Tuesday, October 12, 2010
BP to restructure trading arm amid profit erosion: Oil major BP is restructuring its trading arm to cut costs and focus on growth markets such as China and India to turn around falling profits.
UK inflation rate stays at 3.1%: September's inflation figures mean benefits will rise next April by the CPI's 3।1% - but pensions will increase by the higher 4.6% RPI.
See the reaction of the global currency market at online quotes page.
Monday, October 11, 2010
Friday, September 24, 2010
After its last monetary policy meeting the US federal reserve started talking about a possibility of quantitative easing driving the market high to heaven. Now let us explain what quantitative easing is and find out whether it is good or bad for the US economy and currency market. Quantitative easing is not a complex transaction. The FED exchanges overnight deposits for treasury bonds extending liquidity by pushing private sector savings to the financial markets, i.e. quantitative easing is not just printing money or throwing from a helicopter, it is just an asset exchange transaction, just a swap. It means that when implementing quantitative easing policy, the Federal Reserve pumps money into economy (increasing supply of money) in order to prevent from inflation. Risks include the policy being more effective than expected. That is it, so there is no panic for the market.
Friday, September 3, 2010
According to the US Labor Department, nonfarm payrolls dropped by 54,000 in August, however, analysts anticipated sharper decline. The US jobless rate remains steady at 9.6%. The US dollar sharply dropped shortly after Bureau of Labor Statistics released a report. Employment in private-sector payroll surged by 67,000, - official figures show. For instance, in July 2010 overall payrolls declined by 131,000 and payrolls in private sector rose 71,000.
Average earnings per hour rose by 0.2% or 3 cents to $19.08 while experts had expected 0.1% surge. The average workweek remained unchanged at 34.2 hours.
Friday, August 13, 2010
Wednesday, July 28, 2010
Monday, July 12, 2010
Wednesday, June 30, 2010
Wednesday, June 16, 2010
Tuesday, May 18, 2010
Monday, May 17 Swiss National Bank's Governor Philipp Hildebrand said that euro-zone debt crisis may reflect of economic recovery of Switzerland. Hildebrand mentioned that now price stability is at risk as appreciation of Swiss franc is exaggerated. All time minimum was hit on Monday, when EUR/CHF currency pair dropped to 1,4000 level, unseen previously. On Forex today the pair is in a tight range near 1,4000.
Philipp Hildebrand emphasized the necessity of making European policy stable. The SNB is trying to limit franc`s rise versus the euro. It intervened several times.
In his speech Hildebrand also focused on future of banking industry in the country. He mentioned the situation over UBS and Credit Suisse. The Swiss government decided to bail out UBS bank. According to SNB chief, large banks' investment banking had been a loss-making business for the country.
Wednesday, April 14, 2010
US consumer prices rose 0.1% in March, the US department f Labor delivered today. The Consumer Price Index (CPI) rose 2.3% as compared to March 2009, signaling that the US economy is picking up strongly after the worst recession since World War II. The core index excluding fuel and food showed the same monthly reading signaling a 1.1% surging on yearly adjusted basis. The core CPI rate rose 1.1% from March 2009, after a 1.3% surge the previous month. The gain for the year to March turned out to be the smallest in last 6 years. The result was predicted by economists. 0.1% inflation remains within the frames forecast by the US government.
This spring such retailers as Home Depot and Wal Mart Stores offer a variety of discount programs encouraging retail sales.
CPI is a basic economic indicator measuringchange of retail prices for goods and services including food, clothes, fuel, transport, medical services etc.
Thursday, March 25, 2010
Today the Chairman of the US Federal Reserve Ben Bernanke in his testimony before the Congress emphasized that the US economy still needs low rates, however the FED may tighten policy if necessary to prevent increase in consumer prices. According to Ben Bernanke, the emergency measures will be lifted when the Federal Reserve System finds it necessary. Once the economy becomes strong enough, the Federal Reserve will act. The tools used by FED, will vary depending on how economy recovers.
Extremely low refinancing rate
“Economy still needs support of monetary policy, and work on further lifting of credit stimulus,” – added Bernanke. In terms of financial crisis the FED, US central bank, voted to lower its key interest rate to its record bottom of 0-0.25% in order to provide the necessary monetary conditions for sooner recovery of economy after it was hit by recession. The US federal funds rate remains at its historical low since December 2008.
Besides, Mr. Bernanke repeated that a hike in discount rate – an emergency credit rate – did not mean a broader tightening of credit to companies and households.
In the Forex market the USD fell on Bernanke testimony as EUR/USD currency pair edged higher to 1.3368 level.