Week in Rewind (Dec 25-29)
The last week was the Christmas week and the datas and as well trading were pretty boring. Liquidtiy was dried up ahead of the Christmas party and as well New Year and no significant movement on the release the datas.
There were a significant number of US data releases during the week and the majority were stronger than expected. New home sales increased to an annual rate of 1.05mn in November from 1.01mn the previous month while existing home sales also strengthened to 6.28mn from 6.18mn as inventory levels dipped slightly. Consumer confidence rose to 109.0 in December from an upwardly-revised 105.3 the previous month and the Chicago PMI index also strengthened to 52.4 from 49.9 in November. The firm data pushed US 10-year bond yields back above the 4.70% level while expectations of a first-quarter interest rate cut were scaled back.
The Euro continued to gain support from a tough ECB stance on interest rates while the increase in Euro-zone money supply growth to a year-on-year rate of 9.3% for November maintained expectations of a first-quarter interest rate increase.
The Japanese economic data failed to provide significant support for the yen with the core annual consumer price increase held to 0.2% in November while the retail sales figures remained subdued. Unemployment fell to 4.0% in November from 4.1% while industrial output rose 0.7% for November. The Bank of Japan pointedly stated that an interest rate increase would be discussed at the January 17/18 policy meeting and this spared the yen from further aggressive selling pressure .
There was little in the way of UK economic data, although the latest house-price surveys remained strong with the Nationwide Bank reporting a further 1.2% monthly increase for December, which maintained the annual growth rate above 10%.
The Swiss franc remained under pressure against the Euro with lows around 1.61. The Swiss KOF index weakened to 1.60 in December from 1.75 the previous month which failed to offer any support to the Swiss currency which settled close to 1.22 against the dollar.
There were a significant number of US data releases during the week and the majority were stronger than expected. New home sales increased to an annual rate of 1.05mn in November from 1.01mn the previous month while existing home sales also strengthened to 6.28mn from 6.18mn as inventory levels dipped slightly. Consumer confidence rose to 109.0 in December from an upwardly-revised 105.3 the previous month and the Chicago PMI index also strengthened to 52.4 from 49.9 in November. The firm data pushed US 10-year bond yields back above the 4.70% level while expectations of a first-quarter interest rate cut were scaled back.
The Euro continued to gain support from a tough ECB stance on interest rates while the increase in Euro-zone money supply growth to a year-on-year rate of 9.3% for November maintained expectations of a first-quarter interest rate increase.
The Japanese economic data failed to provide significant support for the yen with the core annual consumer price increase held to 0.2% in November while the retail sales figures remained subdued. Unemployment fell to 4.0% in November from 4.1% while industrial output rose 0.7% for November. The Bank of Japan pointedly stated that an interest rate increase would be discussed at the January 17/18 policy meeting and this spared the yen from further aggressive selling pressure .
There was little in the way of UK economic data, although the latest house-price surveys remained strong with the Nationwide Bank reporting a further 1.2% monthly increase for December, which maintained the annual growth rate above 10%.
The Swiss franc remained under pressure against the Euro with lows around 1.61. The Swiss KOF index weakened to 1.60 in December from 1.75 the previous month which failed to offer any support to the Swiss currency which settled close to 1.22 against the dollar.
posted by Naveen Pantera at 6:43 PM
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