%. USD "I would have to see some pretty severe circumstances before I endorse for another round of quantitative easing" - Dennis Lockhart, Atlanta Fed President Federal Reserve policymakers believe that improving US economy reduces the need for further monetary accommodation, with reference to minutes of the central bank’s March meeting. GBP "The last five years ...

Fundamental Analysis EUR "It is very hard to see how Spain can have a sustainable recovery" - Frances Hudson, global strategist at Standard Life Investments European stocks closed lower on Tuesday hit by concerns over Spain’s ability to tackle its deficit. USD "As the economy continues to strengthen, more of the pent-up demand will be released" - Don Johnson, U.S. sales chief for General Motors Co. U.S. factory orders rose for the third month in February, boosted by desire for business equipment. Bookings increased 1.3 per cent, Commerce department data showed on Tuesday. GBP "The UK economy is still facing huge challenges" - John Longworth, director general at the British Chambers of Commerce U.K. construction activity jumped to a 21-month high in March, reinforcing hopes that the ...

(Reuters) - Gold rose on Friday, led by a rebound in the euro, but was still set for a fourth consecutive weekly loss, due to patchy consumer demand and evidence of the waning investor appetite for the metal as confidence in the economic outlook strengthens. Global equities came under pressure on Friday, having touched eight-month peaks earlier in the week, as concerns resurfaced over the health of the Chinese and euro zone economies and a renewed focus on the debt burdens of Spain and Italy tempered some investors' enthusiasm. This month, the gold price has lost nearly 3 percent in value, as a shift in the perception among investors of the health of the U.S. economy in particular has made so-called safe-haven assets such as gold or U.S. Treasuries less attractive compared ...