What’s Happening With Currencies – November 29, 2011
Risk sentiment has returned, helping major currencies to gain for the second straight day against the greenback. Although there may still be some lingering effects from yesterday’s Black Friday’s results, a majority of today’s rise is being supported by news of Eurozone conference and a credit upgrade by Fitch. The announcements are helping to keep the Euro stable at around 1.3326 in the New York morning. Meanwhile, both commodity dollars, the NZD and AUD, are considerably higher – trading on gains of over 1%.
1. Fitch ratings agency upgraded Australia’s credit rating to AAA, from AA+. Citing a fluid government and low debt to GDP ratios, the global credit agency remains supportive of the country’s current economic environment.
2. Sweden expanded more than estimated in the third quarter, following a surge in exports for the period. Quarter over quarter, the economy expanded by 1.6%, brining the annualized figure higher to over 4%.
3. Eurozone leaders are convening in Brussels today, in an effort to make potential revisions to the current rescue plan – and halt market speculation of a Eurozone break up. Debate over Eurobond issues and the expansion of ECB responsibilities are still continuing.
4. US consumer confidence rose by the most since 2003 as labor market conditions improved ahead of the US holiday season. According to the Conference Board, consumer confidence rose to a reading of 56 in the month of November. The figure advances above forecasts and the October 40.9 print.
5. Nationwide Building Society reported that UK housing prices remained stable compared to last month’s readings. In November, housing prices rose by 0.4%, duplicating the 0.4% gain in October. The report results confirm the rise in mortgage approvals released this morning.
6. Japanese retail sales jumped in the month of October according the Ministry. For the month, sales jumped by 1.9% year over year – reversing a 1.1% decline in September.
7. The European Commission’s Economic Sentiment Indicator showed that both business and consumer sentiment continued to suffer in November. Headline figures dropped to a reading of 93.7 from last month’s 94.8.