Forex Markets: Tools and Information: December 2011

Wednesday, December 28, 2011

European Shares Snap Gains, End Lower in Thin Trade

News: European shares end lower on Wednesday tracking losses
in US in choppy session FTSEurofirst 300 index provisionally closed
0.6 percent lower at 984.91, having traded just 37 percent of its
90-day volume average. The material has been provided by Instaforex
Company - instaforex.com

Hong Kong Trade Balance Due On Thursday

Hong Kong is on Thursday scheduled to release November
figures for imports, exports and trade balance, highlighting a
light day for Asia-Pacific economic activity. Imports are expected
to rise 2.0 percent on year after jumping 10.9 percent in October.
Exports are tipped to add 0.5 percent on year after collecting 11.5
percent in the previous month. The trade balance is expected to
show a deficit of 28.1 billion Hong Kong dollars following the 23.1
billion HKD shortfall a month earlier. South Korea will announce
industrial production numbers for November, with forecasts calling
for an increase of 6.0 percent on year. That follows the 6.2
percent annual expansion in October. The material has been provided
by Instaforex Company - instaforex.com

*South Korea November Industrial Output +5.6% On Year

South Korea November Industrial Output +5.6% On Year The
material has been provided by Instaforex Company -
instaforex.com

Europe's Ftseurofirst 300 Provisionally Ends down 0.6 Pct to 984.91 Points

EUROPE'S FTSEUROFIRST 300 PROVISIONALLY ENDS DOWN 0.6 PCT TO
984.91 POINTS The material has been provided by Instaforex Company
- instaforex.com

*Singapore Nov. Manufactured Products Prices Rise 8.5% On Year Vs. 8.8% In Oct.

Singapore Nov. Manufactured Products Prices Rise 8.5% On Year
Vs. 8.8% In Oct. The material has been provided by Instaforex
Company - instaforex.com

Dollar And Yen Steady After Surging Up On Eurozone Worries

The dollar and yen, which extended their Wednesday's rally
against other major currencies in early Asian trading on Thursday
amid renewed worries about the European debt crisis, held steady
after 7:15 pm ET. Risk aversion grew in markets yesterday following
news that the European Central Bank's balance sheet has jumped to a
record high. The ECB said its balance sheet surged up by 239
billion euros in the week ended December 23rd to an all-time high
of 2.73 trillion euros. The sharp increase reflected a 214 billion
euro increase in lending to euro-area banks. The news regarding the
ECB balance sheet overshadowed news that Italy held two successful
bond auctions that drew yields that were well below a month ago. In
today's early Asian trading, the US dollar jumped to near a 1-year
high of 1.2889 against the euro, 9-day high of 1.0047 against the
Aussie, 15-day high of 1.5430 against the pound, 2-week high of
0.9454 against the franc, 8-day high of 0.7657 against the NZ
dollar and a 1-week high of 1.0271 against the Canadian dollar.
Meanwhile, the yen rose to 9-day highs of 78.23 against the Aussie
and 59.82 against the NZ dollar, fresh 10-year high of 100.38
against the euro, 2-week high of 82.40 against the franc, 1-month
high of 120.11 against the pound and an 8-day high of 75.85 against
the Canadian dollar. At present, the greenback is worth 1.2920
against the euro, 1.5449 against the pound, 0.9440 against the
franc, 1.0078 against the Aussie, 0.7684 against the NZ dollar and
1.0246 against the Canadian dollar. The yen is currently trading at
100.56 against the euro, 120.24 against the pound, 82.49 against
the franc, 78.44 against the Aussie, 59.81 against the NZ dollar
and 75.99 against the Canadian dollar. The Eurozone M3 money supply
for November and the Italian business confidence for December are
slated for release in the European session. The U.S. pending home
sales for November, weekly jobless claims for the week ended
December 24 and the Chicago PMI for December are expected in the
New York morning session. The material has been provided by
Instaforex Company - instaforex.com

Euro Steady After Falling To New Lows Against Dollar And Yen

After hitting a fresh decade low of 100.38 against the yen
and near a 1-year low of 1.2889 against the dollar in early
Thursday Asian deals at 7:15 pm ET. The euro is currently worth
1.2920 against the dollar and 100.61 against the yen. The material
has been provided by Instaforex Company - instaforex.com

*South Korea November Current Account Surplus $5.05 Billion

South Korea November Current Account Surplus $5.05 Billion
The material has been provided by Instaforex Company -
instaforex.com

*Indian Rupee Falls To Near 2-week Low Of 53.4450 Against Dollar

Indian Rupee Falls To Near 2-week Low Of 53.4450 Against
Dollar The material has been provided by Instaforex Company -
instaforex.com

Indian Rupee Declines To Near 2-week Low Against Dollar

The Indian rupee fell to near a 2-week low of 53.4450 against
the U.S. dollar in early deals on Thursday. The next downside
target level for the rupee is seen at 54.3. The dollar-rupee pair
ended yesterday's trading at 53.0562. The material has been
provided by Instaforex Company - instaforex.com

South Korea Current Account Surplus $5.05 Billion In November

South Korea posted a current account surplus of $5.05 billion
in November, the Bank of Korea said on Thursday - remaining in the
black for the 21st consecutive month. That follows the October
current account surplus of $4.23 billion and also represents a
one-year high total. The financial account registered a net outflow
of $6.63 billion, up from $4.50 billion in October. The capital
account posted a $0.10 billion surplus. The material has been
provided by Instaforex Company - instaforex.com

Spain's Ibex falls 1.9 Pct, Portugal's Psi 20 up 0.3 Pct, Italy's Ftse Mib falls 0.9 Pct

SPAIN'S IBEX FALLS 1.9 PCT, PORTUGAL'S PSI 20 UP 0.3 PCT,
ITALY'S FTSE MIB FALLS 0.9 PCT The material has been provided by
Instaforex Company - instaforex.com

Us Retail Gasoline Demand Last Week up 7.7 Pct -Mastercard

US RETAIL GASOLINE DEMAND LAST WEEK UP 7.7 PCT -MASTERCARD
The material has been provided by Instaforex Company -
instaforex.com

Bank Of Korea: Will Strive To Stabilize Inflation In 2012

South Korea's central bank said on Thursday that price
stability will be its top priority in 2012. In a yearly policy
statement, the Bank of Korea said that it shall conduct monetary
policy so as to maintain inflation close to the mid-point of the
target. For 2012, the bank aims to keep inflation between 2 and 4
percent. During 2012, the bank will determine the inflation target
for 2013 and after, in consultation with the government. According
to the assessment of BoK, the uptrend in consumer prices will slow,
but the pace of decline in inflation is expected to be modest due
chiefly to the presence of high inflation expectations. Further,
the bank observed that domestic economic growth will recover in the
second half of the year after showing signs of a mild slowdown.
However, downside risks will be large, stemming from sovereign debt
crisis in Europe and uncertainties concerning North Korea. The
material has been provided by Instaforex Company -
instaforex.com

*Singapore Nov. Manufactured Products Prices Up 0.4% On Month Vs. 2.2% In Oct.

Singapore Nov. Manufactured Products Prices Up 0.4% On Month
Vs. 2.2% In Oct. The material has been provided by Instaforex
Company - instaforex.com

Euro Hits Lowest in Nearly Year Against Usd

EURO HITS LOWEST IN NEARLY YEAR AGAINST USD The material has
been provided by Instaforex Company - instaforex.com

*Dollar Slides To 77.76 Against Yen

Dollar Slides To 77.76 Against Yen The material has been
provided by Instaforex Company - instaforex.com

South Korea Industrial Output +5.6% On Year

Industrial output in South Korea jumped 5.6 percent on year
in November, Statistics Korea said on Thursday, rising for the 29th
consecutive month - although it was below forecasts for an increase
of 6.0 percent following the 6.2 percent gain in October. On a
monthly basis, output contracted a seasonally adjusted 0.4 percent
versus expectations for an increase of 0.6 percent. That follows
the downwardly revised contraction of 0.6 percent in October, which
was originally called at -0.5 percent. The index of all industry
production in November fell 1.1 percent on month and added 3.1
percent on year. The Producer's Shipment Index in November went
down 1.1 percent on month but added 3.0 percent on year. The
Producer's Inventory Index added 3.7 percent on month and 18.4
percent on year. The Production Capacity Index gained 0.2 percent
on month and 4.0 percent on year. The Operation Ratio Index went
down 0.8 percent on month and 1.8 percent on year. The
Manufacturing Average Operation Ratio in November was 79.0 percent,
down 0.7 percent on month. The Index of Services shed 0.5 percent
on month and added 2.6 percent on year. The Retail Sales Index fell
0.6 percent on month and gained 0.5 percent on year. The Equipment
Investment Index spiked 7.7 percent on month but fell 3.7 percent
on year in November, while the Domestic Machinery Shipment Index
lost 6.8 percent on year. The value of domestic machinery orders
received jumped 31.5 percent on year in November, while the value
of construction completed at constant prices declined 9.2 percent
on month and 8.6 percent on year. The value of construction orders
received at current prices surged 15.0 percent on year. The
Composite Coincident Index eased 0.2 percent on month in November,
while the Cyclical Component of Composite Coincident Index, which
reflects current economic situations, decreased by 0.6 points from
the previous month. The Composite Leading Index was up 0.2 percent
on month. The 12-month Smoothed Change in Composite Leading Index,
which predicts the turning point in business cycle, was up 0.1
percent on month. The material has been provided by Instaforex
Company - instaforex.com

Singapore Output Price Inflation Eases In November

Singapore's producer price inflation in the manufacturing
sector slowed in November, data released by Statistics Singapore
showed Thursday. The manufactured products price index increased
8.5 percent on an annual basis in November, slower than the 8.8
percent growth seen in October. In September, the rate of growth
was 7.3 percent. Prices of non-oil products moved up 1.9 percent
annually, while prices of food products climbed 5.1 percent. On a
monthly basis, output prices in the manufacturing industry moved up
0.4 percent during the month, following the previous month's 2.2
percent growth. At the same time, domestic supply price inflation
quickened modestly to 11.9 percent in November from 11.6 percent in
October. Month-on-month, domestic supply prices moved up 1.4
percent during the month, after rising 1.8 percent in the previous
month. Separately, the agency said Singapore's import price
inflation increased to 7.5 percent in November from 7.2 percent in
October. Month-on-month, import prices moved up 1 percent during
the month, after rising 1.7 percent in the previous month. Export
prices advanced at a slower rate of 5.1 percent annually in
November than the previous month's 5.4 percent rise. From October,
export prices rose 0.7 percent, the agency said. The material has
been provided by Instaforex Company - instaforex.com

Dollar Edges Down Against Yen

In late Asian deals on Thursday, the US dollar declined
against the Japanese yen. At present, the dollar-yen pair is worth
77.76, compared to yesterday's close of 77.97. On the downside,
77.6 is seen as the next target level for the dollar. The material
has been provided by Instaforex Company - instaforex.com

Dollar Rockets To Highest Since January Versus Euro

The dollar surged to its highest since January versus the
slumping euro on Wednesday, as enthusiasm about Italy's successful
bond auction gave way to concerns about the European banking
sector. The euro weakened after a report in the Financial Times
indicated that Euro zone banks have deposited record amounts of
cash at the European Central Bank last week. Meanwhile, significant
drop in Italian borrowing costs failed to generate much appetite
for stocks. The Italian Treasury sold its maximum target of EUR 9
billion of 179-day bills at a rate of 3.251 percent, half of the
euro-record 6.504 percent paid in the previous auction held on
November 25. The country is set to face another test on Thursday
when it auctions its long-term debt. The dollar jumped to $1.2930
versus the euro, and was threatening to take out its January highs.
A move to $1.2870 would take the dollar to its highest since
October 2010. The dollar also surged higher versus the sterling,
rocketing to $1.5457 from $1.5675, as traders abandoned riskier
assets ahead of the New Year's break. A late morning rally drove
the dollar to Y78 versus the yen. In economic news, the U.K. job
market is set to face its toughest year in two decades next year as
unemployment is forecast to rise further, a think tank reportedly
said Wednesday. Unemployment is forecast to climb to 2.85 million
by the end of 2012 and the jobless rate will rise to 8.8 percent,
the Chartered Institute of Personnel and Development (CIPD) said.
Joblessness is seen peaking at 2.9 million in the first half of
2013. Industrial production in Japan declined a seasonally adjusted
2.6 percent on month in November, the Ministry of Economy, Trade
and Industry said in Wednesday's preliminary reading. The material
has been provided by Instaforex Company - instaforex.com

South Korea Industrial Production +5.6% On Year In November

Industrial production in South Korea climbed 5.6 percent on
year in November, Statistics Korea said on Thursday, rising for the
29th consecutive month. That was below forecasts for an increase of
6.0 percent following the 6.2 percent gain in October. On a monthly
basis, output contracted a seasonally adjusted 0.4 percent versus
expectations for an increase of 0.6 percent. That follows the
downwardly revised contraction of 0.6 percent in October, which was
originally called at -0.5 percent. The material has been provided
by Instaforex Company - instaforex.com

South Korea Current Account Surplus $5.05 Billion

South Korea saw a current account surplus of $5.05 billion in
November, the Bank of Korea said on Thursday - remaining in the
black for the 21st consecutive month. That follows the October
current account surplus of $4.23 billion and also represents a
one-year high total. For the first 11 months of the year, the
current account has a surplus of $24.18 billion, easily surpassing
the central bank's projection of $15.5 billion for all of 2011. The
goods account surplus widened to $4.49 billion from October's $3.55
billion due to favorable exports, notably those of petroleum
products and passenger cars, the bureau said. The services account
registered a $0.36 billion dollar surplus, as the construction
service account surplus increased substantially. The primary income
account surplus narrowed from $0.64 billion in the previous month
to $0.45 billion owing to decreased interest payments. The
secondary income account deficit widened from $0.06 billion in
October to $0.24 billion. The financial account registered a net
outflow of $6.63 billion, up from $4.50 billion in October. Direct
investment recorded a net outflow of $2.08 billion, up from $1.13
billion in October, owing mostly to an increase in outward
investment. Portfolio investment decreased to a net inflow of $0.04
billion, from $3.92 billion in the previous month as, despite the
continued inflows of debt securities investment funds foreign
investors' investment in equity securities shifted to a net
outflow. Financial derivatives posted a net outflow of $0.38
billion. Other investment shifted from a net inflow of $2.78
billion the previous month to a net outflow of $0.35 billion, due
mostly to domestic banks' repayments of their short-term
borrowings. Reserve assets increased by $3.87 billion in November.
The capital account posted a $0.10 billion dollar surplus. The
material has been provided by Instaforex Company -
instaforex.com

Vietnam's GDP Growth Eases In 2011

Vietnam's economy grew at a slower pace in 2011 as measures
taken to curb inflation reduced the level of economic activity.
Gross domestic product advanced 5.89 percent this year, down from
6.78 percent in 2010, the General Statistics Office said Thursday.
But the actual growth rate remains close to the 6 percent
government target. In the fourth quarter, the economy grew 6.1
percent after logging a 6.07 percent rise a quarter ago. Consumer
price inflation stays at an elevated level despite an increase in
borrowing cost. In 2011, inflation surged to 18.6 percent from just
9.2 percent last year. According to official figures, annual
inflation came in at 18.13 percent in December compared to 19.83
percent a month ago. The material has been provided by Instaforex
Company - instaforex.com

Macau Visible Trade Deficit Widens In November

Macau's merchandise trade deficit increased from last year in
November, data released by the Statistics and Census Service showed
Thursday. The merchandise trade deficit increased to MOP 5.58
billion in November from MOP 3.53 billion a year earlier. Export of
goods advanced 14.2 percent annually to MOP 651 million during the
month. Domestic exports rose 16.1 percent, while re-exports
advanced 13.2 percent. At the same time, the value of imports
surged 51.9 percent from last year to MOP 6.23 billion in November.
In the January-November period, the trade balance was a deficit of
MOP 49.81 billion, up from MOP 33.15 billion recorded a year
earlier. Exports decreased 2.8 percent year-on-year in the
eleven-month period, while imports climbed 41.7 percent. The
material has been provided by Instaforex Company -
instaforex.com

Euro Heading Sideways Into New Year; Italian Borrowing Costs Drop

The euro stood practically still versus the dollar on
Wednesday, as traders looked ahead to the new year for clues about
the health of the European system. A significant number of market
players remained away from their desks, extending the Christmas
break on a morning bereft of major economic news from either side
of the Atlantic. Those at work were treated to the results of a
surprisingly successful Italian bond auction. The Italian Treasury
sold its maximum target of EUR 9 billion of 179-day bills at a rate
of 3.251 percent, half of the euro-record 6.504 percent paid in the
previous auction held on November 25. Demand also improved with the
bid-to-cover ratio rising to 1.69 from 1.47. The euro was steady at
$1.3070 versus the dollar, more than a penny from an 11-month low
of $1.2944 set December 14. The single currency weakened slightly
to Y101.540 versus the yen, but was firm at GBP 0.8360 versus the
sterling. The threat of ratings agency downgrades for France and
Germany is looming, but Europe has been eerily quiet for the past
few days, following an unexpected injection of bank liquidity from
the European Central Bank. The ECB last week pumped a record EUR
489.191 billion into the Eurozone financial system in the first
offering of its three-year loans in its latest effort to boost
liquidity. The greater take-up of the long term loans by banks
boosted hopes that a credit crunch in the Eurozone can be avoided.
Further, it was also expected that banks may use these funds to buy
euro area sovereigns bonds. 2012 is shaping up to be a pivotal year
for the euro zone -- some analysts say that competitive imbalances
and the burdens of sovereign debt could splinter the monetary
union. Greek officials insists they will cling to euro zone
membership, and Germany appears increasingly willing to play a role
in keeping its profligate cousins in the loop. In economic news,
the U.K. job market is set to face its toughest year in two decades
next year as unemployment is forecast to rise further, a think tank
reportedly said Wednesday. Unemployment is forecast to climb to
2.85 million by the end of 2012 and the jobless rate will rise to
8.8 percent, the Chartered Institute of Personnel and Development
(CIPD) said. Joblessness is seen peaking at 2.9 million in the
first half of 2013. Industrial production in Japan declined a
seasonally adjusted 2.6 percent on month in November, the Ministry
of Economy, Trade and Industry said in Wednesday's preliminary
reading. The material has been provided by Instaforex Company -
instaforex.com

European Shares Snap Gains, End Lower in Thin Trade

Nasdaq down 0.09 Points, or 0.00 Percent, at 2,625.11 After Market Open

NASDAQ DOWN 0.09 POINTS, OR 0.00 PERCENT, AT 2,625.11 AFTER
MARKET OPEN The material has been provided by Instaforex Company -
instaforex.com

Japan's Pm Noda : to Invest $4.5 Bln in Delhi-Mumbai Industrial Corridor Over Next Five Years

JAPAN'S PM NODA : TO INVEST $4.5 BLN IN DELHI-MUMBAI
INDUSTRIAL CORRIDOR OVER NEXT FIVE YEARS The material has been
provided by Instaforex Company - instaforex.com

Brazil Cbank sees 2012 Overall Budget Deficit Equal to 1.2 Pct of Gdp

BRAZIL CBANK SEES 2012 OVERALL BUDGET DEFICIT EQUAL TO 1.2
PCT OF GDP The material has been provided by Instaforex Company -
instaforex.com

Ecb's Gold Reserves Gains 1 Mln Euros in Week to Dec 23

News Gold and gold receivables held by ECB up by 1 mln euros
to 419.822 bln euros last week-ECB Net foreign exchange reserves in
the Euro system of central banks rose by 22.5 bLn euros to 264 bLn
euros, the ECB said Gold holdings surged because of purchases by
one ECB, consistent with the latest Central Bank Gold Agreement-ECB
added Thecombined balance sheet of the ECB and the 17 national
central banks in the euro zone rose by 239.429 billion euros to a
new all-time high of 2.733 trillion euros. The material has been
provided by Instaforex Company - instaforex.com

Europe's Ftseurofirst 300 Provisionally Ends down 0.6 Pct to 984.91 Points

EUROPE'S FTSEUROFIRST 300 PROVISIONALLY ENDS DOWN 0.6 PCT TO
984.91 POINTS The material has been provided by Instaforex Company
- instaforex.com

India and Japan Agree to $15 Bln Currency Swap Line, up from Previous $3 Bln -- Japanese Official

INDIA AND JAPAN AGREE TO $15 BLN CURRENCY SWAP LINE, UP FROM
PREVIOUS $3 BLN -- JAPANESE OFFICIAL The material has been provided
by Instaforex Company - instaforex.com

Dollar Rockets To Highest Since January Versus Euro

Colombia's Urban Jobless Rate 10.3 Pct in November - Government

COLOMBIA'S URBAN JOBLESS RATE 10.3 PCT IN NOVEMBER -
GOVERNMENT The material has been provided by Instaforex Company -
instaforex.com

Sp 500 up 0.31 Points, or 0.02 Percent, at 1,265.74 After Market Open

SP 500 UP 0.31 POINTS, OR 0.02 PERCENT, AT 1,265.74
AFTER MARKET OPEN The material has been provided by Instaforex
Company - instaforex.com

Imf : Decision Has Been Made About Whether and When Formal Discussions on a Fund-supported Program Will Commence With Hungary

IMF : DECISION HAS BEEN MADE ABOUT WHETHER AND WHEN FORMAL
DISCUSSIONS ON A FUND-SUPPORTED PROGRAM WILL COMMENCE WITH HUNGARY
The material has been provided by Instaforex Company -
instaforex.com

U.s. Chain Store Sales +4.3 Pct in Week ended Dec 24 - Redbook

U.S. CHAIN STORE SALES +4.3 PCT IN WEEK ENDED DEC 24 -
REDBOOK The material has been provided by Instaforex Company -
instaforex.com

U.s. Chain Store Sales -2.4 Pct in December to Date - Redbook

U.S. CHAIN STORE SALES -2.4 PCT IN DECEMBER TO DATE - REDBOOK
The material has been provided by Instaforex Company -
instaforex.com

German State: Nrw Dec Cpi +0.7 Pct M/m, +1.7 Pct Y/y (vs Nov -0.1 Pct M/m, +2.1 Pct Y/y)

GERMAN STATE: NRW DEC CPI +0.7 PCT M/M, +1.7 PCT Y/Y (VS NOV
-0.1 PCT M/M, +2.1 PCT Y/Y) The material has been provided by
Instaforex Company - instaforex.com

Imf : if Hungary Govt interested in Proceeding on Program Discussions, It Should Demonstrate Willingness to Engage on Key

IMF : IF HUNGARY GOVT INTERESTED IN PROCEEDING ON PROGRAM
DISCUSSIONS, IT SHOULD DEMONSTRATE WILLINGNESS TO ENGAGE ON KEY
POLICY ISSUES The material has been provided by Instaforex Company
- instaforex.com

Imf : This Includes Close Consultation on Central Bank Legislation and the Financial Stability Law As Part of the Negotiations

IMF : THIS INCLUDES CLOSE CONSULTATION ON CENTRAL BANK
LEGISLATION AND THE FINANCIAL STABILITY LAW AS PART OF THE
NEGOTIATIONS The material has been provided by Instaforex Company -
instaforex.com

Colombia's National Unemployment Rate 9.2 Pct in November - Government

COLOMBIA'S NATIONAL UNEMPLOYMENT RATE 9.2 PCT IN NOVEMBER -
GOVERNMENT The material has been provided by Instaforex Company -
instaforex.com

Dow Jones up 0.91 Points, or 0.01 Percent, at 12,292.26 After Market Open

DOW JONES UP 0.91 POINTS, OR 0.01 PERCENT, AT 12,292.26 AFTER
MARKET OPEN The material has been provided by Instaforex Company -
instaforex.com

Argentine Tax Revenue in December Rose Between 25 Pct and 28 Pct Year on year - Tax Agency Chief

ARGENTINE TAX REVENUE IN DECEMBER ROSE BETWEEN 25 PCT AND 28
PCT YEAR-ON-YEAR - TAX AGENCY CHIEF The material has been provided
by Instaforex Company - instaforex.com

Euro At 10-year Low Versus Yen, Italian Borrowing Costs Drop

The euro stood practically still versus the dollar on
Wednesday, as traders looked ahead to the new year for clues about
the health of the European system. At the same time, the euro
dropped to its lowest since 2001 versus the yen. A significant
number of market players remained away from their desks, extending
the Christmas break on a morning bereft of major economic news from
either side of the Atlantic. Those at work were treated to the
results of a surprisingly successful Italian bond auction. The
Italian Treasury sold its maximum target of EUR 9 billion of
179-day bills at a rate of 3.251 percent, half of the euro-record
6.504 percent paid in the previous auction held on November 25.
Demand also improved with the bid-to-cover ratio rising to 1.69
from 1.47. The euro was steady at $1.3070 versus the dollar, more
than a penny from an 11-month low of $1.2944 set December 14. The
single currency weakened to Y100.79 versus the yen, but was firm at
GBP 0.8360 versus the sterling. The threat of ratings agency
downgrades for France and Germany is looming, but Europe has been
eerily quiet for the past few days, following an unexpected
injection of bank liquidity from the European Central Bank. The ECB
last week pumped a record EUR 489.191 billion into the Eurozone
financial system in the first offering of its three-year loans in
its latest effort to boost liquidity. The greater take-up of the
long term loans by banks boosted hopes that a credit crunch in the
Eurozone can be avoided. Further, it was also expected that banks
may use these funds to buy euro area sovereigns bonds. 2012 is
shaping up to be a pivotal year for the euro zone -- some analysts
say that competitive imbalances and the burdens of sovereign debt
could splinter the monetary union. Greek officials insists they
will cling to euro zone membership, and Germany appears
increasingly willing to play a role in keeping its profligate
cousins in the loop. In economic news, the U.K. job market is set
to face its toughest year in two decades next year as unemployment
is forecast to rise further, a think tank reportedly said
Wednesday. Unemployment is forecast to climb to 2.85 million by the
end of 2012 and the jobless rate will rise to 8.8 percent, the
Chartered Institute of Personnel and Development (CIPD) said.
Joblessness is seen peaking at 2.9 million in the first half of
2013. Industrial production in Japan declined a seasonally adjusted
2.6 percent on month in November, the Ministry of Economy, Trade
and Industry said in Wednesday's preliminary reading. The material
has been provided by Instaforex Company - instaforex.com