Daily Market Review 23 of November
The European economy is on the brink of the weakest quarter from the beginning of 2009. The surveys show that the companies continued to register the reduction of orders. The service companies bore the brunt in November and laid off personnel more than others. Though the monthly rate of decline claimed by the manufacturers turned out to be more moderate than economists had expected. The PMI (purchasing managers index) calculated by Markit, that reflects the economic activity didn’t show any improvement if indices in Europe. The perspectives of 2012 look gloomy against the background of further tough measures. The more so because the international creditors against couldn’t come to any agreement about giving new tranche to Greece. Economists couldn’t come to a conclusion whether the ECB would lower the rate from 0.75% to 0.5%.

CURRENCIES

EUR/USD

Yesterday the Euro grew against the USA Dollar from 1.2825 to 1.2898. The Resistance near the level of 1.2905 couldn’t be crossed by the prices. During the day trading the Euro suddenly was deprived of factors that could influence its growth. At the moment Euro is stuck in the range 1.2718 - 1.2910. The Support is at 1.2670.



GBP/USD

The Pound depreciated against the US Dollar from 1.5977 to 1.5918 with further bounce to 1.5947. The Resistance above is at 1.6050. Analysts assume that the British currency can reach it, if Euro purchases are more firm. The Support at 1.5850 is meanwhile not in danger of being tested.