Weekly Report for the foreign exchange markets - forex
Issued by the National Bank of KuwaitUnited States
A mixed performance in the foreign exchange markets
It should be noted that the financial markets stuck between two forces Mtnavdtin, the one hand, the risk of the spread of the crisis of Europe are expanding to affect more countries in the region, particularly to Italy, but in terms of the second deadline for having the debt ceiling U.S. will happen soon with the absence for any agreement in this regard until now. As a result, has lost the foreign exchange market direction during the last week to characterize the U.S. dollar performance differential against other foreign currencies, the euro has started the week so powerful was the highest at 1.4536 against the U.S. dollar, the European currency was soon lost the gains made by the will be held on Wednesday and Thursday, when the re-negotiation of the debt crisis the European to the emergence of a new arena, which encouraged investors to venture back into trading the U.S. dollar. This has been the euro was down to its lowest level on Friday to $ 1.4230 and then to close the week at 991.43, while the pound sterling have enjoyed the performance more positively, it opened the week at 1.6300 and then strengthened his position against the U.S. dollar, reaching its highest level at 1.6470, but closed the week at 261.64.
On the other hand, rose to prominence during the last week performance for the Japanese yen and Swiss franc, as the risk of the spread of the crisis to more European countries have sent investors to the currency trading Her gains, at least, having started the Japanese yen the week at 78.55, fell on Friday up to 76.73 and then to close the week at 76.77 The Swiss franc fell to its lowest level ever, reaching 10.785 and closed the week at 550.78.
Housing sector holds data disappointing
Sales of new homes in the United States unexpectedly and for the second consecutive month in June, which confirms that the housing sector stands in front of a period of two years before it reaches the stage of economic recovery, has declined annual sales to 312,000 units, and in return , housing prices fell in 20 U.S. cities to its lowest level in 18 months, which confirms that the housing sector is still weak. This has index "Standard & Poor's Case-Shiller", which tracks home prices in the 20 largest U.S. city, with a rate of 4.5% for the month of May of 2010, and is worth mentioning that the operations "foreclosure," which will be later addition to the lack of equal sum in the proportion of demand that would prevent a rise in house prices during the current year, which indicates that new construction would not be welcome and will be capable of blocking any improvement that could happen in the housing sector.
Consumer Confidence
Index of U.S. consumer confidence unexpectedly in July, after the decline continued for 8 months, and after that the improved outlook for the labor market and related Balsth the coming months, this has increased U.S. Consumer Confidence Index, a referendum economy prepared by the Conference Board (The Conference Board) , from 57.6 earned during the month of June, to 59.5.
Initial claims for unemployment compensation
Decline in the number of claims the initial compensation for unemployment to its lowest level since April, which indicates that the general weakness in the labor market has begun to recede, the decline in the number of claims to 24 000 claims for up to 398,000 claim after he had reached the 422 000 claims, Knowing that the market had expected for Trajaa in this issue of 412.000 claim.
Growth rates comes in contrast to expectations
Saw the U.S. economy during the spring growth came below expectations because of demand for U.S. consumers to reduce Anvaqath, while the economic outlook had predicted a slowdown more severe and also with the beginning of this year, has increased annual GDP by 1.3% after a rise of 0.4 % over the previous quarter, which is lower than expected, which stood at 1.8%. On the other hand, the decline in the labor market and income level may increase the risk of failure, which will rise in the proportion of sales during the remainder of 2011 in the budget situation. It should also be noted that the faltering economy of the country may experience a further blow resulting from the talks the U.S. Congress and on the conservation of government expenditures, which are one of the reasons that prompted the President of the U.S. Federal Reserve Ben Bernanke to Trsih should be careful all the policy makers to keep the doors open to all options.
European region
Reduce the credit rating of Greece continues
The agency, Standard & Poor's cut the credit rating of Greece again to the lowest levels of investment, after the oldest one of the officials in the credit rating agency debt Alsiadesh statement through a channel CNBC that it is likely that Greece will need to restructure the largest and most modern of its debt during the next two years, and the classification of Greece where long-term sovereign debt has been reduced from CCC to CC. It should be noted that the debt-laden Greece has the credit rating of the lowest in the world, especially after the Moody's cut the credit rating of Greece during the start of the week stating that he is sure to lag behind the country to repay their debts according to package financial aid that was last week, this was the agency Moody's cut the credit rating of Greece in three grades of up to CA-,, which is by Drahjh one on top of your category to default on debt payments.
Retail sales in Germany
Retail sales in Germany to the highest levels during the month of June due to lower unemployment rates, which enhanced the purchasing power of families, with taking into account the levels of inflation and seasonal fluctuations, sales rose by 6.3% for the month of May, with the knowledge that they have fallen by 2.5% during the period the former. It should be noted that this increase is the largest since 1991 and with the availability of data on the German Federal for the first time.
Inflation
Decreased levels of inflation during the month of July has exceeded expectations in the 17 countries in use of the euro, according to official reports issued on Friday, which raised expectations that the ECB will not need to raise interest rates as quickly as anticipated by the market. The consumer prices in the European region have risen by an annual rate of 2.5%, which is still exceeding the target by the European Central Bank, which provides for maintaining the levels of inflation below 2%, but they are not in line with market expectations firmly that figure at 2.7%.
United Kingdom
GDP decline
Slowdown in economic growth in the United Kingdom, according to the expectations of the market, which increases the pressure on the Bank of England to reach an approved plan to spur growth, the report showed gross domestic product that the UK economy has grown according to the reported expectations by 0.2%, which is a retreat from previous rate, which amounted to 0.5%, which indicates that the credit rating of sovereign debt outstanding on the United Kingdom will be subject to review by Moody's during the month of March, in case the country's economy could not bounce back in the third quarter.
Consumer confidence down
Sterling fell against the U.S. dollar after it said a report by a decrease in consumer confidence in July, cementing expectations that the Bank of England to delay the question of raising interest rates, the decline in the Consumer Confidence Index (GfK) five points for the month of June to reach - 30, a drop is worse than forecast, which predicted a decline to-26.
Housing prices in the United Kingdom
It is noted that housing prices on the way to stability, according to monthly reports released by the Nationwide Building Society, has increased prices on the length of the UK by 0.2% during the month of July for up to 168,731 pounds, down 0.4 percent from the previous year, The Association reported that demand for housing is still somewhat weak, knowing that sales are still full list of the level of almost half the levels recorded before the crisis.
Japan
Rates of inflation rise
Core consumer prices rose in Japan by 0.4% in June from the previous year, a rise for the third month in a row for the cost of goods, but the possibility of a change in the base year in the coming period would be dimming the economic outlook on trends in prices. The rise in the consumer price index core, which includes oil products, which excludes volatile prices such as prices of fruits and vegetables and fresh seafood, he has a little less than expected and predicted for an altitude of 0.5%, less than the increase of 0.6% during the month of May.
Industrial production
According to the Ministry of Economy, Trade and Industry, came to the industrial production contrary to expectations during the month of June, has increased production by 3.9% from the previous year, while it should be noted that this ratio has come without the expected rate, which amounted to 4.3%, which points to obtain a significant decline the gains achieved during the month of May, where production rose by 6.2%.
Unemployment is rising
Increased levels of unemployment in Japan from 4.5% in May to 4.6% during the month of June, which points to the weakness of the Japanese economy after the earthquake and tsunamis devastating that hit the country during the month of March, this may be the unemployment rate is worse than is visible, as the data economic development of the three provinces that were more affected by the disaster have been excluded from the survey of the country. According to the Ministry of Internal Affairs and Communications, the number of unemployed during the period reached 2.89 million people, an increase by an additional 60,000 people unemployed in June, according to official statistics reported.
Issued by the National Bank of KuwaitUnited States
A mixed performance in the foreign exchange markets
It should be noted that the financial markets stuck between two forces Mtnavdtin, the one hand, the risk of the spread of the crisis of Europe are expanding to affect more countries in the region, particularly to Italy, but in terms of the second deadline for having the debt ceiling U.S. will happen soon with the absence for any agreement in this regard until now. As a result, has lost the foreign exchange market direction during the last week to characterize the U.S. dollar performance differential against other foreign currencies, the euro has started the week so powerful was the highest at 1.4536 against the U.S. dollar, the European currency was soon lost the gains made by the will be held on Wednesday and Thursday, when the re-negotiation of the debt crisis the European to the emergence of a new arena, which encouraged investors to venture back into trading the U.S. dollar. This has been the euro was down to its lowest level on Friday to $ 1.4230 and then to close the week at 991.43, while the pound sterling have enjoyed the performance more positively, it opened the week at 1.6300 and then strengthened his position against the U.S. dollar, reaching its highest level at 1.6470, but closed the week at 261.64.
On the other hand, rose to prominence during the last week performance for the Japanese yen and Swiss franc, as the risk of the spread of the crisis to more European countries have sent investors to the currency trading Her gains, at least, having started the Japanese yen the week at 78.55, fell on Friday up to 76.73 and then to close the week at 76.77 The Swiss franc fell to its lowest level ever, reaching 10.785 and closed the week at 550.78.
Housing sector holds data disappointing
Sales of new homes in the United States unexpectedly and for the second consecutive month in June, which confirms that the housing sector stands in front of a period of two years before it reaches the stage of economic recovery, has declined annual sales to 312,000 units, and in return , housing prices fell in 20 U.S. cities to its lowest level in 18 months, which confirms that the housing sector is still weak. This has index "Standard & Poor's Case-Shiller", which tracks home prices in the 20 largest U.S. city, with a rate of 4.5% for the month of May of 2010, and is worth mentioning that the operations "foreclosure," which will be later addition to the lack of equal sum in the proportion of demand that would prevent a rise in house prices during the current year, which indicates that new construction would not be welcome and will be capable of blocking any improvement that could happen in the housing sector.
Consumer Confidence
Index of U.S. consumer confidence unexpectedly in July, after the decline continued for 8 months, and after that the improved outlook for the labor market and related Balsth the coming months, this has increased U.S. Consumer Confidence Index, a referendum economy prepared by the Conference Board (The Conference Board) , from 57.6 earned during the month of June, to 59.5.
Initial claims for unemployment compensation
Decline in the number of claims the initial compensation for unemployment to its lowest level since April, which indicates that the general weakness in the labor market has begun to recede, the decline in the number of claims to 24 000 claims for up to 398,000 claim after he had reached the 422 000 claims, Knowing that the market had expected for Trajaa in this issue of 412.000 claim.
Growth rates comes in contrast to expectations
Saw the U.S. economy during the spring growth came below expectations because of demand for U.S. consumers to reduce Anvaqath, while the economic outlook had predicted a slowdown more severe and also with the beginning of this year, has increased annual GDP by 1.3% after a rise of 0.4 % over the previous quarter, which is lower than expected, which stood at 1.8%. On the other hand, the decline in the labor market and income level may increase the risk of failure, which will rise in the proportion of sales during the remainder of 2011 in the budget situation. It should also be noted that the faltering economy of the country may experience a further blow resulting from the talks the U.S. Congress and on the conservation of government expenditures, which are one of the reasons that prompted the President of the U.S. Federal Reserve Ben Bernanke to Trsih should be careful all the policy makers to keep the doors open to all options.
European region
Reduce the credit rating of Greece continues
The agency, Standard & Poor's cut the credit rating of Greece again to the lowest levels of investment, after the oldest one of the officials in the credit rating agency debt Alsiadesh statement through a channel CNBC that it is likely that Greece will need to restructure the largest and most modern of its debt during the next two years, and the classification of Greece where long-term sovereign debt has been reduced from CCC to CC. It should be noted that the debt-laden Greece has the credit rating of the lowest in the world, especially after the Moody's cut the credit rating of Greece during the start of the week stating that he is sure to lag behind the country to repay their debts according to package financial aid that was last week, this was the agency Moody's cut the credit rating of Greece in three grades of up to CA-,, which is by Drahjh one on top of your category to default on debt payments.
Retail sales in Germany
Retail sales in Germany to the highest levels during the month of June due to lower unemployment rates, which enhanced the purchasing power of families, with taking into account the levels of inflation and seasonal fluctuations, sales rose by 6.3% for the month of May, with the knowledge that they have fallen by 2.5% during the period the former. It should be noted that this increase is the largest since 1991 and with the availability of data on the German Federal for the first time.
Inflation
Decreased levels of inflation during the month of July has exceeded expectations in the 17 countries in use of the euro, according to official reports issued on Friday, which raised expectations that the ECB will not need to raise interest rates as quickly as anticipated by the market. The consumer prices in the European region have risen by an annual rate of 2.5%, which is still exceeding the target by the European Central Bank, which provides for maintaining the levels of inflation below 2%, but they are not in line with market expectations firmly that figure at 2.7%.
United Kingdom
GDP decline
Slowdown in economic growth in the United Kingdom, according to the expectations of the market, which increases the pressure on the Bank of England to reach an approved plan to spur growth, the report showed gross domestic product that the UK economy has grown according to the reported expectations by 0.2%, which is a retreat from previous rate, which amounted to 0.5%, which indicates that the credit rating of sovereign debt outstanding on the United Kingdom will be subject to review by Moody's during the month of March, in case the country's economy could not bounce back in the third quarter.
Consumer confidence down
Sterling fell against the U.S. dollar after it said a report by a decrease in consumer confidence in July, cementing expectations that the Bank of England to delay the question of raising interest rates, the decline in the Consumer Confidence Index (GfK) five points for the month of June to reach - 30, a drop is worse than forecast, which predicted a decline to-26.
Housing prices in the United Kingdom
It is noted that housing prices on the way to stability, according to monthly reports released by the Nationwide Building Society, has increased prices on the length of the UK by 0.2% during the month of July for up to 168,731 pounds, down 0.4 percent from the previous year, The Association reported that demand for housing is still somewhat weak, knowing that sales are still full list of the level of almost half the levels recorded before the crisis.
Japan
Rates of inflation rise
Core consumer prices rose in Japan by 0.4% in June from the previous year, a rise for the third month in a row for the cost of goods, but the possibility of a change in the base year in the coming period would be dimming the economic outlook on trends in prices. The rise in the consumer price index core, which includes oil products, which excludes volatile prices such as prices of fruits and vegetables and fresh seafood, he has a little less than expected and predicted for an altitude of 0.5%, less than the increase of 0.6% during the month of May.
Industrial production
According to the Ministry of Economy, Trade and Industry, came to the industrial production contrary to expectations during the month of June, has increased production by 3.9% from the previous year, while it should be noted that this ratio has come without the expected rate, which amounted to 4.3%, which points to obtain a significant decline the gains achieved during the month of May, where production rose by 6.2%.
Unemployment is rising
Increased levels of unemployment in Japan from 4.5% in May to 4.6% during the month of June, which points to the weakness of the Japanese economy after the earthquake and tsunamis devastating that hit the country during the month of March, this may be the unemployment rate is worse than is visible, as the data economic development of the three provinces that were more affected by the disaster have been excluded from the survey of the country. According to the Ministry of Internal Affairs and Communications, the number of unemployed during the period reached 2.89 million people, an increase by an additional 60,000 people unemployed in June, according to official statistics reported.
