IMF Warns of Global Slowdown

25-01-2012

Yesterday wasn’t the day to be overly optimistic about the global markets, if we put in faith in the belief of the IMF, which predicts that the global economy will expand by 3.3% in 2012, down 0.5% from the previous year. The IMF has also stated that the Euro Zone economy could decline by as much as 4% and experience at least a mild recession. Greece is expected to default in the next few weeks, with Spain and Italy also in the dog house, with an expected contraction of 1.7% and 2.2% this year. The IMF remains adamant that global growth will slow in 2012 but that markets will remain intact.

Oil under 100 USD

Oil is trading at under 100 USD this morning as rising U.S. reserves offset the increased demand for fuel in the country. The demand for oil in America has increased by 1.3% over the last week. The Iranian threat to block the Strait of Hormuz has not caused the price per barrel of oil to rise exponentially. Oil is up slightly this morning by 0.08% and trading at 99.03 USD per barrel. Brent oil is up by 0.14% and trading at 110.44.

Asian stocks on the rise

The Asian markets produced a strong showing in Asian trading, due mainly to the decreased value of the Yen and Apple’s record breaking profits, both of which are positive for Japanese exporters. The MSCI Asia Pacific Index rose by 0.9 percent to 121.59 in the early morning. Honda and Sony were the big winners, with stocks increasing by 3.8 and 4.8 respectively. The EUR/JPY is up in trading so far by 0.315%, currently at 101.56. The USD/JPY is up as well, trading at 77.93, an increase of 0.337%.

FOMC press conference

The Chairman of the Federal Reserve is scheduled to speak today in the United Sates. Historically, this type of press conference has always impacted the markets considerably. In the UK today, the CPI quarterly and the MPC Meeting Minutes will be made available. Tomorrow will be an interesting day in the U.S., with the Cord Durable Goods Orders monthly, the Unemployment Claims and the New Home Sales scheduled for release.

Canada looking east

Canadian Prime Minister Stephen Harper is scheduled to meet Chinese President Hu Jintao next month in order to discuss the Northern Gateway pipeline project. The proposal could allow oil from Canada into Asia in vast quantities. The move comes after U.S. President Barak Obama rejected the controversial Keystone Pipeline project that would have dramatically reduced the country’s reliance on unstable sources of foreign oil. The USD/CAD is up this morning, trading at 1.0111.

Trends Reverse…Slightly 17-05-2012

The Euro is up slightly against the greenback during early European trading on Thursday, but remains far below levels from two weeks ago. The EUR/USD is up 0.18% and trading at 1.2739 this morning, rebounding from a 0.10% decline during yesterday’s trading in the United States that saw the pair close the session at 1.2717. The Dollar is [...]

The Collapse of Oil Prices Continues 16-05-2012

Early trading on Wednesday saw a continuing trend of investor concern towards the Greek political crisis and a rush to the greenback. With the chance of Greece leaving the Eurozone more likely with each passing day, the Euro continues to struggle against the Dollar. The EUR/USD is down 0.11% in early European trading this morning, at [...]

European Uncertainty 15-05-2012

The U.S. Dollar was up against most major currencies on Monday, as investor uncertainty regarding the Greek political crisis continued to push investors towards the safe haven of the greenback. The Euro is up slightly at the beginning of the European trading session on Tuesday by 0.05%, sitting at 1.2828. The Euro has declines sharply [...]

Euro Falls Once Again 14-05-2012

Political uncertainty in Greece and mass protests in Spain has pushed the EUR/USD down 0.15% to 1.2897 during late Asian trading on Monday. In fact, the greenback was either steady or up against most major currencies as traders searched for a temporary safe haven in order to dodge uncertainty in the markets. The increased value of the [...]

Time Is Ticking For Greece 11-05-2012

The Euro is back on the decline during Asian trading on Friday, with the EUR/USD down 0.14% and trading at 1.2920. The pair continues to hover at around 1.3000 after the single currency took a major hit due to fears surrounding political instability in Greece and future fiscal policy in France. The pound is also down against the greenback [...]

Euro Declines Stop 10-05-2012

The Euro has rebounded slightly against the USD during Asian trading on Thursday after posting huge losses over the last several days. The EUR/USD is up 0.15% and trading at 1.2946. The majority of major currencies are also up against the greenback this morning, including the Pound, Swiss Franc and Australian Dollar. The Aussie posted [...]

Euro Decline Continues 09-05-2012

The beginning of trading on Wednesday continued the negative trend of the Euro and oil. The Euro continues to decline sharply, down 0.24% and trading at 1.2975. The EUR/USD broke through the 1.3000 barrier earlier this week after European elections in France and Greece cast a shadow over the future of the single currency. The Euro is also [...]

Declines Continue for Oil and Euro 08-05-2012

The Euro is down once again during late Asian trading on Monday, after suffering huge losses yesterday. The EUR/USD is down 0.15% and trading at 1.3032. The single currency did manage to recover somewhat during late trading yesterday, rebounding from a decline of 0.81% at the end of the Asian trading session. Investors continue to show [...]

Future of the Euro in Doubt? 07-05-2012

Two key election results in the European Union are threatening to undo the single currency. Francois Hollande is the new president of France, after defeating Nicolas Sarkozy by a small margin in the second round of elections. Hollande is the first socialist president in France in the last seventeen years. Many voters in France expressed [...]

Oil Prices Plummet 04-05-2012

Oil prices plummeted during the U.S. trading session on Thursday after European Central Bank President Mario Draghi expressed concern over future growth of the EU economy. The price of crude was down 2.48% and trading at 102.61 USD per barrel. Oil was also hit hard because Draghi claimed that ECB was not planning to increase liquidity in [...]

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