States Getting Better

Earlier, the euro headed lower as concerns about Greece overcame the markets and worried Forex traders and investors. Good news out of the United States, though, is changing the picture a little bit and providing a measure of confidence that is helping the euro to tenuous gains this morning. Earlier, the euro dropped on the disappointing news out of Greece. Greek President Karolos Papoulias has said that new Parliamentary elections will be called, since a coalition government has not been formed. However, the new elections might not take place until the middle of June. Many think that the new elections will be a referendum on whether or not Greece should remain in the eurozone. On top of that, the delay in the elections means that Greece may not receive the international aid from the ...

Fundamental Analysis EUR "The overall manufacturing trend remains weak." - Pierre-Olivier Beffy, chief economist at Exane BNP Paribas French industrial production fell in March, said the national statistics office Insee on Thursday. Output contracted 0.9 per cent from February, when it gained 0.2 per cent. USD "It’s hard to get nervous that imports are rising." - Dean Maki, chief U.S. economist at Barclays Capital Inc. The number of Americans claiming for unemployment benefits fell to 367,000 in the week ended May 5 from 368,000 the week before, said the Department of Labor on Thursday. GBP "Our forecast is that they are done with QE, but you can’t rule out more later this year." - Ross Walker, an economist at Royal Bank of Scotland Group Plc The Bank of England kept rates on hold ...

Oil prices were mixed in choppy trading on Thursday as investors weighed weaker-than-expected Chinese trade data and higher OPEC production against a better picture of the U.S. jobs market, muddling the oil demand outlook. China, the world's second largest oil consumer after the United States, saw its exports and imports in April grow at a far slower rate than forecast, government data showed. Its trade performance that month was also surprisingly weak, and analysts said the government would need to loosen monetary policy to spur expansion or risk missing annual growth targets. The Organization of the Petroleum Exporting Countries said it pumped 1.62 million barrels more per day, to 31.62 million barrels per day last month as Iraq ramped up output and Libya's oil industry recovered. ...

Sunrise Market Commentary - Fixed Income: Core bonds higher at first, but gave back gains in US session - Fears about Greece and Spain continued to boost core bonds, but a rumours, later confirmed, that the EFSF would today disburse a tranche of the Greek bail-out loan triggered some correction and erased part of the German bond gains and almost all of the US ones. Today, the BoE decision on QE may affect overall bond markets. - Currencies: euro extends its trip South as speculation on Greek exit is growing - On Wednesday, trading on global markets was still dominated by negative headlines on Europe. This weighed on the euro. After all, the decline of EUR/USD developed in an orderly way even as several EMU policymakers pondered the option of a Greek exit. Today, the BoE holds ...

(Reuters) - President Barack Obama will renew his calls for the U.S. Congress to act on mortgage relief, small business tax credits, and veterans' assistance to try to refocus the spotlight on lawmakers in an effort to boost the economy. Obama, who is traveling to Albany, New York, on Tuesday, to visit a nanotechnology research center will lay out a "to do" list for Congress, an administration official said. The Democratic president, who is running for re-election in November, is eager to show he is taking steps to accelerate economic growth. His expected Republican opponent, former Massachusetts governor Mitt Romney, has painted his background as a business executive as better suited for helping the United States recover from sluggish job growth and high unemployment. The list is a ...

U.S. Review Look Past the Monthly Volatility and See the Trend This week of economic releases painted a somewhat mixed picture, but the underlying trend still reflects an economy that is growing at a modest pace. The milder-than-usual winter likely brought some activity forward and below-consensus readings are due in part to payback. Housing starts, existing home sales and industrial production all posted disappointing readings in March that are likely not indicative of the underlying trend. Headline retail sales, however, came in more than double the consensus estimate in March, ending the first quarter on a positive note. Early Spring Brings Payback Period The full week of economic releases painted a somewhat mixed picture, but the underlying trend still reflects an economy ...

Risk appetite is making a comeback in the markets today, and that is sending the US dollar mostly lower. The dollar index is losing ground, and the greenback is lower against many of the majors, especially the European currencies. With better earnings news out of the United States, and with better news in the eurozone, Forex traders are ready for a little risk. US dollar is pulling back as Forex traders look for better returns, mostly with European currencies and the Down Under currencies. Greenback is down against the euro and the pound right now as the better news results in a return to risk appetite. In the United States, earnings news is driving the markets. Solid earnings data and forecasts for the rest of 2012 have stocks gaining and risk appetite on the rise. This, in term, means a ...

Once again, the US dollar index is heading higher, gaining as concerns about what’s happening in the eurozone take precedence over much else. Greenback is also getting help from the fact that the US economy seems ready to recover better than the eurozone economy right now. US dollar is higher against European currencies today, gaining against the euro and the pound. The economic situation in the United States is showing some improvement, with March retail sales gaining by 0.8% since February — and up more than 6% since March 2011. The news is helping the US dollar as concerns about the eurozone economy (which some think might be in recession or heading that way) continue to hold the 17-nation currency down. Concerns about Spain continue to weigh on the eurozone, and there are still ...

Japan's $1.3 trillion Government Pension Investment Fund, the world's biggest public pension, said yields on Japanese government bonds are unlikely to surge for a while as there is plenty of demand from cash rich domestic banks. Takahiro Mitani, chairman of the GPIF, said the environment for JGBs will remain favorable for some time as the country stays in a deflationary phase and it may take a lot of time for the economy to grow more than 1 percent sustainably. "I don't think (JGB yields) will fall sharply from the current level. They are near their lows, but the yields are not expected to surge from here," Mitani told Reuters in an interview on Friday. However, there is a risk for JGBs if the government fails to implement its plans to raise the consumption tax, he said. The GPIF ...