News and Reviews European Economic Zone

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News and Overview of the European Economic Zone

 

Euro Zone Industrial Output Up Unexpected

Wednesday, June 15, 2011

 

Euro-zone industrial production unexpectedly rose in April, pushed for an increase in output of consumer goods 'durable' high value such as electronics and furniture, official data showed.

 

Production in 17 countries using the euro rose 0.2% in April from March and up 5.2% in annual term, statistical agency Eurostat said.

 

This figure is the latest to highlight the differences in the euro-zone. Countries through a severe austerity program to combat the crippling levels of debt that they were among the worst. Portugal and Greece in particular at the bottom of the list for output growth.

 

April data for the currency bloc as a whole stronger than the consensus forecast of economists polled by Dow Jones Newswires last week. They give clues fell 0.2% in the month and year-over-year growth slowed at 5.0%.

 

Support a positive note, Eurostat figures were revised upward in March. Output flat in March, instead of the fall of the original report, and grow 5.8% this year - significantly stronger than the 5.3% figure released last month.

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News and Overview of the European Economic Zone

 

Ahead of FOMC, Euro Move Weakens

Wednesday, June 22, 2011

 

European currency is currently remove most of the earlier gains, as investors switched to focus on today's FOMC meeting.

After earning his new high at 1.4440 level just before the Prime Minister of Greece, Papandreou won a confidence vote to the decision-making assistance to the 6 time, the euro came under pressure when the country's selloff as investors believe the rumor and sell when the facts occurred, found a low level while at the level of 1.4355 before rebounding to test the 1.4400 level again. However, this time where Greece is still struggling with its debt crisis, the dollar still benefited ace back for 2 hours in the Tokyo session, when prices come back down to a session low at 1.4345 level.

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European Economic News and Review (UK)

 

Sterling Mix, Potential Sideways.

Monday, June 27, 2011

 

In forex trading the Asian session today (27-06), Pound Sterling monitored moving mix of several other major currencies.

 

Sterling moved lower against the U.S. dollar and strengthened against the Japanese Yen and Aussie Dollar.

 

At the end of trading last week Sterling also came under pressure from the U.S. dollar and Japanese yen but rebounded against the Aussie.

 

Analyst Research Vibiz of Vibiz Consulting suggests the market briefing sessions ahead of Europe in today's trading, the sterling rebound gained approximately +0.16%, or about 25 pips against the Aussie on GBP / USD, and rebounding 17 pips or about + 0.13% against the Yen on GBP / JPY.

 

Meanwhile Sterling weakened further observed thin on GBP / USD, and tracked down - 22 pips or about - 0.14%.

 

It is estimated that at today's pound sterling has the potential to move within a limited range and the intraday reversal berpole.

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European Economic News and Review (UK)

 

Early response Consumption Data, Sterling Rebounds Against U.S. Dollar.

Monday, June 27, 2011

 

Pound sterling currency on foreign exchange trading GBP / USD this afternoon (27-06) rallied and tracked the pair traded at around 1.5966.

 

Pound Sterling strengthened along with the increasing positive investor sentiment, linked to the decline in performance expectations in the consumption sector in which the United States dollar is the rival Sterling.

 

Indicator Personal Spending m / m U.S. expected to show a drop in performance and potentially decreased to 0.2% of the value of last period is 0.4%. It was early on a pro Sterling responded by investors in forex trading.

 

Analyst Research Vibiz of Vibiz Consulting suggests that the pound sterling currency in the currency pair GBP / USD is still expected to strengthen further, especially to data made ​​public.

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European Economic News and Review (Switzerland)

 

Swiss Franc Press Dollar, Early Response Data Personal Income m / m.

Monday, June 27, 2011

 

In trading pair USD / CHF European session this afternoon (27-06) Swiss franc strengthened against the dollar tracked the U.S. and in the range of 0.8358.

 

Swiss Franc currency forex investors increasingly in demand in line with the expected decline in economic performance in the United States where the dollar is a rival on the franc pair USD / CHF.

 

Latest information about the indicator Personal Income m / m which is scheduled to be released by the U.S. Bureau of Economic Analysis is still not expected to show improved performance.

 

Indicators Personal Income m / m still will grow by just 0.4% of the value of last period is also 0.4%.

 

Analyst Research Vibiz of Vibiz Consulting suggests that the Swiss franc on the currency pair USD / CHF is estimated to be strengthened further, especially until the data was announced.

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News and Overview of the European Economic Zone (Greece)

 

Ahead of the vote, Greece hit by strike

Tuesday, June 28, 2011

 

Workers in all Greece held a strike in protest over government plans implement austerity program, which is a requirement to get a bailout from the European Union.

 

Everyone from doctors, ambulance drivers, casino workers and even actors to join in the action, which will last until tomorrow. Hundreds of flights were canceled or rescheduled because of the air control officer to leave their workplace. Public transport workers are also not left behind, making jams across the capital.

 

Unions angry with the restructuring program budget of 28 billion euros, which includes cutting salaries and allowances of civil servants, and even layoffs, and tax increases, which took place at a time when unemployment has reached 16%, the highest in Europe.

 

Packages and implementation must be approved by parliament tomorrow and the day after voting to the European Union continued to disburse financial aid. Without that help, Greece would be threatened to be the first eurozone country to default, which feared domino effect as the bankruptcy of Lehman Brothers.

 

The plan sparked protests and even in the socialist camp, the party of Prime Minister George Papandreou. He struggled to control the unrest in his party to have to reshuffle. Speaking in a debate in parliament, to discuss tightening plan, Papandreou called on members to support the plan.

 

After the EU states are willing to disburse financial aid to Greece, and the creditors are willing to voluntarily follow the restructure, now living Yunanilah that awaited her role. Markets await the voting results of the Greek parliament on economic reform plans, including budget cuts, tax increases and the sale of state assets. Voting for tightening program implemented tomorrow and vote on implementation in the next day.

 

Finance Minister Evangelos Venizelos said the government acknowledged the cuts are not fair. "This step will take us from deficit to surplus. It's hard, but must be done, "he said.

 

Economic reform program is like a fruit simalakama for Greece. If approved, it could trigger social unrest. But if rejected, could be turmoil in financial markets.

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News and European Economic Review (UK)

 

Pound Testing Support 1.5910

Tuesday, June 28, 2011

 

Pound recovery efforts from a low position yesterday at 1.5910 area seems to have stopped right at the psychological level of 1.6000, and then turned down as terbebaninya GBP / USD by the British weak GDP figures. Currently Pound offered in the range of 1.5950 after briefly testing the support at 1.5910 level.

Below the 1.5910/15 area (low-June 27), the currency pair may be able to find the next support at 1.5825 (low January 28) and 1.5750 (low January 25). In contrast, the nearest resistance level at 1.6000 area (psychological level), then at 1.6045/50 (high June 24) and 1.6080/90 (low 16/17 Jun).

 

While the rebound in USD / JPY daily from a low position in 128.75 has been limited by the level of 129.20, and then turned down after the release of UK economic data to hit a new daily low at 128.63.

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News and Overview of the European Economic Zone

 

Mixed European stock exchange, investors were cautious ahead of Voting

Tuesday, June 28, 2011

 

Separation bourses in Europe moves mixed on Tuesday as investors began to be cautious ahead of crucial vote in parliament Greece related austerity measures from the government, with Cable & Wireless Worldwide shares led declines in the telecommunications sector.

Eurostoxx 50 index gained about 0.4%, Germany's DAX index losing 0.2% after senpat rose in early trading, while the French CAC index gained more than 0.5%. In Britain, the FTSE index traded 0.3% higher in 2 hours after the opening bell.

 

Investor sentiment was lifted early in the session amid growing optimism about the results of voting will be done the Greek parliament to approve the plan pengehematan 5-year steps proposed by the administration of George Papandreu, and rumors about the progress of Sarkozy's efforts in convincing the French Banking and Insurance Corporation to accept the rollover of ownership Greek debt.

 

However, trade union demonstrations for 48 hours starting Tuesday will certainly hinder public services and less burdensome on the movement of the stock market.

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Overview and Economic News European Zone

 

Anticipation of Pre and Post Movement Extreme Voice Vote Greek parliament

Wednesday, June 29, 2011

 

The euro moved fluctuate and is still around in the area after appreciating strongly against the U.S. dollar. However, strengthening still appeared to be limited ahead of a crucial vote related to the Greek parliament austerity measures, which is indispensable to avoid the occurrence of the first default in the Euro zone.

 

Some analysts assess the potential euro rallied when voting Greek passable with good results, although it does not mean that the Euro has been freed from the pressure given that most investors are still concerned with the large debt burden Greece, while the bailout will only delay the occurrence of default.

 

Another stumbling block for the EU's own requirements that give rise to criticism of the package, including the country's central bank governor said the Greeks themselves are still too high taxes and spending levels have not been reduced. Indications happens if PM George Papandreou won the vote, supporters of the move in the future is still less convincing, especially in terms of potentially problematic implementation. Another negative factor for the euro is rallyg economic data indicated a less positive than the initial estimate of euro zone inflation is expected to be released Thursday will not change much at the level of 2.7% and potentially suppress the ECB not to raise interest rates again as promised earlier in early June ago.

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European Economic News and Review (German)

 

German GfK Consumer Index Expect Increase in Income

Wednesday, June 29, 2011

 

Forward-looking German market research group GfK consumer climate index will rise in July as income expectations improved significantly and the upward momentum of the German economy, the Reuters news agency, said Tuesday.

 

The index is set to come in 5.7 points for July, following an upwardly revised 5.6 points for June. Prelimary data show readings 5.5 points for June.

 

This was above economists 'forecasts' of 5.4 points in the Dow Jones Newswires survey.

 

While overall GfK consumer climate index refers to the next month, its subindexes - economic expectations, income expectations and propensity to buy - see the current month.

Third subindexes rose in June.

 

Economic expectations index rose to 50.3 in June from 46.1 in May. Income expectations index jumped to 44.6 from 25.9, while the propensity to buy rose to 35.1 from 31.5.

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European Economic News and Review (UK)

 

UK Income Falling For the second consecutive quarter

Wednesday, June 29, 2011

 

 

Household income used UK fell for the second consecutive quarter in the first three months of 2011, forcing consumers to spend all their savings to maintain her lifestyle, official data showed on Tuesday (28 / 6).

 

At the end of the record first-quarter economic performance, the Office for National Statistics (ONS) said gross domestic product (GDP) grew an unrevised 0.5% between January and March after declining 0.5% in the fourth quarter.

 

Economists polled by Dow Jones Newswires not expect the revision to first quarter figures.

 

However, ONS revised down the GDP growth on an annual basis to 1.6% from 1.8% due to revisions in the previous quarter of 2010.

 

ONS said the real income of households that used to fall by 0.8% in the first quarter after declining from 0.9% in quarter four years ago.

 

The decline in real income was the result of households being pinched between the inflation of 4.5% - more than twice the target of the Bank of England (BoE) at 2.0% - and stagnant wage growth. Household savings ratio fell to 4.6% in the first quarter from 5.1% in quarter four.

 

The decline came despite the increase in savings in wages - which grew by 0.9% in the first quarter compared with a 0.5% increase on the previous quarter - indicating that consumers must take their savings to maintain her lifestyle because of high inflation.

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News and European Economic Review (UK)

 

England Action Demo Paint, Worrying Economic Data

Thursday, June 30, 2011

 

In addition to in Greece, the issue of pruning also move the masses in other European continental countries. Today, the workers staged a demonstration of various sectors in the UK for 24 hours against budget cuts by the government. Action like this is the first time in a dozen years. Unions take the fight against unpopular policies taken by the Liberal-Conservative coalition that took power in May 2010.

 

Three teachers union and a public service organizations mobilize all members to take to the streets. One of the rejected plan is the addition of worker pension limit to 66 years. The government assumes that the move was fair enough, refers to the age demographic projections longer citizens. A total of 750 union members expected to take part so that the various sectors will be disrupted. School holidays, flight schedule delays, termination of water management and closure of the court are the consequences that must dutanggung countries due to the demonstration.

 

Worrisome economic data from the Current State of English is a UK current account recorded a deficit of? -9.354 Billion in the first quarter of 2011, compared with? -12.956 Billion in the previous quarter, according to data published by the Central Board of National Statistics. Analysts expect the deficit to narrow to -4.700? billion. The balance of the first quarter was equivalent to -2.5% of GDP, compared with -3.5% in the previous quarter.

 

Other data reported to the Bureau of Statistics England declared trade declined in April triggered a decline in demand from consumer countries. As a result, in April, a decline of trade value to 7.38 billion pounds compared with 7.70 billion pounds the previous month. However, the decrease was lower than analyst forecasts which predict 7.55 billion pounds.

 

Economists said that while angkaangka shows that exports will contribute positively to overall economic growth in the second quarter despite disappointing export levels of stability. Investec economist Philip Shaw said the latest data in the field of trade do not give confirmation to the business that exports contribute to more meaningful economic recovery in the UK. UK Statistics Center estimates, exports will rise this month, only 0.1% and imports fell 0.9%.

 

Pound weaker as signaled by the presence of less favorable to the British economy, where it is shown by the reduced performance of the housing sector in the country.

[mynameisandhy]

News and Overview of the European Economic Zone

 

Euro Gains After Voting Greece

Thursday, June 30, 2011

 

Investors are still buying euros after the Greek policy makers still approve the bill despite fiscal austerity hit rallies and still provide opportunities both aid package from the European authorities.

 

The euro traded near its highest level above the 1:44 2-week vs. the dollar, after the vote is to reduce the chances of Greece's debt default in the short term.

 

The focus now turning on the vote Thursday, and the meeting of European finance ministers on Sunday over plans a second aid package for Greece. Yet market participants have to discount the positive results of post-meeting approval of the new fiscal austerity measures in the Greek parliament.

 

The rally may continue, ahead of the Independence Day holiday in the U.S. as well as closing the book end of the month. Key technical level of the target this week is still located in the area of ​​1:45 and 1.4550.

 

Another factor that strengthens the Euro is a comment ECB President Jean-Claude Trichet previously that the central bank has been prioritizing inflation in the euro zone, which indicates the increase in policy interest rates can still run despite the debt crisis.

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News and Overview of the European Economic Zone (Germany)

 

Stable German June unemployment rate of 7%

Thursday, June 30, 2011

 

German adjusted unemployment rate fell further below the 3 million in June, offering more evidence that strong economic growth the country is being equipped with job creation, data from the Federal Labor Office showed on Thursday

 

Adjusted unemployment rate held steady at 7% in June from May, maintaining the lowest level since records began in 1999.

 

In adjusted terms, unemployment in June fell to 2.893 million from 2.960 million in May. The number of unemployed fell a seasonally adjusted 8000 for a month, as happened in May.

 

Economists in a Dow Jones Newswires poll had forecast adjusted unemployment rate to hold steady at 7%, but the estimated slope of 15,000 in unemployment.

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News and Overview of the European Economic Zone (Italy)

 

S & P: Italy Still At Risk downgrade

Friday, July 1, 2011

 

Rating agency Standard & Poor's on Friday said it still sees 1 to 3 chances to cut Italy's credit rating in the next 24 months, although the authorities there on the day Kmais ago has launched an additional austerity measures.

S & P rate if several steps, including trimming more on public sector wages and improvement of tax cuts are complex, will indirectly improve competitiveness, so that the necessary steps further to increase private sector investment and encourage the level of wages in accordance with productivity.

 

"Without such measures, we believe the target of the Italian economy will not materialize. And the ratio of debt reached 119% of GDP in 2010 will be difficult

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News and Overview of the European Economic Zone

 

Euro zone manufacturing PMI fell to 52.0 in June

Friday, July 1, 2011

 

Manufacturing activity throughout the 17-nation euro zone grew at the slowest speed in the 18 months in June, the Markit purchasing managers index for the sector show on Friday (1 / 7).

 

Manufacturing PMI fell to 52.0 from 54.6 in May, confirming previous estimates. Records of more than 50 signifies growth in activity.

 

"Over the last two months, output growth weakened to the widest since 2008," said Chris Williamson, chief economist at Markit.

 

"This reflects a combination of sluggish domestic demand in many countries, particularly surrounding the untouchable savings also stagnation of export sales in the near future."

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News and Overview of the European Economic Zone

 

Euro-Zone Unemployment May Not Changed In 9.9%

Friday, July 1, 2011

 

The unemployment rate in 17-euro zone countries hold at 9.9% in May, unchanged from April, the EU agency Eurostat reported Staistik, Friday (1 / 7).

 

This figure is in accordance with forecasts. The number of unemployed in the euro-zone rose by 16.000 between April and May to 15:51 million, Eurostat estimate.

 

Among the individual member states, the lowest unemployment rate in the Netherlands looked at 4.2%, while in Spain the highest at 20.9%.

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News and European Economic Review (UK)

 

Manufacturing growth injures Pound

Monday, July 4, 2011

 

Sterling weakened against most major currencies and hit a 15-month low against the euro on Friday as signs of economic recovery slowing England back to reduce the expectation of rising interest rates. Economic data showed consumers increased pessimism and manufacturing growth slowed beyond expectations in June, while the central bank's survey estimates that the reduced filing of mortgages in the 3rd quarter.

"Investors are completely ignores the middle of Sterling over the worsening outlook for economic growth in the UK," said Peter Rosenstreich, chief forex analyst at Swissquote Bank SA in Geneva. "If growth continues to erode propek then it is likely a rate hike will further away." Deutsche Bank AG has turned back the projected rise in interest rates the Bank of England to be at least in February next year, from earlier in November.

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News and European Economic Review (Switzerland)

 

With the easing of interest franc depreciates Safe Haven

Monday, July 4, 2011

 

Swiss franc depreciated against 16 major currencies as investors switched to hunt yielding currencies higher on the belief of policy makers and bankers that Greece has been spared from the default. "Default risk has subsided significantly and Greece showed a positive development, so the trader reducing safe-haven buying. They are more interested in buying Euro and other currencies," said Kathy Lien, director of currency research at GFT Forex in New York. Franc also weakened for the day-to-5 in a row versus the euro after data showed a Swiss manufacturing growth slowed.

"Swissie has become a safe-haven currency which is quite good, especially if the market was away from the Euro because of the short-term risks," said Ulrich Leuchtmann, head of forex strategy at Commerzbank AG in Frankfurt. "But with the short-term risks in the euro zone eased, then the condition to be turning. Swissie would appear to weaken during events that pose no risk of the eurozone."

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News and European Economic Review (UK)

 

Technical Rebound Ahead Sterling Construction Data Release.

Monday, July 4, 2011

 

In forex trading the Asian session today (04-07), British Pound continue to move generally observed rebound strengthened against several other major currencies.

 

Sterling moved higher against the U.S. dollar, strengthened against the Japanese yen thin and strengthened against the Australian dollar in trading yesterday after moving tracked mix.

 

Against the Australian dollar cross rates on GBP / USD, Sterling rose sharply this morning at around + 50 pips or about + 0.34%, up from about +11 pips or about +0.07% on GBP / USD and edged +7 pips or about +0.05% against the Japanese yen on the GBP / JPY.

 

Analyst Research Vibiz of Vibiz Consulting suggests the market briefing ahead of the European session today that the pound could potentially respond to the economic research institute report Markit is scheduled to release its latest data on the indicators of the UK construction sector at 15:30 (GMT) later.

 

Indicator Construction PMI is expected to show a slowing of performance and estimates the value dropped to 53.6 from 54.0 last period ie.

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News and Overview of the European Economic Zone (UK)

 

UK Construction PMI Shows Activity recede

Tuesday, July 5, 2011

 

UK construction sector activity grew at the slowest acceleration in June and businesses were less optimistic than this year, a survey showed on Monday (1 / 7).

 

Construction purchasing managers' index (PMI) UK fell to 53.6 from 54.0, Markit Economics said the survey collector.

 

That figure is in accordance with eskpektasi than economists forecast in a Dow Jones Newswires poll last week of moderate slowdown to 53.5. Note in the top 50 shows are growing.

 

June figures show the sector is expanding throughout the second quarter of this year. Sarah Bingham, an economist at Markit, said the notes "round of robust growth next quarter, though down in the first quarter."

 

But the survey shows optimism it the lowest in June this year, while companies cut jobs at the fastest pace since January.

[mynameisandhy]

News and Overview of the European Economic Zone (UK)

 

UK Manufacturing PMI June Fall Into Low 21 Months

Tuesday, July 5, 2011

 

British manufacturing activity in June grew at the slowest acceleration in 21 months, with new orders declined for the second consecutive month, the Markit / CIPS purchasing managers index for the sector show on Friday (1 / 7).

 

The index fell to 51.3 from a revised 52.0 in May. Economists predict a record at 52.5.

 

"With the headwind is already in place and the austerity measures are likely to put pressure on the opposing domestic demand and consumer, it appears as though manufacturing has entered a phase of slow growth that can be with us for some time," said Rob Dobson, senior economist at Markit.

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News and European Economic Review (Germany)

 

German Factory Orders Rise in Foreign Prediction

Wednesday, July 6, 2011

 

Germany, the country with the biggest economy of Europe region recorded a Factory Orders increased beyond forecasts in May. Factory Orders Increased as a result of domestic demand for investment goods such as machinery production.

 

Factory Orders increased 1.8% from April, which economists had forecast a decline of 0.5% in a survey conducted by Bloomberg News.

 

"Orders of machinery production will continue to rise in coming months while the rate of growth will be slightly less dynamic than at the beginning of this year," said Juergen Michels, an economist at Citigroup Global Markets. Still he thought Germany would remain a growth driver in Europe and expansion of the machines may be increasingly driven by domestic demand.

 

Ifo Institute in Munich last month predicted Germany's economy probably grew 3.3% higher this year. The growth of the German economy is inseparable from the role of companies that depend on the production machinery. In the same occasion the agency projected the gross domestic product could grow 2.4%.

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News and European Economic Review (UK)

 

UK House Prices Rise In June

Wednesday, July 6, 2011

 

UK house prices rose unexpectedly in June, but will likely struggle to maintain that growth in the coming months, the mortgage lender Halifax said Wednesday.

 

Halifax house price index rose 1.2% in June from May. Annual decline - measured during the three months to June from the same period a year ago - narrowed to 3.5% from 4.1% decline in May.

 

"The economy is slowly improving and maintaining low interest rates should help to support a broad stability in the market over the coming months," said Martin Ellis, Halifax housing economist.

 

But he said the market was "likely will continue to face significant headwinds are expected to limit demand for housing."

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News and European Economic Review (Switzerland)

 

Swiss Franc Weakens Ahead Release Data U.S. Services Sector.

Wednesday, July 6, 2011

 

In trading pair USD / CHF European session this afternoon (06-07) as a rival Swiss Franc U.S. Dollar weakened and tracked moves in the range of 0.8411.

 

Recent information regarding the Non-Manufacturing ISM indicators PMI which is scheduled to be released by the Institute for Supply Management this evening (GMT) basically expected to show a decrease in performance on the U.S. services sector. However, the market seemed to respond early pro U.S. Dollar.

 

Indicator ISM Non-Manufacturing PMI is expected to show decreased performance and the estimated value fell to 53.9 from 54.6 last period ie.

 

Analyst Research Vibiz of Vibiz Consulting suggests that the Swiss franc on the currency pair USD / CHF is still expected to strengthen further, especially until the data was announced.