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Dollar Little Changed At The Start Of The New Trading Week


The dollar is little changed in comparison to its major competitors on Monday. The initial concerns sparked by the weekend announcement that Mario Monti will resign after Italy's 2013 budget is approved have eased as the session has progressed. President Barack Obama and House Speaker John Boehner also met at the White House on Sunday to discuss the ongoing negotiations over the impending fiscal cliff.

Italy's technocratic Prime Minister Mario Monti has decided to resign, after losing support of his predecessor Silvio Berlusconi's PDL party. New elections are likely to take place in February and Berlusconi has indicated that he would run for the premiership.

Greece extended the deadline for the buyback of debt by one day, after initial offers fell short of target last week.

According to a statement from the Public Debt Management Agency (PDMA), the new deadline will be December 11. The invitation will expire on London time 12:00 p.m. on Tuesday. The earlier deadline was on December 7.

Debt buyback was set as precondition by the creditors to approve next tranche of aid as it will lower the nation's huge debt. Eurogroup is widely expected to make a final decision on Greece funding at its next meeting in Brussels on December 13.

The dollar rose to an early high of $1.2885 against the Euro on Monday, but has since eased back to around $1.2935.

Eurozone investor confidence increased for a fourth consecutive month in December, data released by the think-tank Sentix showed Monday. The Sentix Index rose to -16.8 in December from -18.8 in November and -22.2 in October. Economists had forecast an increase in the reading to -16.

Germany's exports rose unexpectedly in October, rebounding from the previous month's drop, on demand from outside Europe, raising hopes of slight economic growth at the end of the year. Exports grew by 0.3 percent in October from September, Destatis reported Monday. Economists had forecast shipments to fall 0.3 percent following last month's 2.4 percent drop.

Imports advanced 2.5 percent month-on-month, offsetting September's 1.4 percent fall. Imports were expected to climb just 0.4 percent. As the import growth outpaced that of exports, the trade surplus fell to EUR 15.8 billion from EUR 16.9 billion in September. The decline was in line with expectations.

Sentiment in the French industrial sector deteriorated in November, after stabilizing in the previous month, results of a monthly survey by the Bank of France showed Monday. The business sentiment indicator in industry fell to 91 from a score of 92 recorded in the previous two months. The decline was in line with expectations.

Industrial production in France declined more than expected in October, a report from statistical office Insee showed Monday. Industrial output dropped 3.6 percent year-on-year in October compared with 2 percent fall in the preceding month.

Industrial production dropped 0.7 percent month-on-month after a 2.7 percent fall in September. This was against expectations for a 0.3 percent gain.

The greenback climbed to an early high of $1.6013 against the pound sterling Monday, but has since fallen to around $1.6070.

U.K. permanent placements increased at the fastest pace for 19 months in November, Report on Jobs published by Recruitment and Employment Confederation and KPMG showed Monday. Temporary billings also grew at a sharper rate, with the pace of expansion the highest since March 2011.

The buck reached an early high of Y82.630 against the Japanese Yen Monday, but has since retreated to around Y82.370.

Japan's economy sank into recession with the gross domestic product contracting for a second straight time in the third quarter, revised estimates from the Cabinet Office showed Monday.

GDP fell an annualized 3.5 percent in the September quarter, in line with preliminary figures. At the same time, the Cabinet Office revised down the estimates for the second quarter to show a 0.1 percent contraction.

The GDP fell 0.9 percent quarter-on-quarter in the third quarter, in line with preliminary estimates.

Japan's consumer confidence declined marginally in November, a survey by the Cabinet Office revealed Monday. The seasonally adjusted consumer confidence index fell to 39.4 in November from 39.7 in October. This was the weakest index reading since December 2011.

by RTTNews Staff Writer

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