Thursday 1 November 2012

Daily Afternoon Report 01/11/2012


Euro remains uncertain with doubts still looming about the future of Greece and Spain, the British Pound has still managed to find its way higher following positive statements and releases about the UK. The Euro has dropped over the course of the European session, possibly because of a report that Spain will continue its ban on short selling or maybe because of general pessimism felt in forex news about the Euro over the past few days.
Euro-zone unemployment was also reported today at 11.6% in September, slightly higher than expectations for 11.5% and higher than August’s revised 11.5% unemployment rate. The unemployment is significantly higher than the 10.3% rate in September of 2011, as the Euro debt crisis has placed immense pressure on the Euro-zone economy. The total amount of people looking for work in the Euro-zone now stands at 18.49 million. Germany reported a 5.4% unemployment rate, while Spain had the worst rate of unemployment at 25.8%.
A drop in UK manufacturing has accelerated at a faster pace according to the Purchasing Managers’ Index by Markit Economics. The PMI for manufacturing for October was reported at 47.5, lower than the expected 48 index result and lower than September’s revised 48.1 PMI. A PMI below 50 indicates a drop in manufacturing activity, and October marks the sixth straight month of negative activity.

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