The euro continues weakening with news of the weekend of rescue in Spain, which the announcements of fusion of boxes. The downward pressure was accentuated by an unfortunate IMF report, which suggested that the Spanish recovery was extremely weak, and that the labor market was “dysfunctional.” The euro declined to below the level of support key to 1.2440, and again soon to levels last Thursday. The liquidity was a problem in some European centers, but also the direction of the levy was clear.
However, not all was bad news. The Australian dollar was saved from collapse by the sharp rise in the price of gold toward the $1,200. In the face of macro data, sales of houses of second-hand were better than expected with an increase of 7.7 percent a month, although analysts point out that April was the last month of the tax exemptions from the government of Obama (here surely arise rush to buy). The index of Fed activity of Chicago also improved over the last month, with a reading of 0.29 from 0.13 prior, revised upwards. In the United Kingdom, a member of the Bank of England Posen was pessimistic about the economic recovery British. He warned that the deflation English should not be ruled out, and that the measures of relaxation quantitative hardly lead to a surge in inflation. Posen prefers shooting inflation 1% than to risk falling into deflation.
In Asia, the meeting was mixed by the risk aversion and with the majority of foreign exchange risk blocked. The Kiwi received a small joy by Fonterra, the giant of the milk of New Zealand, had gone up his remuneration with a view to be extended if overall prices and the exchange rates are maintained.
However, even here came the bad news. The markets also paid the consequences of North Korea, which prepares its machinery of war. Equities in South Korea pushed to the low to the Asian bags, and the currency risk they accompanied the low, although at a slow pace and continuous.
With regard to the data, the Swiss consumption and unemployment Swedish populated the European agenda, accompanied by the second reading of British GDP. The round was completed by the industrial orders of the euro. For today in the U.S. expected the housing prices of S&P/Case-Shiller, the consumer confidence, the price index of the housing and the index of the Fed Richmond