Tag Archives: USD

Global Economy and the Financial System on the Cliff’s Edge?

11 Mar

The illusion of economic stability convinced most people that the great economic crisis of 2008 was exceeded. The truth is that it’s just beginning, and the next wave of crisis is very close. Europe is experiencing economic depression and is only a matter of time before the U.S. will follow.

Unemployment rate at high alert

20120731_EUYouthUnemployment_0Published last Friday, this index shows a new historic high in the euro area unemployment rate: 11.9%. In Italy it rose to peak last 21 years, while in Greece reached 27%. More worrying is the unemployment rate among young people under 25 years: in Greece and Spain is close to 60% and in Italy and Portugal is 40%.

Jobs crisis is a direct consequence of the global crisis of 2008 and may generate a political crisis. In general for each unemployed person three people have to suffer. For the euro area the real test is not the debt crisis, but how to avoid the consequences of high unemployment.
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G20 vows to avoid currency war

18 Feb

4exanalysisA single country can win for a while the devaluing commercial advantages. This operation makes imports more expensive and favors the local domestic products. On the other hand, exporters get higher profits when they change back to local currency the international revenue. But this brings prosperity measure only temporary, illusory, when trading partners respond with custom barriers or similar policies to depreciate the currency Continue reading

13 Feb

indexThe yen rallied on Tuesday, reversing the previous day’s late selloff against the dollar and euro after an official with the G7 said it is worried about excess moves in the Japanese currency.

World stock markets edged higher and the Dow Industrials climbed within striking distance of an all-time high as investors looked ahead to President Barack Obama’s State of the Union address on Tuesday evening.

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Debt limit extension bill passes House

24 Jan

images(Reuters) – The House of Representatives on Wednesday passed a Republican plan to allow the federal government to keep borrowing money through mid-May, clearing it for fast enactment after the top Senate Democrat and White House endorsed it.

The vote in the Republican-controlled House was 285-144, with no votes coming from 33 Republicans and 111 Democrats. Continue reading

Areas of the U.S. economy starting to resemble pre-financial crisis period

17 Jan

Real estate market and work beyond the most optimistic expectations

Applications for financial aid from the state for those who lose their jobs reached 335,000 last week, a minimum 5 years. This is a remarkable development that could signal a strengthening U.S. labor market expansion. Part of surprise might have been due to technical issues related to the seasonal adjustments, but it’s pretty clear that if further reports will be below 340-350 thousand, we are dealing with a marked improvement. New construction reached an annualized rate of 0.95 million units, also partially explained by autonomous factors such as warmer weather. Growth was strong in all four regions and confidence is at the best level since April 2006. In fact the U.S. economy offers a more constructive, and lower chances QE program to be pushed far into the future. The consequences were immediate in markets, the dollar unable to ignore positive U.S. macroeconomic trend. Gold recorded acute fall, but began to recover later. Initial trend seems to be broken, receiving help from weaker Philly manufacturing index. But today’s figures are likely to persist for some time and can pose problems in the future for Euro and Gold.

Unemployment claimsSource: forexfactory.com

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