British Pound Has Pierced

Fundamental Analysis EUR "The U.S. labor-market report will further erode investor confidence" - Markus Allenspach, head of bond research at Julius Baer Group Ltd. European stocks extended weekly losses, after a report showed U.S. companies added fewer jobs than expected in April. The Stoxx Europe 600 Index erased 1.76 per cent to 253.00. Germany’s DAX Index tumbled 1.99 per cent and France’s CAC 40 Index contracted 1.90 per cent. The U.K.’s FTSE 100 Index lost 1.93 per cent to 5,655.06. USD "We’re still very much on the recovery path, but we’ve got a huge amount of ground to make up in the labor market" - Scott Brown, chief economist at Raymond James & Associates Inc. The number of Americans, who have found a job in the private sector in April, tumbled to 115,000 from 154,000 the ...

Fundamental Analysis EUR Anti-austerity protestors are likely to hold massive demonstrations in May Day. Demonstrations in Athens that involve private and public sector strikes have already disrupted the public transport. However, the traditional violence is not expected as Greeks are likely to show their protest against austerity measures on Sunday when the general elections are due. USD Crude and Brent oil dropped as lifted US energy inventories outweighed supply concerns caused by export disruptions in Yemen, Sudan and North Sea. GBP Manufacturing sector in the UK performed worse than initially expected in April, reported research group Markit. UK's manufacturing PMI declined to 50.5 last month on a seasonally adjusted basis as compared to a March reading of 52.1. Experts ...

Fundamental Analysis EUR Unemployment in Spain approached a new record of 5.64 million in March while the jobless rate topped 24.4%, reported the national statistics office. Analysts expect the Spain's officials to confirm that the country is falling into recession. Meanwhile, retail sales in the country declined by 3.7% in March on an annual basis. USD US consumer spending surged in March, adding to the previous gains as incomes increased. Household purchases that account about 70% of the US economy surged by 0.3%, following a 0.9% increase in February. Experts projected consumer spending to rise by 0.4%. Meanwhile, incomes eased up 0.4%, indicating the largest increase in the last three months. GBP UK home value accelerated in April, the second straight month, Hometrack Ltd said on ...

Fundamental Analysis EUR "Once we hit the 6.5 per cent mark , the alarm bells will go off loudly in Brussels and more rhetoric will be coming from the European Central Bank" - Adrian Miller, a global markets strategist at GMP The rating agency Standard & Poor’s has downgraded Spain’s credit rating by two notches to BBB-plus with a negative outlook from A, citing expectations the government finances will deteriorate. USD "While the economy continued to grow in the first quarter, the expansion remains modest in pace and subpar from a historical perspective" - Jim Baird, chief investment strategist at Plante Moran Financial Advisors The U.S. economy grew at a slower pace than forecast in the first quarter as businesses cut on investment. Gross domestic product increased at a 2.2 per cent ...

Dukascopy Fundamental Analysis EUR BMW AG, German car maker will recall 120,246 cars in China due to the difficulties with the automobile's batteries, nation's quality control agency reported on Tuesday. The recollection of the Coupe, BMW 6 Series Convertible, BMW 6 Series and BMW 5 Series, vehicles produced between year 2003 and 2010 will begin in May 10. An installation problem of the batteries can create safety risks, quality control agency claimed. USD US businesses project slower pace of revenue growth in China in 2012 amid rising operation costs and worries over global stagnation, according to survey of American Chamber of Commerce. About 43% of the firms surveyed expect increase in sales to approach 11% this year as compared to a 15% increase in 2011. The major contributors to ...

Dukascopy Technical Analysis EUR/USD "If buying of Treasurys gains steam and bond yields fall in the wake of Monday's Bernanke's comments, the dollar could face more pressure against currencies such as the euro" - Societe Generale (based on CNBC) Even though the pair is trading slightly above the 1.3291/1.3325 area, it is expected to move southwards in the nearest future as the EU debt risks have not been swept away completely. EUR/JPY "The Fed’s stance to support the economic recovery through policy easing and adding liquidity to the market is helping boost sentiment" - Shinkin Asset Management Co. (based on Bloomberg) EUR/JPY rallied above the 110 level and eased the risks of bearish reversal. GBP/USD "This is more of a dollar move than a sterling move. It feels like the market was ...

Fundamental Analysis EUR "It helps prevent a repetition of the sovereign debt crisis" - Herman Van Rompuy, President of the European Council All but two of the European Union leaders Friday signed a treaty to adopt strict new rules on national deficits and debts. Only Britain and the Czech Republic did not sign the agreement. USD "There’s a lot of room to go in the stock market" - John Carey, a Boston-based money manager at Pioneer Investments The Standard & Poor's 500 lost 0.32%, or 4.46 points, to 1,369.63. The Dow Jones Industrial Average slid 0.02%, by 2.73 points, to 12,977.57. The Nasdaq Composite Index dipped by 0.43%, or 12.78 points, to 2,976.19. GBP "The improved performance of the construction sector adds to other positive data released on the UK economy" - Sarah Bingham, ...

Fundamental Analysis EUR The approval of Greece's rescue package has provided European officials with time to persuade investors they are able to implement both fiscal discipline and growth. Italian and Spain borrowing costs fell on the Greek agreement. Yields for 10-year Spanish notes declined to 5.08% compared to 6.7% in November while Italian 10-year borrowing costs diminished below 5.4% compared to 7.1% in December. USD Sales of previously owned U.S. houses rose in January to the highest level since May 2010, adding to signs the housing market is regaining its footing. Purchases climbed 4.3 percent to a 4.57 million annual rate, less than forecast, from a revised 4.38 million pace in December that was slower than previously estimated, a report from National Association of Realtors ...

Fundamental Analysis EUR 17-nation currency appreciated against the Greenback and the Japanese Yen after European Finance Ministers approved the second rescue package for indebted Greece. Euro added 0.1% against its US peer to USD 1.3254 and strengthened 0.2% against Yen to JPY 105.62. USD Home improvement retailer Home Depot reported its profit jumped 32% in fourth quarter, mainly due to higher net sales which climbed 5.9%. Sales at identical stores added 5.7% reported Home Depot on Tuesday. In total company earned USD 774 million or USD 0.5 per share. The profit outperformed analyst estimations of profit USD 0.42 a share. GBP UK's public sector net borrowing fell much more than initially projected in January, reported the UK National Statistics Office. The indicator swung to surplus ...