German Business Confidence Rises to Highest Level in 15 Months; Swiss Employment Rises 0.2%

Fundamental Headlines

• U.S. GDP Growth Revised Lower – Wall Street Journal
• IMF Director: Uncertainty Fuels Risk -Taking – Wall Street Journal
• Divisions Emerge on Stimulus Strategy - Financial Times
• U.S. Economy Grows at 2.8% Rate on Higher Deficit, Lower Consumer Spending Outlook – Bloomberg
• European Industrial Orders Increase for Sixth Month, Exceed Forecasts -Bloomberg

EUR/USD –  German IFO - business climate rose to 93.9 in November from a revised 92.0 the month prior, surpassing economists’ forecasts of a 92.5  to mark the highest reading in 15 months. The improvement came as the current assessment component advanced to 89.1 from a revised 87.4, while expectations rose to 98.9 amid forecasts of 97.3. The improved outlook comes on the heels of a 0.7% rise in 3Q GDP for Europe’s largest economy, ending the worst recession since WWII. The Euro-zone is on the path of recovery as 3rd quarter growth accelerated due to companies replenishing inventories along with rising export orders prompting factories to ramp up production. Meanwhile, industrial new orders beat expectations of 1.0% with a reading of 1.5% in September.

USD/CHF – Swiss employment unexpectedly rose 0.2% in the third quarter from a year earlier amid economists’ expectations of -0.8%, while payrolls climbed to 3.963 million people from 3.945 million, the Federal statistics office in Neuchatel said in a statement today. The data adds signs that private spending may support the economy’s recovery as cash on hand amongst households advance. Adding to the positive  releases from Switzerland, the UBS consumption indicator improved for a consecutive month to .867 in October from a revised .671 the prior period. However, Swiss unemployment surged to 4.1% last month, which is the highest level since April 1998 and may rise to 4.95 in 2010 according to a statement yesterday by the Zurich-based industry group Economiesuisse. Therefore,  the Swiss National Bank may continue to keep interest rates at 0.25% until growth takes hold and inflationary pressure arise.