In the beginning of the session, the European Indexes showed some gains but suffered severe interference after the news about the decision of the Swiss National Bank’s. The abandonment of the connection to the Euro by the Bank of Switzerland certainly was the event of the day. The European currency is in sharp decline and has already negotiated below $ 1.16, a minimum since November 2003, reflecting the unexpected decision of the Swiss National Bank, which came down the interest on deposits to -0.75% and left the minimum goal exchange rate of 1.20 euros on the Swiss franc. The Swiss currency’s is shooting 16% against the euro. Volatility continue to be a hallmark on the European sessions. The oil sector can recover some of the recent losses but remain a major source of volatility. Sustainable rising oil will only be possible when materialize one of two conditions: a minor imbalance between supply and demand or a decline of the dollar against major currencies.
US markets negotiate lower, reacting not only to the World Bank forecasts (described in the previous article), as some surprising economic data.
Retail sales suffered an unexpected break in December and fell 0.90%, contrary to predictions of an increase of 0.10%. To these negative data adds to the downward revision of November variation of this indicator 0.70% to 0.40%. The economic recovery that began in 2010 sinned, until a few months ago, as the containment of consumption, accounts for about 70% of the GDP. However in late summer, with the recovery of the labor market, the decline in credit interest rates to housing and the decline in fuel prices, consumption gained greater vitality, which is now questioned by the data of retail sales. The Fed’s Beige Book described an economy to grow at rates between modest and moderate. The Central Bank explained that the oil drop has had different impacts on the US economy. While the Detroit area benefited from higher demand for automobiles, in some states such as Texas and North Dakota the oil drop has had a strong industrial and social impact.
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