Moving To The Nations' Currency

(Reuters) - Brent oil rose above $125 a barrel to end near a 10-month high on Friday as the United Nations' nuclear watchdog said Iran has sharply stepped up work on uranium enrichment, while the S&P 500 closed at the highest level since June 2008. The sharp run higher in oil prices has increased worries that slower consumer demand will stymie global economic growth, particularly as the euro zone remains mired in a debt crisis and appears headed for recession. A day after hitting a record high in euro terms, Brent crude jumped $1.85 to settle at $125.47, its fifth day of gains. The news on Iran, in a report from the United Nation's International Atomic Energy Agency, was seen as certain to intensify concerns about Iran's atomic aims. For the week, Brent crude is up 4.9 percent, its ...

The Bank of Japan released its meeting minutes, where the board members stressed on monitoring the negative impacts of the European debt crisis along with continue easing the imposed monetary policies. On the other hand, the Japanese finance minster “Izumi” stressed on the significance of the cooperation with China, also he said that the Japanese government approved the project of raising taxes on sales. Also, these additional eases will be added to the ones that were imposed before after the nation's exports dropped and the economy shrank by more than economists' forecast in the fourth quarter. As, the BoJ's Governor Masaaki Shirakawa’s and his policy board unexpectedly expanded their asset-purchase program from 55 trillion yen to 65 trillion yen, yet the BoJ maintained the overnight ...

Australian employers added additional employees in January, more than economists' forecasts, while unemployment rate unexpectedly retreated, as the nation’s resources helped in boosting the economy despites Europe's sovereign debt crisis. In addition, the Statistics Bureau said that the employees payrolls advanced by 46,300 last month, compared with the revised drop of 35,600 in December, beating expectations of 10.0 thousand new jobs. On the other hand, the bureau of statistics also issued January's statistics for the unemployment rate, where it retreated to 5.1% compared with the prior month's reading of 5.2%, yet it missed expectations of 5.3%. The number of full-time jobs increased 12,300 in January, while part-time employment jumped 34,000, also Australia’s participation rate, a ...

The Australian consumer confidence advanced to its highest level in three months, where the two interest-rate reductions in last November and December late last year improved the financial outlook for households. As, the sentiment index for February advanced 4.2% to 101.1, the highest level since November, compared with the prior month's reading of 2.4%. Also, the Westpac chief economist said about the sentiment-index advance that this is considered a strong effect from consumers and indicates that the two rate cuts, which the Reserve Bank and the commercial banks delivered to mortgage and business borrowers, are getting the consumers recognition. It worth mentioning, that the Reserve Bank of Australia Governor Glenn Stevens reduced the overnight cash rate target to 4.5% from 4.75% on ...

Today was the rate decision by the Reserve Bank of Australia, where unexpectedly it kept its benchmark interest rate steady at 4.25%, as it said that the inflation rates will remain within the targeted levels during the next two years. As, analysts predicted a 54% chance that the RBA governor will cut the interest rate again today as Australia’s job market weakens, yet it wasn’t expected that the RBA's Governor Glenn Stevens will avoid another cut after lowering it to 4.5% from 4.75% on November 1, which is the first cut since April 2009, and again by a quarter percentage point on December 6 to reach 4.25%. Stevens's first rate decision of the year reflects confidence of both the U.S. and Chinese economies will withstand a European recession and domestic unemployment will stay close to 5 ...

The Australian retail sales surprisingly dropped in December, which is the first drop in six months, as consumers spent less at grocers and on dining out in an economy where employment growth stalled last year. The Australian bureau of statistics released the seasonally adjusted reading for the retail sales index, where it fell 0.1%, compared with the prior month’s reading of 0.0%, which was revised to 0.1%; also it missed expectations of 0.2%. On the other hand, the forth-quarter figures for the retail sales index excluding inflation, which has a moderate scale for the Australian economic growth, plunged to 0.4% compared with the prior reading of 0.6%, which was revised to 0.5%; below expectations of 0.6%. Spending at cafes and restaurants fell 1.8%, and consumers spent 0.7% less at ...

Australia’s trade-balance surplus unexpectedly widened in December, as the exporters strengthened by the gold and coal exports that exceeded the imports increase of fuel and lubricants, also the Australian dollar advanced against most of the major currencies and reached near a three-month high. The Australian exports exceeded the imports by A$1.71 billion ($1.84 billion), compared with the prior surplus of A$1.34 billion surplus in November, also it exceeded expectations of A$1.2 billion. Als, imports advanced 1% to A$26.1 billion on a 22% increase in fuel and lubricants, while imports of civil aircraft dropped 13%. Also, the exports advanced by 2% to reach A$27.8 billion, led by a 31% advance in non-monetary gold shipments and an 8% increase in coal, coke and briquettes. The ...

(Reuters) - The euro pared losses from a 10-year low against the yen and edged slightly higher against the U.S. dollar on Friday, nearing the end of a year of stumbles that could presage more of the same in 2012. The single currency fell to 99.963 yen on the EBS trading platform, breaking below an options barrier at 100.00 yen. The euro last traded at 100.15 yen, according to Reuters data. The euro is down about 7.8 percent against the yen for the year. Thin trading exacerbated volatility, with many traders out for the end-of-year holidays. But analysts said the euro was likely facing a bleak year as the euro zone sovereign debt crisis, which has roiled markets for two years, rages on. "The currency markets are going to continue to take their cue from fixed income and sovereign credit ...

EUR bears are out in full force. According to the most recent CFTC Commitment of Traders Report, speculators in the futures market have built their largest EUR short position since May 2010. The one sided positioning highlights the market's pessimism against the EUR but also brings the possibility of a short squeeze. The risk is for a bout of short covering to shake out weak EUR shorts before another move lower. Economic News USD - Housing Continues to Weigh on GDP The USD caught a bid following the death of North Korean dictator Kim Jong II and news of increased tensions on the Korean Peninsula. Today's building permits and housing starts are forecasted to be flat which underscores the slow recovery in the US housing market. Wednesday's existing home sales will also shed some light on ...