The Canadian labor market weakened further in February as the economy shed another 82.6K jobs during the month, which raised the annual rate of unemployment to a six-year high of 7.7% from 7.2% in January. The breakdown of the report showed that full-time positions plunged another 110.9K during the month after falling 113.9K in January.
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Fundamental Headlines[/B][/U]
[I]• GM Won’t Need $2 Billion Aid for Now[/I] – Wall Street Journal
[I]• Lawmakers Focus on Executive Pay [/I]– Wall Street Journal
[I]• China prepares new stimulus measures [/I]– Financial Times
[I]• G-20 Shifts Regulation Focus as Economy Struggles[/I] – Bloomberg
[I]• AIG Asked Buffett for Help Twice Before Its September Collapse[/I] – Bloomberg
[B]USDCAD[/B] – The Canadian labor market weakened further in February as the economy shed another 82.6K jobs during the month, which raised the annual rate of unemployment to a six-year high of 7.7% from 7.2% in January. The breakdown of the report showed that full-time positions plunged another 110.9K during the month after falling 113.9K in January, while a rise of 28.3K in part-time jobs helped to counterbalance the drop in full-time employment. As the labor market deteriorates at a record pace, the BoC is likely to adopt a zero interest rate policy over the near-term in an effort to steer the economy out of a deepening downturn, and may take up unconventional policy tools to stimulate the economy as the region faces its first recession in over a decade. Discuss the topic and your trade ideas in the USD/CAD Forum.
[B]EURUSD[/B] – Retail spending in the Euro-Zone rose 0.1% in January amid expectations for a 0.2% increase, while the previous month’s reading was revised lower to -0.3% from an initial reading of 0.0%. In addition, the annualize reading for private spending fell 2.2% from one year earlier, and consumers are likely to cut back on spending further over the coming months as the labor market deteriorates. Furthermore, a separate report showed that the German wholesale price index fell another 0.1% in February, after posting a 0.4% decline in the previous month, which reinforces the European Central Bank’s dour outlook for price growth, while the annualized figure slipped -5.7% from the previous year, and as price pressures continue to falter, the ECB is likely to ease policy further as price growth falls well below the 2% target for inflation. Discuss the topic and your trade ideas in the EUR/USD Forum.
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CHFUSD[/B] – Producer and import prices in Switzerland fell for the seventh month in February as energy costs slipped lower and the global economic slumped worsened. The headline reading showed a 0.6% drop during the month, which was followed by a 0.8% decline in January, while the annual rate of inflation slipped to -1.8% from -0.9% in previous month, which was the lowest reading in at least seven-years. As the outlook for growth and inflation remain bleak, the Swiss National Bank cut its main interest rate close to zero earlier this week to jump-start the economy, and started buying foreign currencies to stem the appreciation in the exchange rate as the recession deepens and the risks for deflation intensify. For more news and resources, visit the new Swiss franc Currency Room.