Investor confidence in the Euro-Zone dropped more than expected in March as the Sentix survey slipped to a record-low of -42.7 from -36.1 in February. A deeper look into the report showed that the sub-component for current situations plunged to -59.75 from -52.25, which is the lowest since the survey started in Feb. 2003.
Fundamental Headlines
• Lloyds Grapples With HBOS Mess – Wall Street Journal
• New Fears as Credit Markets Tighten Up – Wall Street Journal
• BofA withdraws job offers to foreign MBAs – Financial Times
• Swiss Re Names Credit Suisse's Kielholz Chairman After Posting Record Loss – Bloomberg
• AIG Warned U.S. Failure Would Cripple World's Banks, Money Funds, Insurers – Bloomberg
EURUSD – Investor confidence in the Euro-Zone dropped more than expected in March as the Sentix survey slipped to a record-low of -42.7 from -36.1 in February. A deeper look into the report showed that the sub-component for current situations plunged to -59.75 from -52.25, which is the lowest since the survey started in Feb. 2003, while the gauge for future expectations fell for the first time in four-months as market participants expect the euro-region to face its worst recession since World War II. The data continues to reinforce a dour outlook for the economy, and as growth and inflation falters, the ECB is likely to step up their efforts in order to avoid a deepening recession. Discuss the topic and your trade ideas in the EUR/USD Forum.
CHFUSD – The unemployment rate in Switzerland increased to 3.1% from a revised reading of 3.0% seasonally adjusted in January as firms across the region continued to slash their labor force in an effort to reduce costs. Fading demands from the home and abroad paired with financial uncertainties have certainly dragged on the Swiss economy, and conditions are likely to get worse as the region heads into its first recession in six years, which could force the SNB to adopt unconventional measures to stimulate the economy as the benchmark interest rate remains close to zero. For more news and resources, visit the new Swiss franc Currency Room.
