FOREXYARD: Forex News Blog | |
- American Jobs Report Deals Devastating Blow
- British PPI Data above Forecasts
- Italian Industrial Production Declined in June
| American Jobs Report Deals Devastating Blow Posted: 08 Jul 2011 06:26 AM PDT
The release of today's Non-Farm Payroll (NFP) data from the US Bureau of Labor Statistics dealt a devastating blow to optimistic hopes for global growth. While ADP's figure yesterday revealed a sharp uptick in private sector employment, today's NFP report, coupled with an increase to the national unemployment rate to 9.2%, bodes ill for an economy struggling with its own structural deficits. The NFP employment data was only the latest in a string of bearish reports. While it revealed the American economy had added 18,000 jobs this past month, it was significantly lower than forecasts for an addition of 97,000 jobs. The news has driven many traders into a risk averse mentality, driving safe haven investments higher ahead of the weekend. President Barack Obama also commented this week that lawmakers in Congress still had not reached agreement for lifting the debt ceiling before the August 4 deadline. Growing concern that the US may default on its loans has done little to help the risk sensitive trading environment present in the market this summer. Read more forex trading news on our forex blog. |
| British PPI Data above Forecasts Posted: 08 Jul 2011 06:23 AM PDT
The Producer Price Index (PPI) input and output figures from Great Britain today signaled solid inflationary growth in the northerly isles. Following this week's interest rate hikes in China and the euro zone, Britain's heightened inflationary expansion does not seem out of tune with the rest of the world. So far the news has spurned a buy-in on the British pound (GBP), though traders were reluctant to expose themselves to heavy doses of regional risk taking considering the downturn in American employment and concern of debt contagion spreading from Greece to Portugal, Spain, and Italy. Read more forex trading news on our forex blog. |
| Italian Industrial Production Declined in June Posted: 08 Jul 2011 06:16 AM PDT
Many analysts were expecting a shortfall in Italian industrial production this month, only the size of the decline was underestimated. Forecasts were for a slump of 0.2%, but the actual figure revealed a 0.6% decline. Italy's decline, however, may prove more ominous. Several economists are viewing the country's industrial output report as a sign that debt contagion from Greece is spreading through the region, affecting demand and growth. Portugal's recent downgrade and Italy's worsening economic data are both symptoms of a larger problem in the euro zone. Read more forex trading news on our forex blog. |
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