Forget that strong October jobs report. It wasn’t strong enough to convince Ben Bernanke to slow the Federal Reserve’s stimulus program.
The latest data show the economy added an average of 200,000 jobs each of the last three months — marking a sudden breakout for the labor market after months of weaker reports.
Immediately after the October report was released, Fed watchers started speculating that it may just be the good news the Fed has been waiting for: Would the Fed start winding down its stimulus program at its next meeting in December? Now, it doesn’t sound like it. In a speech Tuesday evening, Bernanke characterized that data as “somewhat disappointing.”
The post Bernanke not Happy with Jobs Data appeared first on MarketPulse.
West Texas Intermediate crude fell to the lowest level in three months on estimates that crude stockpiles climbed in the U.S., the world’s biggest oil-consuming country.
Prices dropped as much as 2.1 percent. The Energy Information Administration will probably say today that supplies climbed by 3 million barrels last week in a fifth consecutive increase, according to a Bloomberg survey. The industry-funded American Petroleum Institute reported a 3 million-barrel gain yesterday. WTI’s discount to Brent widened to a six-month high.
The post Oil Falls On Higher Supply Forecast appeared first on MarketPulse.
The yen fell against all of its 16 major peers after Japan posted a bigger-than-estimated trade deficit and gains in stocks reduced demand for haven assets.
Japan’s currency weakened as Bank of Japan Governor Haruhiko Kuroda pledged to continue easing to achieve stable inflation. The dollar traded near the weakest since February against major counterparts before data forecast to show U.S. unemployment held above the threshold for the Federal Reserve to start tapering stimulus. The 17-nation euro was 0.2 percent from the strongest in more than eight months ahead of a report this week which may show the region’s consumer confidence was the highest since July 2011.
“The yen is probably leading the way as far as losses versus the dollar are concerned,” said Sacha Tihanyi, a senior currency strategist at Scotiabank in Hong Kong. “Equities are doing a bit better. We haven’t seen a turn in the trade balance, which is a little bit concerning.”
The post USD/JPY at 98 after Bigger Than Estimated Trade Deficit appeared first on MarketPulse.
The economic cost of the U.S. government shutdown will keep the U.S. dollar under pressure this week, while the hit on business and consumer confidence could force the Federal Reserve to delay the withdrawal of stimulus until next year, according to CNBC’s latest market survey of currency traders, analysts and strategists.
Many forecast the U.S. dollar index, which measures the greenback’s value against a basket of currencies, to fall to fresh multi-month lows, possibly breaching 79.00. The index was at 79.63 on Monday.
“The dollar has traded very poorly on the back of the debt ceiling resolution against the Japanese yen, the euro and the Australian dollar,” said Jens Nordvig, Global Head of G10 FX Strategy at Nomura.
The post U.S. Shutdown Lingers appeared first on MarketPulse.
China’s gross domestic product (GDP) rose 7.8 percent in the third quarter on year, the National Bureau of Statistics reported on Friday, up from 7.5 percent in the previous three months.
Industrial output for September, released alongside the growth data, came in slightly higher than forecasts, with an increase of 10.2 percent from a year earlier.
Fixed asset investment grew 20.2 percent in the first nine months of 2013 from a year earlier, lower than expectations for growth of 20.3 percent. Retail sales, meantime, were weaker than expected, rising 13.3 percent on year. Analysts had forecast a rise of 13.5 percent.
The post China’s GDP at 7.8% appeared first on MarketPulse.
France’s jobless rate rose further in the last three months of 2012 to its highest since the second quarter of 1999, showing the challenge the government faces as it seeks to make good on a goal to reverse the upward trend by the end of the year.
The rise in unemployment to 10.6 percent is the sixth consecutive quarter of increase in the jobless rate in the euro zone’s second largest economy, which contracted 0.3 percent in the final three months of 2012.
Economists polled by Reuters forecast an even bleaker picture in the months to come, with unemployment seen hitting an all-time high of 11.3 percent by the start of 2014.
The headline figure, based on the measurement criteria of the International Labour Organisation (ILO), was up 0.3 percentage points from the third quarter. It includes unemployment in mainland France and overseas territories.
The unemployment for mainland France alone was 10.2 percent.
Get OANDA’s exclusive weekly Market Pulse FX
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.