New York
London
Hong Kong
Tokyo
Sydney

Unemployment still high for Europe

Share on Tumblr

The British Pound (GBP) is at key levels against the United States dollar (USD) and it is believed that prices can reach new highs with a possible breakout. The reality savings rate is back to 4 percent, the highest level since September 2009, but the step to improve this rate by Europe and Japan has and is expected to slow down the economic activity. This will be felt in the form of banks getting affected by tighter financial regulation.

Factory orders fell from 1.0 percent and 1.7 percent in April and March to 1.4 percent in May. Non-defense aircraft and parts, which moved up 218 percent in April, slumped to almost 30 percent. The only respite thing was investment in equipment and software that improved 12 percent in 2Q10 from the 19 percent in 4Q09. Payroll employment that increased 433,000 in May fell by 125,000 in the month of June. Due to services sector improvements, the rate of unemployment declined instead to 9.5 percent from 9.7 percent. Household spending rose 0.2 percent month-on-month in May with durable good purchases improving 0.8 percent and non-durable good purchases declining 0.9 percent.

The US government is trying hard to get the jobs bill approved by the Senate else more than one million of Americans can finish the unemployment benefits by June end. Moreover, it is expected that uncertainty will remain high and inflation low as the Federal Reserve is assumed to keep rates low for most of 2010.

Forex Blog

  • Agreement To Budget Targets A Must For The European Commission said in a statement recently that Portugal must stick to targets agreed with international lenders if it wants more time to repay bailout loans. The constitutional court of... Read More >
  • Asian Shares And Euro Rise On Draft On Monday, Asian shares and the euro rose after European Union sources revealed the President of Cyprus and the EU have agreed the outlines of a rescue deal to avert financial meltdown on the... Read More >
  • New Law Passed By Greece To Spur The Greek parliament has approved a legislation to boost private investment, a key condition to get the crisis-struck country out of its worst-ever peacetime recession. Read More >
  • Five-Year Plan Outlined By Sherbank To The largest bank of Russia has outlined a plan to investors under which the bank, Sberbank, is planning to enhance efficiency while sustaining profits over a period of five years, according to a... Read More >
  • Winning Streak Of Dow Ends On Friday, Wall Street stocks fell as a drop in JPMorgan Chase led to the end of the 10-day rally of Dow Jones industrial average while the United States dollar retreated from a high of seven months... Read More >