Cut Rates By European Central Bank
The European Central Bank (ECB) might cut rates again this week, as the Euro-zone economy is rapidly loosing momentum and consumes are slumping. The European currency is nonetheless designing a bottom and higher levels are possible, if key resistance lines are overcome.
The Federal Reserve is watching events very closely and is ready to cut rates again, if the economic growth will not pick up substantially over the coming months. The credit crunch crisis is now hitting consumes and more incisive measures are needed to face the challenge at its roots. In October, the personal consumer expenditure (PCE) declined 1.0% month-on-month (-0.2% expected), after sliding 0.3% in September, and receding in August and July as well. Both durable and non-durable orders fell.
The first moved down by 4.0%, which corresponds to the lowest level of the past 25 years. The second slumped instead by 2.5%. Consumes should decline further in the coming months. Household’s wealth is shrinking along with the weak stock market and the tumbling home prices.
Nonetheless, as opposed the US indexes, which appear to have found a bottom near the 2002 lows, home trend remain clearly on the downside for the moment. Inventories are at a plethoric level and buyers are backing off in the hope of better deals. In October new home sales declined 5.3% month-on-month (4.0% expected) after September’s up move of 0.7%. So, stocks rose to 11.1 months of supply at current sales rate from 10.9 months.
The Federal Reserve is watching events very closely and is ready to cut rates again, if the economic growth will not pick up substantially over the coming months. The credit crunch crisis is now hitting consumes and more incisive measures are needed to face the challenge at its roots. In October, the personal consumer expenditure (PCE) declined 1.0% month-on-month (-0.2% expected), after sliding 0.3% in September, and receding in August and July as well. Both durable and non-durable orders fell.
The first moved down by 4.0%, which corresponds to the lowest level of the past 25 years. The second slumped instead by 2.5%. Consumes should decline further in the coming months. Household’s wealth is shrinking along with the weak stock market and the tumbling home prices.
Nonetheless, as opposed the US indexes, which appear to have found a bottom near the 2002 lows, home trend remain clearly on the downside for the moment. Inventories are at a plethoric level and buyers are backing off in the hope of better deals. In October new home sales declined 5.3% month-on-month (4.0% expected) after September’s up move of 0.7%. So, stocks rose to 11.1 months of supply at current sales rate from 10.9 months.
AUDNZD Technical Fundamental
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