The euro weakened against most of its major peers as French gross domestic product grew at a slower pace than previously estimated, adding to concern the European economy is stalling. France’s GDP rose 0.3 percent from the second quarter, when it fell 0.1 percent, French statistics institute Insee in Paris said today. It had previously reported a gain o 0.4 percent. In the year, the economy expanded 1.5 percent, down from 1.7 percent in the previous quarter.
The 17-nation common currency fluctuated against the dollar as U.S. durable goods orders rose more than forecast, adding to evidence of economic growth in America and a sign of decoupling between the U.S and the euro area. Orders for U.S. durable goods jumped in November by the most in four months, data showed today, helping to offset weaker-than-forecast consumer spending. Sales of new U.S. homes rose in November to a seven-month high, adding to evidence of stabilization in the housing market. Purchases of single-family properties increased 1.6 percent to a 315,000 annual pace, figures from the Commerce Department showed today in Washington. Congress passed a two-month payroll tax cut extension eight days before its scheduled expiration after House Republicans dropped their objections under growing political pressure. European Central Bank Executive Board member Lorenzo Bini Smaghi said policy makers shouldn’t shirk from using quantitative easing if it’s needed to avoid deflation.
Canada’s currency reached to its strongest level in more than a week versus the greenback after reports showed the economic recovery gaining momentum in the U.S., the nation’s largest trading partner. The loonie, as the currency is known for the image of the waterfowl on the dollar coin, rose 0.1 percent to C$1.0188, after earlier reaching C$1.0181, the strongest level since Dec. 12.
IntercontinentalExchange Inc.’s Dollar Index, a gauge of the greenback against the currencies of six major U.S. trading partners, was little changed at 79.948.
Economy showing 'positive signs;' improvement not fast enough
European stocks rose, capping the first weekly rally since Dec. 2, as U.S. durable-goods orders and new home sales increased, reinforcing optimism that the recovery in the world’s largest economy is gathering strength.
Orders for U.S. durable goods rose in November by the most in four months as an increase in demand for aircraft outweighed declines in spending on computers and equipment.
Bookings for equipment meant to last at least three years rose 3.8 percent after no change in the prior month that was previously reported as a decline, data from the Commerce Department showed today in Washington.
A separate report showed sales of new U.S. homes rose to a seven-month high in November. Purchases of single-family properties increased 1.6 percent to a 315,000 annual pace, pushing the number of new homes on the market to a record low.
National benchmark indexes climbed in all 18 western- European (SXXP) stock markets. The U.K.’s FTSE 100 Index rose 1 percent, Germany’s DAX gained 0.5 percent and France’s CAC 40 gained 1 percent.
Wavin soared 22 percent to 9.58 euros as it granted access to Mexichem to carry out due diligence, after the Latin American chemical producer increased its bid for Wavin to 10 euros from 9 euros.
BP rose 2.1 percent to 459.70 pence, while Total SA added 2.1 percent to 38.64 euros. Crude oil climbed for a fifth day in New York, the longest stretch of gains since Nov. 8.
EDP-Energias de Portugal dropped 0.3 percent to 2.32 euros, erasing an earlier gain of 3.7 percent, after Fitch Ratings reaffirmed the company’s long-term credit rating at BBB+. EDP had advanced after Portugal said China Three Gorges Corp. will pick up a stake in the company.
U.S. stocks rose, extending the weekly rally for the Standard & Poor’s 500 Index, as expansion in U.S. industrial purchases and stronger new-home sales offset weaker-than-forecast consumer spending.
Orders for U.S. durable goods rose in November by 3.8 percent, the most (SPXL1) in four months, and more than the 2.2 percent economists had predicted, data from the Commerce Department showed today in Washington. Consumer spending and incomes rose less than forecast in November, while sales of new U.S. homes rose 1.6 percent to a 315,000 annual pace in November, a seven- month high, and matching the forecast, data show.
Congress passed a two-month payroll tax cut extension today, eight days before its scheduled expiration, after House Republicans dropped their objections under growing political pressure. House Speaker John Boehner agreed late yesterday to extend the tax cut, capping a month of wrangling that led to a revolt by House Republicans over the bipartisan deal passed by the Senate on Dec. 17 in an 89-10 vote. The plan approved today will go to President Barack Obama for his signature.
All 10 industries advanced at least 0.1 percent today, led by telephone-company shares. U.S. stock markets will be closed Dec. 26 for the Christmas holiday.
Rambus jumped 15 percent to $8.45. The agreement with Irvine, California-based Broadcom ends all litigation, including claims related to Broadcom’s alleged past use of patented Rambus technology. The license runs for five years, with undisclosed financial terms, Rambus said in a statement.
Verizon climbed 1.2 percent to $39.76. Disney increased 1.1 percent to $37.37, while Bank of America rallied 1.1 percent to $5.53.
Activity in the gold market on the eve of Christmas holidays came to an end. The volume of orders for durable goods in the U.S. rose in November compared with October at 3.8%, or$ 7.5 billion - up to 207 billion dollars. Thus, the November data were significantly better than forecasts of analysts, who expected growth rate of only 2%.
However, the negative impact on investor sentiment has statistics on expenditures and incomes of Americans in November, which showed growth of only 0.1%. Analysts had forecast growth of spending 0.3% of income - by 0.4%.
The growth potential of the "yellow metal" is now limited and trade corridor remains in effect for under $ 1605 - $ 1615 per troy ounce in February gold futures at the Comex trading in New York.
Oil headed for its biggest weekly gain in almost two months in New York after U.S. economic reports indicated that growth in the world’s biggest crude consumer will accelerate.
Futures rose as much as 0.6 percent, extending yesterday’s gain of 0.9 percent after U.S. initial jobless claims dropped to the lowest level since April 2008. Leading indicators climbed more than forecast in November, and consumer sentiment improved this month. Oil supplies fell the most in a decade last week, the Energy Department said Dec. 21.
U.S. initial unemployment claims fell by 4,000 to 364,000 last week, Labor Department figures showed yesterday. The Conference Board’s gauge of the outlook for the next three to six months rose 0.5 percent, versus a median forecast of 0.3 percent in a Bloomberg survey. The Thomson Reuters/University of Michigan final index of consumer sentiment increased more than expected in December.
Crude may rise next week on speculation that sanctions against Iran will curb supply from the world’s third-largest oil exporter, a separate Bloomberg survey showed.
The European Union and the U.S. are seeking support from the Middle East and Asia for sanctions to increase pressure on Iran to abandon a suspected nuclear weapons program. Iran’s navy will hold 10 days of maneuvers east of the Strait of Hormuz, state-run Fars news agency reported yesterday, citing Navy Commander Habibollah Sayari.
Crude for February delivery was at $99.78 a barrel, up 25 cents, in electronic trading on the New York Mercantile Exchange at 3:15 p.m. Singapore time. The contract yesterday rose 86 cents to $99.53, the highest settlement since Dec. 13. Prices are up 6.7 percent this week, the biggest gain since the period ended Oct. 28. Futures have climbed 9.3 percent this year after increasing 15 percent in 2010.
Brent oil for February was trading at $108.09 a barrel, up 20 cents, on the London-based ICE Futures Europe exchange. The European contract’s premium to Nymex crude was $8.19 a barrel, compared with a close yesterday of $8.36 that was the smallest differential since March 8. The spread surged to a record $27.88 on Oct. 14.
EUR/USD $1.2950, $1.2975, $1.3000, $1.3030, $1.3100, $1.3200, $1.2825
USD/JPY Y77.30, Y77.95, Y78.00, Y78.65USD/CHF Chf0.9350
USD/CAD C$1.0190, C$1.0200, C$1.0400
Data:
06:30 France GDP (Q3) revised 0.3%
06:30 France GDP (Q3) revised Y/Y 1.5%
Flows were very light as markets moving down the gears ahead of the elongated Christmas weekend prompting a sharp cut back in liquidity.
Departing European Central Bank Executive Board member Lorenzo Bini Smaghi hinted Thursday that the ECB could take more aggressive action to intervene in Eurozone government bond markets. In his last interview before retiring from the ECB's Executive Board, Bini Smaghi argued that while the "concept of lender of last resort to governments is misplaced" the ECB could intervene more heavily on bond markets for monetary policy reasons. "The mandate of the ECB is to implement the single monetary policy of the euro area, with the objective of price stability," Bini Smaghi told the Financial Times.
EUR/USD: during european session the pair limits in $1,3060-$ 1.3100 area.

GBP/USD: during european session the pair limits in $1,5660-$ 1.5710 area.

USD/JPY: the pair has trading slightly above Y78,00.

US data starts at 1300GMT with the latest Building Permits Revision,
while data at 1330GMT includes durable goods orders and also Personal Income data. Then, at 1500GMT, US New home sales are forecast to rise to a 313,000 annual rate from the 307,000 rate in October. Late US data sees the 2115GMT release of Commercial & Industrial Loans.
GBP/USD
Offers $1.5795/800, $1.5775/80, $1.5745/50, $1.5730
Bids $1.5620, $1.5600, $1.5550
EUR/USD
Offers $1.3225/50, $1.3210/15, $1.3200, $1.3150/60, $1.3130
Bids $1.3000/990, $1.2980
Resistance 3: Y79.00 (Nov 1 high)
Resistance 2: Y78.30/45 (area of Nov 1-4 highs)
Resistance 1: Y78.20 (session high)
Current price: Y78.04
Support 1:Y77.95 (МА (200) for Н1)
Support 2:Y77.60 (Dec 13 and 16 lows)
Support 3:Y77.50 (Dec 9 low)

Resistance 3: Chf0.9545 (Dec 15 high)
Resistance 2: Chf0.9430 (61,8 % FIBO Chf0,9545-Chf0,9242)
Resistance 1: Chf0.9390/00 (area of Dec 19 and 21 highs and 50,0 % FIBO Chf0,9545-Chf0,9242)
Current price: Chf0.9360
Support 1: Chf0.9330 (session low)
Support 2: Chf0.9300 (Dec 22 low)
Support 3: Chf0.9240 (Dec 21 low)

Resistance 3 : $1.5890 (Nov 18 high)
Resistance 2 : $1.5770/80 (area of Nov 30, Dec 8 and 21 highs)
Resistance 1 : $1.5730 (Dec 22 high)
Current price: $1.5669
Support 1 : $1.5650 (area of Dec 21-22 lows)
Support 2 : $1.5620 (low of american session on Dec 20)
Support 3 : $1.5570/60 (Dec 16 high, МА (200) for Н1)

Resistance 3: $ 1.3240 (area of Dec 13 low and support line from Jan'2011)
Resistance 2: $ 1.3200 (area of Dec 21 high)
Resistance 1: $ 1.3100/10 (session high, resistance line from Oct 27)
Current price: $1.3067
Support 1 : $1.3020 (area of Dec 21-22 lows)
Support 2 : $1.2980 (Dec 19 low)
Support 3 : $1.2945 (Dec 14 low)

EUR/USD $1.2950, $1.2975, $1.3000, $1.3030, $1.3100, $1.3200, $1.2825
USD/JPY Y77.30, Y77.95, Y78.00, Y78.65USD/CHF Chf0.9350
USD/CAD C$1.0190, C$1.0200, C$1.0400
Dec 23 Greek T-bill redemption for E2.0bln
Dec 23 Portugal T-bill redemption for E2.277bln
Dec 27 Italy T-bill redemption for E2.5bln
Dec 30 Italy T-bill redemption for E8.8bln
Jan 1 Denmark takes over EU presidency
Jan 10 EU Rehn speaks on Eurobonds to European parliament group
Jan 13 Greek T-bill redemption for E2.0bln
Jan 16 Italy T-bill redemption for E7.7bln
Jan 20 Greek T-bill redemption for E2.0bln
Jan 20 Spain T-bill redemption for E8.611bln
Jan 20 Portugal T-bill redemption for E3.958bln
Jan 22 Finnish presidential elections
Jan 23/24 EU FinMin meeting in Brussels
The dollar was set to fall against most of its 16 major peers this week as Asian shares extended a global rally, damping demand for lower-yielding assets.
The Australian dollar rose, extending its gains this week, before U.S. reports that may show improvements in home sales and consumer spending, boosting demand for higher-yielding currencies.
The so-called Aussie strengthened to a two-week high against the yen as Asian stocks extended a rally in global equities.
The New Zealand currency, known as the kiwi, briefly pared a weekly advance after an earthquake struck near the city of Christchurch. Demand for the South Pacific nations’ currencies was limited as Italy prepares to sell bonds next week amid concern Europe’s debt crisis will weigh on global growth. Italy is scheduled to auction 9 billion euros ($11.8 billion) of bills and as much as 2.5 billion euros of bonds on Dec. 28, followed by sales of debt maturing in 2014, 2018, 2021 and 2022 the next day.
S&P said this month it may cut the credit grades of 15 euro nations, including Italy, France and Germany.
EUR/USD: on Asian session the pair gain.
GBP/USD: on Asian session the pair gain.
USD/JPY: on Asian session the pair fell.
European data for Friday starts at 0630GMT with the detail of France Q3 GDP data, which is followed by France PPI for November at
0745GMT. UK data at 0930GMT includes BBA Banking Data, Mortgage Approvals as well as the latest Index of Services data. At 0830GMT, the Swiss National Bank is due to publish it's Q4 Quarterly Bulletin. US data starts at 1300GMT with the latest Building Permits Revision,
while data at 1330GMT includes durable goods orders and also Personal Income data. Then, at 1500GMT, US New home sales are forecast to rise to a 313,000 annual rate from the 307,000 rate in October. Late US data sees the 2115GMT release of Commercial & Industrial Loans.
The euro fell against the U.S. dollar after the release of macroeconomic data on applications for unemployment insurance in the United States. The dollar has grown, despite the negative data on GDP for the third quarter, where the value was 1.8% versus 2.0%. Significant impact on the market have data on the labor market, where the value was 364 thousand vs. 376 thousand in government in Italy, Mario Monti won a confidence vote in the Senate on measures of austerity.
The British pound rose against the U.S. dollar after the published statistics showed that UK GDP has exceeded the preliminary estimate. GDP grew in the third quarter of 2011 by 0.6% over the previous three months. Bank of England, King said that the prospects for growth and market conditions have deteriorated, and he is concerned about the threat posed by the debt crisis. In this case, the dependence on central bank has increased.King believes that banks need to raise capital without reducing the volume of lending.
EUR/USD: yesterday the pair has grown, but then decreased.
GBP/USD: yesterday the pair has grown, however lost the positions later.
USD/JPY: yesterday the pair advanced.
European data for Friday starts at 0630GMT with the detail of France Q3 GDP data, which is followed by France PPI for November at
0745GMT. UK data at 0930GMT includes BBA Banking Data, Mortgage Approvals as well as the latest Index of Services data. At 0830GMT, the Swiss National Bank is due to publish it's Q4 Quarterly Bulletin. US data starts at 1300GMT with the latest Building Permits Revision,
while data at 1330GMT includes durable goods orders and also Personal Income data. Then, at 1500GMT, US New home sales are forecast to rise to a 313,000 annual rate from the 307,000 rate in October. Late US data sees the 2115GMT release of Commercial & Industrial Loans.
Resistance 3: Y79.00 (Nov 1 high)
Resistance 2: Y78.45 (high of the American session on Nov 1)
Resistance 1: Y78.30 (Nov 29 high)
The current price: Y78.08
Support 1:Y78.00 (Dec 22 low)
Support 2:Y77.70 (area of Dec 20-21 low)
Support 3:Y77.50 (Dec 9 low)
Comments: the pair advanced. In focus resistance Y78.30.
Resistance 3: Chf0.9545 (Dec 15 high)
Resistance 2: Chf0.9480 (Dec 13 high)
Resistance 1: Chf0.9400 (Dec 22 high)
The current price: Chf0.9348
Support 1: Chf0.9340 (session low)
Support 2: Chf0.9305 (Dec 22 low)
Support 3: Chf0.9270 (Dec 20 low)
Comments: the pair advanced. In focus resistance Chf0.9400.
Resistance 3: $1.3200 (Dec 21 high)
Resistance 2: $1.3130 (Dec 20 high)
Resistance 1: $1.3110 (MA (233) H1)
The current price: $1.3069
Support 1 : $1.3015 (Dec 22 low)
Support 2 : $1.2980 (Dec 19 low)
Support 3 : $1.2944 (Jan 14 low)
Comments: the pair is on uptrend. In focus resistance $1.3110.
Change % Change Last
Nikkei 225 8,395 -64.82 -0.77%
Hang Seng 18,378 -38.22 -0.21%
S&P/ASX 200 4,091 -48.69 -1.18%
Shanghai Composite 2,186 -4.85 -0.22%
FTSE 100 5,450 +60.55 +1.12%
CAC 40 3,068 +37.56 +1.24%
DAX 5,847 +55.47 +0.96%
Dow 12,169.65 +61.91 +0.51%
Nasdaq 2,599.45 +21.48 +0.83%
S&P 500 1,254.00 +10.28 +0.83%
10 Year Yield 1.95% -0.02 --
Oil $99.50 -0.03 -0.03%
Gold $1,606.20 -4.40 -0.27%
06:30 France GDP, q/q Quarter III +0.4% +0.4%
06:30 France GDP, Y/Y Quarter III +1.6% +1.6%
09:30 United Kingdom Mortgage Approvals October 35.3 36.3
10:00 Switzerland SNB Quarterly Bulletin IV quarter
13:30 Canada Gross Domestic Product (MoM) October +0.2% +0.1%
13:30 U.S. Durable Goods Orders November -0.7% +2.2%
13:30 U.S. Durable Goods Orders ex Transportation November +0.7% +0.5%
13:30 U.S. Durable goods orders ex defense November -1.8% +0.9%
13:30 U.S. Personal Income, m/m November +0.4% +0.3%
13:30 U.S. Personal spending November +0.1% +0.3%
13:30 U.S. PPI excluding food and energy, m/m November +0.1% +0.1%
13:30 U.S. PPI excluding food and energy, Y/Y November +1.7% +1.7%
15:00 U.S. New Home Sales November 307 314
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