As it became known today, final 2Q GDP in Great Britain was revised down to +0.1% q/q (+0.6% y/y) against the preliminary +0.2% q/q (+0.7% y/y). 

Article source: http://www.liteforex.org/news/forex/11907

Government agencies, public transportation services and tax offices were closed on Wednesday in a large-scale effort to protest against the austerity measures set to be imposed by the EU/IMF bailout, which was, in its ideal form, set to remedy Greek’s debt problems. Included in the strike were many hospital workers and the staff of several state schools.

In order to receive the proposed bailout, the Greek government committed to implementing ausetiry measures which will include salary cuts and layoffs for thousands of people nationwide. The strike was spearheaded by Greek’s primary labor unions, ADEDY and GSEE, which represent nearly half of the nation’s workforce. In one interview, GSEE spokesman Stathis Anestis expressed his belief that “The new measures are just extending the unfair and barbaric policies which suck dry workers’ rights and revenues and push the economy deeper into recession and debt.” The goal of the strike was not only to bring publicity to force Greek government officials to reconsider their planned austerity measures.

The execution of the bailout was already being questioned in recent days since Greek officials announced that even with strict austerity measures, Greece will not be able to meet the demands placed upon the country as part of the bailout conditions. In the meanwhile, EU officials continue working on plans to increase bank capital to reign in the region’s debt crisis, as Moody’s warned yesterday that it may be issuing future downgrades for European nations as the region’s banks continue to suffer. In Greece specifically, banks are negotiating a bond swap aimed at reducing the nation’s debt, which would cost investors approximately 21%. According to Bloomberg data, Greek 10-year bonds trade for about 39 cents on the euro and two-year notes for about 43 cents.

Article source: http://www.dailyforex.com/forex-news/2011/10/Greeks-Strike-Against-Bailout-Plans/9118

The New Zealand Dollar rate continues trading downward at the Forex currency market on Monday, the currency is still influenced by sellers amid risk aversion.

Forex forecast: MACD indicator for the pair NZD/USD is in the negative area and goes down, giving a sell signal; volumes are rising. Stochastic Oscillator has moved to the oversold zone, still preserving a sell signal.

Forex recommendations: in case of breakdown at the level of 0.7600, the pair will show a correctional movement to 0.7590 and 0.7575.

ANZ Commodities prices in New Zealand totaled -1,3% m/m in September against -1,2% m/m. It is obvious that export-oriented economy is seriously affected by the external background showing a global slump in demand.

This can be proved by observers’ reaction: according to the information released last week, Fitch Ratings downgraded New Zealand to АА from АА+, outlook “stable”. Market’s reaction to the news was immediate: the NZD found itself in a selloff slumping in a downward channel.

According to Fitch economists, current account deficit in 2012 in New Zealand will only widen to 4,9%, in 2013 – to 5,5%. At the same time external debt level exceeds the upper limit for the country’s current rating. These points played the main role in rating downgrade.

As noted by the Finance Ministry of the country, rating agencies pay too much attention to the debt problems, and the uncertainty about the same actions to be taken by other rating agencies preserves.

It became known last week that GDP in New Zealand increased by 0.1% q/q (+1.5% y/y) in Q2 against the level of +0.9% q/q (+1.6% y/y) in Q1.

Therefore, there is actually stagnation in the economy of New Zealand: GDP has almost stopped rising last quarter, which proves that decision of the RBNZ do not change interest rate was logical. The report has disappointed market and currently it is quite possible that regulator will keep interest rates at this level for a long time, at least until the end of spring 2012.

The RBNZ head said the day before that the financing of the country’s banking sector might become a problem in 2012. According to Mr. Bollard, the New Zealand banking system now feels a great deal better than in 2008, but risks from Europe and USA are increasing. Still the NZD is too expensive, in his opinion. 

Article source: http://www.liteforex.org/news/analytics/11819