Tuesday 13 November 2012

Daily Morning Report 13/11/2012


The dollar rose against most major global currencies on Tuesday Asian session.
Mondays Eurogroup meeting ended with Eurozone finance ministers agreeing to extend Greece’s fiscal adjustment period by two years but deciding to put off until next week final decisions on the disbursement of the next Greek bailout tranche and the method to make the country’s debt sustainable. Once approved, the next shot of financial aid will end shorter-term solvency issues for Greece, but the country and creditors must still agree on ways to lower longer-term debt burdens, which dampened spirits.
The dollar also saw support on growing fears the U.S. risks falling into an avoidable recession in 2013. If untreated, the ‘’fiscal cliff’’ could siphon over USD600 billion out of the U.S. economy next year alone in the form of rising taxes and cuts to government spending.
Later Tuesday, the U.S. is to release official data on the federal budget balance. In Europe, the ZEW Centre for Economic Research will release its closely watched report on German economic sentiment, as well as data on sentiment in the wider Eurozone.

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