Germany up to limit it will put in bailout fund

Posted on Thursday, August 25th, 2011 at 11:34 am in Market View by superadmin.

Worldwide currency information

UK CBI Realised Sales expected to show a figure of -10 against a previous month’s figure of -5.
Bank of England policymaker Martin Weale speaks at 12.00pm.
US Unemployment Claims due to be released at 1.30pm and to post a forecasted figure of 403K against Junes reading of 408K.

ELSEWHERE

German IFO data missed expectations heavily posting a figure of 108.7 against a forecast figure of 111.2, the second consecutive piece of data to miss forecasts. This is the strongest decline since the fall of Lehman Brothers and suggests that the German economy is facing a difficult H2 2011.
Eurozone’s Industrial New Orders, month on month data misses expectations massively posting a figure of -0.7% against a forecast figure of 0.6%.
US Core Durable Goods (excludes transportation costs) month on month, beats expectations posting a figure of 0.7% against a figure forecasted of -0.3%.
US Durable Goods Orders, month on month beats expectations posting a figure of 4% against a forecasted rate of 2.1%.
Rumours now circulating that Jackson Hole meeting tomorrow might not be where new US measures are revealed, possibly meaning all the fuss is for nothing. However most experts for the time being are expecting some policy changes to be made.
German President has said that Germany is nearing its limit on the amount it will throw at the bailout fund. If the debt crisis continues to worsen if the Germans make a stand there simply won’t be enough money in the pot to continue the bailouts.

IN THE UK

Sterling slides against the US dollar and Euro during afternoon trading posting lows of €1.1372 and $1.6416.
The UK released no significant data yesterday, as heads now turn towards Friday’s release of Q2 GDP figure.
Despite losing out yesterday, sterling is still considered to be a safer investment opportunity over the US Dollar, and their debt issues.
UK and Swiss Governments agree a deal that means that UK residents with undeclared savings in Swiss bank accounts could now be subjected to tax, could raise as much as £5bn in revenue.
Surprising the markets this morning, Nationwide Consumer Confidence was slightly better than expected at 49, however the figure was lower than last months and sterling is posting losses against most currencies this morning.

Key Support and Resistance Levels
	Support			Resistance
GBPUSD	1.6143	1.6253	1.6313	1.6483	1.6593	1.6653
GBPEUR	1.1201	1.1272	1.1315	1.1429	1.1500	1.1543
EURUSD	1.4262	1.4319	1.4337	1.4470	1.4527	1.4574