Printer Friendly
The Free Library
22,741,889 articles and books

Euro Reverses Losses On Positive German Employment Report, Yen Falls As Optimism Improves.



The Euro reached as high as 1.3885 on the back of a positive labor report which showed unemployment easing back to 8.2% from 8.3% as the economy only lost 1,000 jobs. Economist were expecting German companies to slash 64,000 workers from their payrolls as falling demand for exports continues to weigh on weigh on
Verb

to be oppressive or burdensome to: the expectations that weigh so heavily on diplomats' wives

Verb 1.
 revenues.Talking Points • Japanese Yen “Yen” redirects here. For the other use, see Yen (disambiguation).

“JPY” redirects here. For the Australian singer with the same moniker, see John Paul Young.
: Lower On Japanese Demand For Carry • Pound: Choppy After Failing To Hold 1.6000 • Euro: German Unemployment Falls To 8.2% • US Dollar: Durable Goods durable goods

Goods, such as appliances and automobiles, that have a useful life over a number of periods. Firms that produce durable goods are often subject to wide fluctuations in sales and profits. Also called consumer durables.
 On Tap Euro Reverses Losses On Positive German Employment Report, Yen Falls As Optimism Improves The Euro reached as high as 1.3885 on the back of a positive labor report which showed unemployment easing back to 8.2% from 8.3% as the economy only lost 1,000 jobs. Economist were expecting German companies to slash 64,000 workers from their payrolls as falling demand for exports continues to weigh on revenues. Meanwhile, the Bloomberg retail PMI See Private Mortgage Insurance.  indicator fell to 47.1 from 48.4 as weak labor conditions in the region continues to cause consumers to retrench re·trench  
v. re·trenched, re·trench·ing, re·trench·es

v.tr.
1. To cut down; reduce.

2. To remove, delete, or omit.

v.intr.
To curtail expenses; economize.
. This was evident as the Euro-zone consumer confidence reading remained unchanged at -31. However, economic confidence which is the more closely watched figure improved to 69.3 from 67.2 as low interest rates and government spending Government spending or government expenditure consists of government purchases, which can be financed by seigniorage, taxes, or government borrowing. It is considered to be one of the major components of gross domestic product.  is raising the outlook for future growth. The single currency reversed some of its losses from yesterday and continues to find support after the unemployment figures The stabilization of the German labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience  will go a long way in helping the Euro-zone get back on track and adds to the positive signs that the recession is bottoming. Indeed, ECB See electronic code book.  Vice-President Lucas Papademos Lucas Demetrios Papademos (Greek: Λουκάς Παπαδήμος; born 11 October 1947 in Athens), is the current Vice President of the European Central Bank.  stated "In the past few weeks [data]...suggest that the pace of decline in economic activity is moderating and the euro area is stabilizing." However, he would also caution that economic activity in 2009 will remain very weak which could start to impact Euro price action if we start to see other economies start to show signs of growth in the second half of the year. Committee member Ewald Nowotny reiterated those sentiments by saying that although he sees signs that the economy is bottoming, growth will remain weak after the crisis is over. The USD/JPY continued it s bullish momentum from yesterday's U.S, session through Asian trading which pushed the pair just shy of the 200-Day SMA (1) See SMA connector.

(2) (Shared Memory Architecture) See shared video memory.

(3) (Software Maintenance Association) A membership organization that began in 1985 and ended in 1996.
 at 97.20. Japanese demand for dollar denominated assets on the back of an improving outlook for the global economy has been a steady driver of price action. The Yen didn't receive any support from an improvement in retail trade of 0.6% in April. The improvement in domestic demand is another sign that confidence is rising in the country. Therefore, we may start to see the demand for carry start to pick up which could signal more weakness ahead for the Yen. It has been a mixed bag for the dollar overnight as its earlier gains against the Euro and pound have been reversed and it continues to see momentum versus the Yen. Scanning the headlines you can see the conflicting sentiments as surging bond yields are causing fear that government efforts aren't working and will reduce the chances of a recovery, while improving fundamental data and optimism is increasing its chances. The expected 0.5% rise in U.S. durable goods orders should add to the improving outlook for a global recovery which could weigh on the dollar as risk appetite picks up. U.S. futures are pointing toward a higher open despite the weakness in Europe which may be in anticipation of the positive fundamental data. Initial jobless claims and new home sales New Home Sales

An economic indicator that measures sales of newly built homes. Released by the U.S. Department of Commerce's Census Bureau, it includes both quantity and price statistics.
 are also due for release and are forecasted to improve mildly which will add to the increasing optimism. Will The EUR/USD Hold 1.4000? Join us in the Forum Related Articles: Dollar Bolstered as Debt Rating Confirmed, Risk Appetite Eases To discuss this report contact John Rivera Currency Analyst: jrivera@fxcm.com

2009 Al Bawaba (Albawaba.com)

Provided by Syndigate.info an Albawaba.com company
COPYRIGHT 2009 Al Bawaba (Middle East) Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Mena Report
Article Type:Statistical data
Geographic Code:4E
Date:May 28, 2009
Words:691
Previous Article:Euro-Zone Economic Confidence Rises to Six-Month High in May.
Next Article:Trend of the Day - AUD/JPY.
Topics:

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters