Archive | 8:40 pm

Consumer Confidence in U.S. Falls

29 Jan

Consumer-ConfidenceU.S. consumer confidence dropped in January to its lowest level in more than a year as Americans were more pessimistic about the economic outlook and their financial prospects, according to a private sector report released on Tuesday.

The Conference Board, an industry group, said its index of consumer attitudes fell to 58.6 from an upwardly revised 66.7 in December, falling short of economists’ expectations for 64. It was the lowest level since November 2011.

The January reading was well below the median estimate of 64 in a Bloomberg survey of 73 economists. In fact, every prediction in the survey was higher than the 58.6 reading.

Other sentiment gauges provided by The Conference Board also showed weakness. The number of people claiming business conditions are “good” dropped to 16.7 percent, compared to 17.2 percent in the prior month. At the same time, those saying business conditions are “bad” increased to 27.4 percent from 26.3 percent.

Labor market conditions are also weighing on consumers. People saying jobs are “plentiful” declined to 8.6 percent, compared to 10.8 percent. Those claiming jobs are “hard to get” increased to 37.7 percent from 36.1 percent. Those anticipating more jobs in the coming months fell from 17.9 percent to 14.3 percent.

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How Do You Trade An Approaching Currency War?

29 Jan

By Tyler Yell, Trading Instructor at DailyFX

Article Summary: There is discussion about a possible run of major Central Banks to fight to debase their currencies and bolster their economy to new heights in 2013. This currency war has been seen with the Japanese Yen (JPY) of late and the Swiss Franc (CHF) since 2011. This fundamental story could lead to many more technical breakout trades in 2013 if the Currency War launches and the Yen’s big moves may be just the beginning. Continue reading

India Lowers Benchmark Interest Rate by 0.25%

29 Jan

Shedding its 9-month long hawkish monetary policy stance, the Reserve Bank today slashed its key interest rates by 0.25 per cent and released Rs 18,000 crore additional liquidity into the system to perk up growth through reduced cost of borrowing. RBI Governor D Subbarao in the third quarter monetary policy review surprised the market by cutting short-term lending rate called repo by 0.25 per cent to 7.75 per cent and Cash Reserve Ratio (CRR) by similar margin to 4 per cent, releasing Rs 18,000 crore primary liquidity into the system. Continue reading

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