Emerging Markets Shape

Fundamental Analysis EUR "The likelihood of inflation falling below 2 percent in the short run remains low, putting the ECB in a difficult situation." - Peter Vanden Houte, an economist at ING Inflation in the euro zone rose by more than expected in April, mounting pressure on the European Central Bank to take action against price pressures. USD "Manufacturing is still in pretty good shape." - Scott Brown, chief economist at Raymond James & Associates Inc. Manufacturing in the U.S. expanded in April at the fastest pace in 10 months, showed Institute for Supply Management data on Tuesday. GBP "The good news is that manufacturing clocked up a fifth straight rise, whilst cost pressures have eased a little and some firms are still recruiting." - Lee Hopley, chief economist at EEF U.K. ...

(Reuters) - Gold edged up on Thursday on gains in equities and expectations the U.S. Federal Reserve could do more if necessary to lift the economy, recouping earlier losses triggered by a lack of surprises from the central bank's meeting on interest rates. The Fed has already engaged in two rounds of asset purchases totaling $2.3 trillion, known as quantitative easing, to drive down interest rates and stimulate the economy. The latest QE helped push up commodity prices by providing cheap money to investors who placed it in riskier assets. Fed Chairman Ben Bernanke said U.S. monetary policy was "more or less in the right place" even though the central bank would not hesitate to launch another round of bond purchases if the economy were to weaken. Gold added $3.54 an ounce to $1,647.52 ...

Dukascopy Technical Analysis EUR/USD "Whereas in the past the dollar would tend to fall as risk appetite was rising, the dollar is now benefiting from pro-risk developments, as U.S. economic data has generally bested expectations recently" - Bank of the West (based on CNBC) Even though EUR/USD continues to hover just below 1.3291/1.3325, it is expected to move southwards in the nearest future. The initial support is at 1.3140, followed by 1.3130 (55 day sma) and 1.3004. EUR/JPY "It's possible to see euro pick up slightly as people work out the implications of the bailout package and better economic statistics Sentiment toward Europe is slowly improving" - St. George Bank Ltd. (based on Bloomberg) EUR/JPY is currently in a phase of a bearish correction, which may last until 105.65 is ...

“America is back,” said the President of all the Americans, “Anyone who tells you America is in decline or that our influence has waned, doesn’t know what they’re talking about.” Well, Dear Reader, we’re here to tell you: America is in decline. We can give it to you straight because we’re not running for public office. And if we were elected, we would immediately demand a recount. Anyone who tells you America is not in decline is either running for office…or not paying attention. In 1969, more than one out of every three dollars of income in the entire globe was earned in the US. That’s what the IMF’s World Economic Outlook tells us. By 2000, that number had fallen…but not by much. The US still took home 31% of global income. But in the last 10 years, the US share has fallen hard — ...

Blinking in the light and still very nervous, investors have taken tentative steps back into the world's equity markets in 2012, but it won't take much to scare them and they will be looking for encouragement from policy makers in the coming week. Euro zone finance ministers meet on Monday amid demands for faster action on fiscal integration, while the U.S. Federal Reserve's key policy making committee, the FOMC, holds its first meeting since promising to give a forecast on interest rates. But neither event should upset what has been a very good start for riskier assets like equities and commodities in 2012 as investors start to leave safe-havens like the U.S. dollar and German government bonds and put their money to work. Patrick Zweifel of Pictet Asset Management summed up the current ...

The Weekly Bottom Line : 10/12/2011 HIGHLIGHTS OF THE WEEK United States Attention this week was once again on Europe where a plan to strengthen fiscal union is being negotiated by policymakers in Brussels. The hope is that with greater attention to coordinated fiscal policy and future fiscal discipline that financial markets will regain confidence in the euro project and reduce pressure on distressed sovereign bond markets. However, the time to implementation is likely longer than financial markets are patient. Without more serious intervention by the European Central Bank to lower the bond yields of solvent but illiquid countries, the financial crisis in Europe will continue. For the United States the consequence is ongoing financial uncertainty and slower global growth. ...

(Reuters) - Britain orchestrated this week's bold move by central banks to stave off a cash crunch in global markets, helping drive a plan that began to take shape around 10 days ago. For months, central bankers have tracked with growing concern how the deleveraging among European banks, hurt by the tumbling value of euro-zone debt, was hurting global funding as banks sold off assets and brought cash back home. Indeed, some central banks had urged the Federal Reserve for some months to put in place cheaper dollar funding, but the Fed had resisted, said a source with direct knowledge of this week's deal. Last week, conditions grew particularly acute after a German bond auction failed to attract enough buyers. The Federal Reserve and the European Central Bank started serious discussions ...

Fundamental Analysis EUR On Monday trade German DAX 30 index advanced rapidly on growing investors' confidence that German and French politicians have agreed on a new stability treaty to restrain crisis. DAX index surged 3.6% reaching 5,690.93. Major winners in the index were Commerzbank and Deutsche Bank AG, each added about 7%. Auto producers Daimler AG and BMW gained 7.5% and 4.92% respectively. USD Crude oil futures hit the six-week high being traded over USD 99 a barrel. Analysts claim that the increase in oil demand was caused by more positive outlook on the Eurozone economy. On the New York Mercantile Exchange crude oil futures for January delivery were traded at USD 99.72 at early European trade, surging by 3.05%. GBP UK has developed a multi-billion Pound programme in order ...

(Reuters) - The world economy is on a slippery slope. The euro zone appears to have tipped into a mild recession and the rest of the global economy is struggling to hold onto firm ground. China is slowing, Japan's exports are tumbling. Eastern European countries are wobbling as credit dries up from a pullback in lending by euro-zone banks. In the United States, the improving economic picture has clouded somewhat after a mixed batch of economic data and downward revision to third-quarter growth to 2.0 percent doused some of the optimism for a strong fourth quarter. Consumer spending slowed in October and business investment weakened, showing a recovery that remains weak and vulnerable to shocks. Against this uncertain backdrop, financial markets are volatile as European leaders fail to ...