Report: debt crisis countries of the euro area back to the forefront of a new
Source: Journal of foreign currencies
United StatesU.S. dollar strengthens its position
The U.S. dollar began last week from a strong position against major currencies, with the recurrence of some of the problems of debt within the United States of the euro. On the other hand, has maintained a strong earthquake followed by the massive tsunami that struck Japan on the same trends in the forex markets, which caused the decline of the dollar against other major currencies. The euro has begun to level of 1.3987 for the week, then be able to achieve high levels of 1.4036 reached on Monday. In the wake of a Moody's credit rating by reducing the degree of both Greece and Spain, reached the level of the European currency reached 1.3750, and then to rise at the end of the week to $ 3.3905. The pound sterling has followed the same pace over the past week has witnessed a rise of 1.6342 on Monday, but quickly recorded a fall to $ 1.5977 after the Bank of England meeting on Thursday, to close the week at 1.6085. This has been trading the Swiss franc during the NPS at a level last reached at least 0.9235 and above amounted to 0.9370, to close the week at 0.9300. This has proceeded as well as the Japanese yen on the same pace for all other currencies over the past week. The dollar has strengthened his position against the Japanese yen, where levels rose to $ 83.30 on Friday, but the earthquake that occurred in Japan have caused expectations to restore the appearance of the judge to restore deposits to Japan, which caused a wave of buying the Japanese yen. Consequently, the yen fell to 81.66, to close at 81.85 after.
Deficit in the U.S. trade balance
Deficit rose in the U.S. trade balance in January has exceeded expectations to reach its highest level in seven months, due to the large increase in imports, along with higher crude oil prices, which had the largest impact from the impact of exports, which rose to record levels during that month. Has widened the gap between exports and imports by 15% to reach 46.3 billion dollars from 40.3 billion dollars in the month of December, while imports rose by 5.2%, marking the biggest rise since March 1993, exports rose by 2.7%.
High number of initial claims for unemployment compensation
The number of Americans are demanding compensation for the loss of their jobs after that number had dropped to its lowest level in almost three years, who it highlights the disparate nature of the efforts to improve conditions in the U.S. labor market. The number of claims for the first time to claim to 26.000 up to 397.000 claim, which was down to 368.000 in the previous week, the lowest levels.
Retail Sales
Retail sales increase exceeded expectations during the month of February, and attributed this increase, the largest of its kind in four months, to the sharp rise witnessed by the purchases of cars to the fuel which is witnessing a rise in prices. Announced the U.S. Department of Commerce for a rise of 1.0% after a rise in purchases of 0.7% (after adjustment) in January, noting that economists had expected sales to rise by 0.7% during the month.
University of Michigan index of consumer attitudes
Index of consumer reviews prepared by the University of Michigan in March by more than expected as the sharp rise in fuel prices has been a heavy burden on family budgets, and index fell first to the views of consumers to 68.2 points from 77.5 points in February, was among the market expects lower this index to 76.3 points.
The euro areaMoody's reduced the degree of classification of Spain and Greece
Increased concerns over the past week from the way that would address the European policymakers debt crisis on the impact of the Moody's during the week to reduce the degree of credit rating of Greece and Spain, came to reduce the degree of classification of Spain, one degree to become a Aa2 accompanied by the possibility of further reductions in the future. The move, which came on the effect of reducing the degree of Greece's credit rating by three points earlier in the week to increase negative feelings toward the countries that suffer from significant difficulties in terms of sovereign debt in the euro area.
United KingdomBank of England keeps interest rate unchanged
The Bank of England kept its benchmark interest rate as it is unchanged at 0.5%, although the survival rate of inflation above the 2% target by the central bank and the fourth month in a row, and the markets expected to remain the Bank of England interest rate at the current level of 0.5% in spite of the pressures faced by the bank to raise interest rates in order to curb inflation, which is growing rapidly, and was the bank's view is that the economy is still weak enough not to allow him to bear any increase in borrowing costs.
Rise in industrial production
Industrial production in the UK in January, the largest increase since 10 months, which indicates that the economy has returned to growth again after a setback short brought to bear, which came as a result of bad weather during the winter, which prevented the achievement of any real growth during the previous period. The increased production factories in the United Kingdom increased by 1% compared to December, which fell when factory production rose 0.1% from the previous month.
JapanPreliminary results of the Japanese quake
The Japanese yen rose against the U.S. dollar, while oil prices and the stock market has fallen because of the implications of the Japanese earthquake, as investors stampede to see how their effects on the third-largest economy in the world and the global recovery process. The earthquake struck Japan's Nikkei index closed ahead of the shares of major Japanese companies, which fell by $ 1.7% that day. The yen has declined against the dollar in the beginning but soon rose a little, especially after taking investors into account the repercussions that occurred previously when you get earthquake cup in 1995, where it is likely for an increase in the amount of insurance paid and to the possibility that companies restore their deposits.
Decline in GDP for the year 2010 final
Decline in the Japanese economy by more than initial estimates during the last quarter of 2010, it was found that business investment and private consumption has been weaker than expected, and gross domestic product declined at an annual rate of 1.3% during the last quarter of 2010, and the initial estimates announced last month reported that the rate of decline in GDP amounted to 1.1%.
Demands on the basic mechanisms
Increased demands on the mechanisms in Japan in January by more than expected, indicating that companies will increase the rates of expenditure after the high rates of economic recovery abroad, factory orders rose by 4.2% compared to December, its biggest gain in five months .
World news
Deficit in the trade balance of China
China announced that it had recorded a deficit is anticipated in the trade balance of 7.3 billion dollars due to confusion of the movement of Chinese exports because of the Lunar New Year holiday, comes this negative performance after achieving a surplus of $ 6.5 billion in January, noting that economists had expected a surplus of 4.9 billion dollars.
The Chinese exports have risen by 2.4% compared with the figure a year ago, while imports registered a sharp rise of 19.4%. And can result in recording its first trade deficit since March of last year to ease pressure on the Chinese government to revalue its currency (the yuan), and U.S. Treasury Secretary, Timothy Geithner, has called on numerous occasions to speed up the pace of raising the price of the yuan against other currencies.
Oil
The price of crude oil in New York, the biggest decline in seven weeks after Japan was the largest earthquake experienced in its history after the quake that led to the closure of refineries in the third-largest economy oil consumer in the world. The market saw the first weekly decline in oil prices since a month after the earthquake a magnitude of 8.9 points. Oil prices have fallen by 1.1 percent to 114.16 dollars a barrel, despite a wave of protests taking place in Saudi Arabia.__________________
Source: Journal of foreign currencies
United StatesU.S. dollar strengthens its position
The U.S. dollar began last week from a strong position against major currencies, with the recurrence of some of the problems of debt within the United States of the euro. On the other hand, has maintained a strong earthquake followed by the massive tsunami that struck Japan on the same trends in the forex markets, which caused the decline of the dollar against other major currencies. The euro has begun to level of 1.3987 for the week, then be able to achieve high levels of 1.4036 reached on Monday. In the wake of a Moody's credit rating by reducing the degree of both Greece and Spain, reached the level of the European currency reached 1.3750, and then to rise at the end of the week to $ 3.3905. The pound sterling has followed the same pace over the past week has witnessed a rise of 1.6342 on Monday, but quickly recorded a fall to $ 1.5977 after the Bank of England meeting on Thursday, to close the week at 1.6085. This has been trading the Swiss franc during the NPS at a level last reached at least 0.9235 and above amounted to 0.9370, to close the week at 0.9300. This has proceeded as well as the Japanese yen on the same pace for all other currencies over the past week. The dollar has strengthened his position against the Japanese yen, where levels rose to $ 83.30 on Friday, but the earthquake that occurred in Japan have caused expectations to restore the appearance of the judge to restore deposits to Japan, which caused a wave of buying the Japanese yen. Consequently, the yen fell to 81.66, to close at 81.85 after.
Deficit in the U.S. trade balance
Deficit rose in the U.S. trade balance in January has exceeded expectations to reach its highest level in seven months, due to the large increase in imports, along with higher crude oil prices, which had the largest impact from the impact of exports, which rose to record levels during that month. Has widened the gap between exports and imports by 15% to reach 46.3 billion dollars from 40.3 billion dollars in the month of December, while imports rose by 5.2%, marking the biggest rise since March 1993, exports rose by 2.7%.
High number of initial claims for unemployment compensation
The number of Americans are demanding compensation for the loss of their jobs after that number had dropped to its lowest level in almost three years, who it highlights the disparate nature of the efforts to improve conditions in the U.S. labor market. The number of claims for the first time to claim to 26.000 up to 397.000 claim, which was down to 368.000 in the previous week, the lowest levels.
Retail Sales
Retail sales increase exceeded expectations during the month of February, and attributed this increase, the largest of its kind in four months, to the sharp rise witnessed by the purchases of cars to the fuel which is witnessing a rise in prices. Announced the U.S. Department of Commerce for a rise of 1.0% after a rise in purchases of 0.7% (after adjustment) in January, noting that economists had expected sales to rise by 0.7% during the month.
University of Michigan index of consumer attitudes
Index of consumer reviews prepared by the University of Michigan in March by more than expected as the sharp rise in fuel prices has been a heavy burden on family budgets, and index fell first to the views of consumers to 68.2 points from 77.5 points in February, was among the market expects lower this index to 76.3 points.
The euro areaMoody's reduced the degree of classification of Spain and Greece
Increased concerns over the past week from the way that would address the European policymakers debt crisis on the impact of the Moody's during the week to reduce the degree of credit rating of Greece and Spain, came to reduce the degree of classification of Spain, one degree to become a Aa2 accompanied by the possibility of further reductions in the future. The move, which came on the effect of reducing the degree of Greece's credit rating by three points earlier in the week to increase negative feelings toward the countries that suffer from significant difficulties in terms of sovereign debt in the euro area.
United KingdomBank of England keeps interest rate unchanged
The Bank of England kept its benchmark interest rate as it is unchanged at 0.5%, although the survival rate of inflation above the 2% target by the central bank and the fourth month in a row, and the markets expected to remain the Bank of England interest rate at the current level of 0.5% in spite of the pressures faced by the bank to raise interest rates in order to curb inflation, which is growing rapidly, and was the bank's view is that the economy is still weak enough not to allow him to bear any increase in borrowing costs.
Rise in industrial production
Industrial production in the UK in January, the largest increase since 10 months, which indicates that the economy has returned to growth again after a setback short brought to bear, which came as a result of bad weather during the winter, which prevented the achievement of any real growth during the previous period. The increased production factories in the United Kingdom increased by 1% compared to December, which fell when factory production rose 0.1% from the previous month.
JapanPreliminary results of the Japanese quake
The Japanese yen rose against the U.S. dollar, while oil prices and the stock market has fallen because of the implications of the Japanese earthquake, as investors stampede to see how their effects on the third-largest economy in the world and the global recovery process. The earthquake struck Japan's Nikkei index closed ahead of the shares of major Japanese companies, which fell by $ 1.7% that day. The yen has declined against the dollar in the beginning but soon rose a little, especially after taking investors into account the repercussions that occurred previously when you get earthquake cup in 1995, where it is likely for an increase in the amount of insurance paid and to the possibility that companies restore their deposits.
Decline in GDP for the year 2010 final
Decline in the Japanese economy by more than initial estimates during the last quarter of 2010, it was found that business investment and private consumption has been weaker than expected, and gross domestic product declined at an annual rate of 1.3% during the last quarter of 2010, and the initial estimates announced last month reported that the rate of decline in GDP amounted to 1.1%.
Demands on the basic mechanisms
Increased demands on the mechanisms in Japan in January by more than expected, indicating that companies will increase the rates of expenditure after the high rates of economic recovery abroad, factory orders rose by 4.2% compared to December, its biggest gain in five months .
World news
Deficit in the trade balance of China
China announced that it had recorded a deficit is anticipated in the trade balance of 7.3 billion dollars due to confusion of the movement of Chinese exports because of the Lunar New Year holiday, comes this negative performance after achieving a surplus of $ 6.5 billion in January, noting that economists had expected a surplus of 4.9 billion dollars.
The Chinese exports have risen by 2.4% compared with the figure a year ago, while imports registered a sharp rise of 19.4%. And can result in recording its first trade deficit since March of last year to ease pressure on the Chinese government to revalue its currency (the yuan), and U.S. Treasury Secretary, Timothy Geithner, has called on numerous occasions to speed up the pace of raising the price of the yuan against other currencies.
Oil
The price of crude oil in New York, the biggest decline in seven weeks after Japan was the largest earthquake experienced in its history after the quake that led to the closure of refineries in the third-largest economy oil consumer in the world. The market saw the first weekly decline in oil prices since a month after the earthquake a magnitude of 8.9 points. Oil prices have fallen by 1.1 percent to 114.16 dollars a barrel, despite a wave of protests taking place in Saudi Arabia.__________________
