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.