Forex Blog

April 1, 2011

Sterling Declines as Manufacturing Growth Slows

Sterling lost ground to the euro and the dollar today on news that the Markit/CIPS purchasing managers’ index measuring manufacturing growth declined to a reading of 57.1 in March compared to a revised reading of 60.9 last month. A reading above 50 means the manufacturing sector is experiencing growth.

The mini-boom in UK manufacturing ran out of steam during March as faltering domestic consumer confidence, inflationary pressure and supply chain disruption combined to slow down expansion,” said David Noble, chief executive of CIPS. “Hopes that the UK economy might start to rebalance towards manufacturing seem to be withering on the vine,” he added.

Source: BBC News

US Adds 216,000 Jobs in March

The Non-Farm Payroll showed an increase of 216,000 jobs in March and was even more optimistic than Wednesday’s ADP report of a 201,000 increase. The official unemployment rate fell by one tenth to a two-year low of 8.8 percent.

The private sector accounted for all the new jobs in March, adding 230,000 positions after February’s 240,000 increase. Government employment fell 14,000, declining for a fifth straight month as local governments let go 15,000 workers.

“Employment gains have been modest in recent months, so in that sense I think businesses that were initially very wary of taking on permanent full-time employees are feeling more confident now than was case some months ago,” said Richard DeKaser, an economist at Parthenon Group in Boston. “As a result they are more willing to make those kinds of long-term commitments.”

Source: Reuters

June 29, 2010

Japan’s Unemployment on the Rise, Spending Decreases

Analysts were caught off guard today on news that Japan’s unemployment rose to 5.2 percent in May from 5.1 percent the previous month. It was expected that unemployment would actually fall slightly to 5.0 percent in May.

Household spending fell 0.7 percent in May when compared to May 2009. Again, this was a surprise as the forecast called for a 0.4 percent increase year-over-year.

“Today’s reports show Japan’s economy is clearly slowing down” after growing at an annual 5 percent pace in the first quarter, said Kyohei Morita, chief Japan economist at Barclays Capital in Tokyo. “Consumer spending is weakening because the impact from government stimulus measures is fading.”

Source: Bloomberg

November 6, 2009

Gold Breaks $1,100

Gold broke through the $1,100 an ounce barrier today on news that Sri Lanka is the latest country to sell part of its US dollar holdings in order to buy gold. The announcement comes just days after India bought nearly $7 billion in gold.

November 3, 2009

Gold Hits New Record

Gold hit a new record of $1,085.07 an ounce today on news that the International Monetary Fund had completed a massive sale of gold to India. The transaction was for 200 tonnes at a price averaging $1,045 an ounce and represented about half of the amount of its reserves the IMF planned to sell.

Yahoo News

Gold Hits New Record

Gold hit a new record of $1,085.07 an ounce today on news that the International Monetary Fund had completed a massive sale of gold to India. The transaction was for 200 tonnes at a price averaging $1,045 an ounce and represented about half of the amount of its reserves the IMF planned to sell.

Yahoo News

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