Government see increase in the number of unemployed young people

Posted on Thursday, August 18th, 2011 at 10:43 am in Market View by superadmin.

Top News for Today

A level results are due to be released for all students in the UK will reveal the effects of the secondary education uptake for the year to come. The government are getting ready to see if there will be an increase in the number of unemployed young people about to claim unemployment benefits and how much of an impact this will have against Universities offering fewer places to more applicants and coupled with a tuition fee increase.
US core CPI and unemployment figures should give a more detailed figure of the scale and effects of inflation on the US grass roots economy
US existing homes sales are expected to exceed 4.77M forecast to reach a predicted 4.91M level

ELSEWHERE

Consumer prices in general came through on par for the Eurozone, however the core price index did should a fractional drop below the expected 1.7% increase
The majority of focus was on the notion of Eurobonds and their uses in controlling the contagion affect across the Eurozone. Whilst EUR/USD traded within a relatively narrow range (1.43809 – 1.4452) the market remains uncertain, and the ban on short selling has done to curb the drop off broadly across the European exchanges.
The USD dropped considerably against sterling to reach a floor at 1.65536, prompting the view that risk had returned slightly to the market place, and that the UK was still the market of choice for credit and debt derivate contracts
Although the CHF lost ground against GBP, it has been conclude that the SNB has been unsuccessful in curbing its significant strengthening, and there was no talk whatsoever of a currency peg, which had been on the cards earlier in the week

IN THE UK

The Bank of England’s Monetary Policy Committee votes unanimously to hold interest rates at record lows
One of the MPC’s members, Adam Posen, as usual votes in favour of an increase to the asset purchasing facility; and the potential of further Quantitative Easing remains given the sustained level of inflation
Average earnings in the UK rise for 2.3% to 2.6%, which both beats the previous month’s and exceed expectations. This does not account for the increase in unemployed graduate numbers, which is visible through and increase in the UK unemployment count
Sterling shows a highly reactionary move; with a full cent change over the course of the European sessions. GBP moved from 1.1350 to 1.1450 over the course of the afternoon, despite European decision makers showing unity over the route the EU must take to reform its financial and debt policies

Key Support and Resistance Levels
	Support			Resistance
GBPUSD	1.6320	1.6370	1.6420	1.6480	1.6550	1.6600
GBPEUR	1.1233	1.1279	1.1346	1.1462	1.1500	1.1568
EURUSD	1.4315	1.4350	1.4375	1.4425	1.4475	1.4400