http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/http://www.fxstreet.com/fundamental/http://mediaserver.fxstreet.com/images/fxstreet-provider-logo1-en.gif7http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-02-09.htmlThe civilian unemployment rate declined to 8.3% in January from 8.5% in the prior month and is noticeably lower than the year ago reading of 9.1% (see Chart 1). The jobless rate in the Great Recession peaked at 10.0% in October 2009. The elevated unemployment after ten quarters of economic growth remains one of the top concerns of the Fed. Frequently, measures of unemployment different from the headline number are cited to drive home the message that the underlying fundamentals of the laborThu, 09 Feb 2012 22:16:51 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-02-09.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-02-08.htmlPresident John Williams of the San Francisco Federal Reserve Bank, a voting member of the FOMC in 2012, presented his views about the economy and Fed policy today, which contain several important nuggets of information, particularly given the new information from the Fed following the January 24-25 FOMC meeting. He indicated explicitly that he is a 2014 Club member, not a surprise because this information was part of the FOMC policy statement. His remarks touched on several aspects that areWed, 08 Feb 2012 22:15:27 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-02-08.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-02-05.htmlCivilian Unemployment Rate: 8.3% in January, down from 8.5% in December. Cycle high jobless rate for the recent recession is 10.0% registered in October 2009. Payroll Employment: +243,000 jobs in January vs. +203,000 in December. Private sector jobs increased 257,000 after a gain of 220,000 in December. A net gain of 60,000 jobs followed after revisions to payroll estimates of November and December Private Sector Hourly Earnings: $23.24 in January vs. $23.20 in December; 1.9% y-o-y increase inSun, 05 Feb 2012 22:09:25 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-02-05.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-30.htmlReal consumer spending slipped 0.1% in December after postings in October and November. All major components – durable goods (-0.1%), nondurables (-0.1%) and services (-0.1%) – fell in December and trimmed the pace of consumer spending in the fourth quarter. The weakness in consumer outlays on services stands out in the fourth quarter (see Chart 2). Service outlays rose only at an annual rate of 0.2%, while that of goods advanced 5.7%, reflecting a nearly 15% surge in purchases of durables andMon, 30 Jan 2012 22:10:43 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-30.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-26.htmlSales of new single-family homes fell 2.2% to an annual rate of 307,000 in December, putting the annual average at 303,000 units. The tally of sales of new single-family homes in 2011 is the lowest on record (see Chart 1). On a quarterly basis, sales of new homes (see Chart 2) have been nearly flat for 2 years. The median price of a new single-family dropped to $210, 300, down sharply from a year ago. The inventory of unsold single-family homes at a 6.1-month supply mark is close to theThu, 26 Jan 2012 23:08:08 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-26.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-25.htmlThe latest forward guidance from the Fed is that exceptionally low levels of the federal funds rate will prevail at least through late 2014. There was one dissent, with President Lacker of the Richmond Federal Reserve preferring to eliminate the description of the time period over which the federal funds rate would be left unchanged. The Fed changed its expectation about tightening to late-2014 from mid-2013 which has been in place since August 2011. The Fed provided its own forecast of theWed, 25 Jan 2012 23:31:43 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-25.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-24.htmlYesterday's edition of the daily commentary listed three changes the Fed will incorporate in the manner in which it communicates with financial markets as of January 25. We had noted that additional comments about the Fed's balance sheet will be the topic of today's discussion. Picking up from yesterday's note, the Fed has indicated that the narrative will include "qualitative information" about the outlook for the Fed's balance sheet. The market consensus is that these details will be part ofTue, 24 Jan 2012 22:58:29 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-24.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-23.htmlThe Fed's January 24-25 FOM C meeting will mark the introduction of three changes to the Fed's communication strategy. The Fed will present its own forecast of the federal funds rate for the period 2012-2016. The Fed published a template last week illustrating what the forecast will look like when it is published on Wednesday, January 25. Using the Fed's templates, this is an example of how the two new charts would look like, which are additions to the current "Summary of EconomicMon, 23 Jan 2012 22:20:28 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-23.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-22.htmlSales of existing homes rose 4.6% to an annual rate 4.61 million units in December, which takes the annual sales to 4.293 million units. Sales numbers of 2009 and early part of 2010 reflect the impact of the first-time home buyer program. The cycle low for sales of existing homes excluding the swings related to the first-time home buyer program was 3.77 million units for all homes and 3.39 million units for single-family, which occurred in November 2008. With reference to this benchmark, salesSun, 22 Jan 2012 22:16:44 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-22.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-19.htmlThe Consumer Price Index (CPI) held steady in December, after posting a similar reading in November. The energy price index inched down 1.3% in December, marking the third consecutive decline. The recent increase in oil prices should be reflected in the January CPI report. The food price index increased 0.2% in December putting the year-to-year gain at 4.7% vs. 1.5% in all of 2010. The energy price index moved up 6.6% in 2011 compared with a 7.7% jump in 2010. The 3.0% increase in the overallThu, 19 Jan 2012 22:09:42 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-19.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-18.htmlToday’s economic reports present a bullish picture of the U.S economy. Industrial production in December was strong and optimism of homebuilders improved in January, while wholesale prices fell. Industrial production rose 0.4% in December after declining 0.3% during November. The 0.9% jump in factory production, which accounts for the bulk of total industrial production, stands out in today’s report after a 0.4% drop in November. Factory production rose at an annual rate of 3.9% in the fourthWed, 18 Jan 2012 22:26:24 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-18.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-17.htmlOil is trading around $112 a barrel this morning. Putting things in perspective, the price of oil today is higher than the level seen in the 2005-2006 period when the world economy was growing at a faster pace and the economic challenges of 2012 were not on the horizon. There are several factors that will influence the price of oil in 2012. First, geopolitical risks such as the Iran controversy and vulnerabilities in the Middle East could lift oil prices and bear adversely on global economicTue, 17 Jan 2012 22:09:23 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-17.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-15.htmlThe trade deficit of the U.S. widened to $47.75 billion in November from $43.27 billion in the prior month. Nominal exports of goods and services have dropped for two consecutive months, while exports of goods adjusted for fell 1.5% in November after posting gains in each of the two prior months. Imports of goods and services also advanced in November. The October-November data imply that a widening of the trade deficit in the fourth quarter is a negative for GDP growth. The key question isSun, 15 Jan 2012 22:17:29 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-15.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-12.htmlRetail sales rose only 0.1% in December, after a 0.4% jump in November. The strong performance of retail sales in November and December has given a lift to total retail sales in the fourth quarter. It is nearly certain that consumer spending in the fourth quarter (+2.5%, forecast) will exceed that of the third quarter (+1.7%). The key question is a similar momentum will prevail in the quarters ahead. Although retail sales advanced at a rapid clip in the fourth quarter, the year-to-year changeThu, 12 Jan 2012 22:07:17 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-12.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-11.htmlImports of China slowed to a 10.7% year-over-year growth in December 2011 (see Chart 1), the smallest increase since late-2009. Imports of China from Germany, the driver of economic growth in Europe, have posted a significant slowing, with the December increase amounting a paltry 4.2%, the smallest gain since October 2009. The broader implication of these trends is that not only is German business activity hit by a deceleration of imports of China but the intricate web of world trade has aWed, 11 Jan 2012 22:31:18 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-11.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-10.htmlThe Small Business Optimism Index moved up to 93.8 during December from 92 in the prior month. The improvement is noteworthy and it is the highest since February 2011. However, the level of the index is within the range seen during the recession (see Chart 1). Of the sub-indexes, the percentage of respondents indicating that poor sales have been problematic declined to 23% in December vs. 25% in the previous month. Further reductions of this component of the survey would point to a turnaroundTue, 10 Jan 2012 22:17:39 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-10.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-09.htmlThe key question about the growth trajectory of the U.S. economy for 2012 is if domestic economic momentum that is visible in bullish economic reports of past – ISM factory survey data, Q4 auto sales, and December employment report – will prevail in the rest of 2012 and offset headwinds from Europe (and its associated ramifications ) and the setback from a decelerating trend of business activity in China. In the context, we will be providing periodic updates as economic reports are published.Mon, 09 Jan 2012 22:10:01 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-09.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-08.htmlCivilian Unemployment Rate: 8.5% in December, down from 8.7% in November. Cycle high jobless rate for the recent recession is 10.0% in October 2009. Payroll Employment: +200,000 jobs in December vs. +100,000 in November. Private sector jobs increased 212,000 after a gain of 120,000 in November. A net loss of 8,000 jobs followed after revisions to payroll estimates of October and November. Private Sector Hourly Earnings: $23.24 in December vs. $23.20 in November; 2.1% y-o-y increase in DecemberSun, 08 Jan 2012 22:12:42 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-08.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-05.htmlInitial jobless claims fell 15,000 to 372,000 during the week ended December 31. The four-week moving average at 373,250 is the lowest since June 2008. Continuing claims, which lag initial jobless claims by one week, dropped 22,000 to 3.595 million. As of December 31, 2011 initial jobless claims stood at 372,000 vs. 418,000 a year ago. Initial jobless claims averaged 409,000 in 2011, the lowest since 2007 and they are comparable to the level seen in 2001-2003 and marginally lower than the 2008Thu, 05 Jan 2012 22:07:04 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-05.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-04.htmlThe Fed’s new communication strategy of announcing the expected path of the Fed funds rate has not resulted in a radical transformation of the Fed funds market as yet. The July 2014 Fed funds futures contract, albeit thinly traded, implies a 0.50% Fed funds rate only by mid-2014, while the 2-year Treasury note yield hovers around 0.25% (see Chart 1). The Fed’s forecast will be published on January 25, 2012. It remains unclear to what extent the Fed can nudge Treasury market yields in itsWed, 04 Jan 2012 23:05:07 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2012-01-04.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-22.htmlA fractional-reserve banking system is susceptible to bouts of liquidity stringencies that, if left unchecked, can result in serial bank failures and an abrupt contraction in bank credit. The sine qua non of central banking is to act as a lender of last resort to otherwise solvent but temporarily illiquid banks so as to prevent their temporary illiquidity from deteriorating into insolvency, which would result in the aforementioned contraction in bank credit. This “narrow” interpretation of theThu, 22 Dec 2011 22:15:13 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-22.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-19.htmlThis weekend, North Korean officials announced the passing of Supreme Leader Kim Jong-il, supposedly from a heart attack. Not too surprisingly, the next day Pyongyang heralded Kim's youngest son, Kim Jong-un, as the new head of state along with the title of "Great Successor." While it is widely known that the elder Kim was in poor health and rushing the grooming process for his son's succession, the Supreme Leader's sudden death leaves plenty of reasons to speculate as to just how theMon, 19 Dec 2011 22:20:20 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-19.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-18.htmlThe Consumer Price Index (CPI) held steady in November after a 0.1% drop in October. The 1.6% drop in the energy price index and the muted 0.1% increase in food prices helped to hold down the overall gain of the CPI in November. Gasoline prices continue to decline and offset higher prices of heating oil. The core CPI, which excludes food and energy, rose 0.2% in November following gains of 0.1% in each of the prior two months. Higher prices for apparel (+0.6%) and medical care (+0.4%) show theSun, 18 Dec 2011 22:51:47 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-18.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-15.v02.htmlThe possibility of Standard &Poors downgrading France’s triple A debt rating is the latest source of market anxiety among several other factors. Standard &Poors put 14 eurozone countries on negative watch earlier in the month. Today, Christian Noyer, the head of the central bank of France, expressed strong reservations about ratings agencies. It is helpful in this context to look at recent trends of government debt as a percent of GDP of major advanced nations. Facts and projections ofThu, 15 Dec 2011 23:44:29 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-15.v02.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-15.htmlWith most of the industrialized world focusing on all things European, we thought it might be worthwhile to see just what was happening on the other side of the Ural Mountains. Asia has not become embroiled in the debt problems sweeping through the likes of Greece and Italy, and its exposure to the euro is contained. However, what happens in Europe will inevitably drift into Asia, so a look at its major economies might provide insight into what awaits the region in 2012. In particular, we areThu, 15 Dec 2011 00:09:18 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-15.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-13.v02.htmlThe Fed upgraded the performance of the U.S. economy compared with its assessment in November. The FOMC vote to stand pat was nearly unanimous, with only one dissent. Chicago Fed President Evans dissented as he would have preferred additional policy accommodation. The economy is now seen to be growing at a moderate pace despite the slowing conditions abroad. The Fed noted that while there are "some improvements in the labor market," the "unemployment rate remains elevated." The jobless rateTue, 13 Dec 2011 23:16:51 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-13.v02.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-13.htmlA fiscal austerity program has been adopted as the cure all for the ills of the indebted members of the eurozone. The flipside of this policy is that in the short-run Germany’s exports of goods and services will take a deep hit. Exports of goods and services from Germany reached a record high of 51% in the third quarter of 2011 (see Chart 1). A large part of these exports are intra-regional exports, implying that projected setbacks to economic growth in countries implementing fiscal austerityTue, 13 Dec 2011 02:00:08 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-13.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-11.htmlOf the 27 nations that make up the European Union (EU), 23 agreed to be part of a new fiscal union, while the remaining four did not participate in the deal. Sweden, Hungary, and the Czech Republic want time to consult with their parliaments before signing to join the new union. Britain opted out because there were no guarantees that EU regulators would not be able over-rule financial regulators of the UK. The summit ended with assertions pertaining to fiscal discipline. Members would have toSun, 11 Dec 2011 22:21:30 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-11.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-08.htmlThe European Central Bank (ECB) provides temporary support to the economic bloc with its actions today. The ECB lowered the policy rate 25bps to 1.00%, expanded the range of eligible collateral for loans extended to banks, increased the maturity of loans to 3 years from the current maturity of 13 months to alleviate funding problems, and lowered reserve requirements to 1.0% from 2.0%. These steps are necessary measures to ease pressures in the banking sector and prevent a severe credit crunch.Thu, 08 Dec 2011 23:15:43 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-08.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-07.htmlAll eyes are on the European Central Bank’s (ECB) announcement tomorrow morning. The Bank of England (BoE) also meets tomorrow; the Fed’s FOMC meeting is scheduled for December 13. Markets are looking for the ECB to lower the policy rate from the current level of 1.25%. The ECB unlike the Fed and the Bank of England held the policy rate at 1.00% as the global financial crisis unfolded in late-2008. It is strongly likely that Mario Draghi will announce a rate cut. But, markets are looking forWed, 07 Dec 2011 22:19:22 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-07.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-06.htmlThere has been a string of positive news about the U.S. economy in the past few days – auto sales rose, jobless rate fell, the ISM manufacturing survey points to an increase in new orders and production, private sector construction outlays advanced. But, news from abroad is disappointing and could translate into more than a temporary dip in exports. The important question is if the tailwinds can offset the headwinds blowing through the United States. Real GDP of Brazil contracted in thirdTue, 06 Dec 2011 22:18:46 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-06.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-04.htmlCivilian Unemployment Rate: 8.6% in November, down from 9.1% in October. Cycle high jobless rate for the recent recession is 10.1% in October 2009. Payroll Employment: +120,000 jobs in November vs. +100,000 in October. Private sector jobs increased 140,000 after a gain of 117,000 in October. Addition of 82,000 jobs after revisions to payroll estimates of September and October Private Sector Hourly Earnings: $23.18 in November vs. $23.19 in October; 1.8% y-o-y increase in November vs. 1.9% gainSun, 04 Dec 2011 22:14:05 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-04.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-01.htmlThe Purchasing Managers’ Indexes (PMI) of several major economies of the world – Euro zone, China, South Korea, Brazil, Japan, Taiwan, and United Kingdom – posted declines in factory activity during November (see Chart 1). Factory sectors in Canada and Turkey showed an improvement in activity during November but at a slower pace compared with October. The U.S. factory sector posted the best performance, with the PMI moving up to 52.7 in November vs. 50.8 in the prior month. Readings above 50.0Thu, 01 Dec 2011 23:26:02 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-12-01.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-11-30.htmlThe Federal Reserve, Bank of Canada, Bank of England, the Bank of Japan, the European Central Bank, and Swiss National Bank announced coordinated actions to provide liquidity support to the global financial system. Today’s announcement involves a reduction in cost at which banks in foreign countries can borrow dollars from their central banks. The central banks lowered the price on the existing temporary U.S. dollar liquidity swap line by 50 basis points such that the new rate will be U.S.Wed, 30 Nov 2011 22:24:11 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-11-30.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-11-29.htmlThe Fed's Vice Chair Janet Yellen presented a case for additional Fed action to support economic activity in the United States. These two excerpts (emphasis added) from her speech indicate her opinion about the necessity for Fed action "The Federal Reserve continues to provide highly accommodative monetary conditions to foster a stronger economic recovery in a context of price stability. Moreover, the scope remains to provide additional accommodation through enhanced guidance on the path ofTue, 29 Nov 2011 22:34:52 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-11-29.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-11-28.htmlSales of new single-family homes increased 1.3% in October to an annual rate of 307,000, with gains in sales recorded in the Midwest (+22.2%) and West (+14.9%). Sales of new single family homes in the Northeast held steady and declined 9.5% in the South. The level of new single-family home sales during October remains close to the record low of 278,000 registered in August 2010 (see Chart 1). Nevertheless, there are many positives to note in the October new home sales report. First, supply ofMon, 28 Nov 2011 22:16:04 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-11-28.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-11-23.v02.htmlReal consumer spending increased 0.1% in October vs. a 0.5% gain in September. Purchases of durables moved up 0.9% in October, while that of non-durables increased 0.2% and outlays on services were unchanged. Although the gain in consumer spending was soft in October, the jump in consumer spending in September (+0.5%) gives an arithmetical advantage for fourth quarter consumer spending. Real consumer spending grew at an annual rate of 2.3% in the third quarter. The performance of fourthWed, 23 Nov 2011 22:16:38 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-11-23.v02.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-11-23.htmlIf you want federal debt reduction, you are going to get it Super-Committee “failure” or not. The recent debt-ceiling legislation calls for $1.0 trillion less-than-otherwise federal spending over the next 10 years. The “trigger” calls for $1.2 trillion less-than-otherwise federal spending over the next 10 years. And, with the return to the Clinton-era personal tax rates for all household income groups on January 1, 2013, revenues will increase by $3.5 trillion more-than-otherwise over the nextWed, 23 Nov 2011 00:36:42 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-11-23.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-11-17.htmlBuilders broke ground to construct new single-family homes (+3.9%) in October, but starts of multi-family units slipped 8.3%. Total housing starts fell slightly (-0.3%) to an annual rate of 628,000 in October. The important point to note is that total and single-family starts of new homes continue to hover around levels seen in the past recession (see Chart 1), which are also historical lows. Starts of single-family units stood at 430,000 in October 2011 vs. 353,000 in March 2009 (historicalThu, 17 Nov 2011 22:11:56 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-11-17.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-11-16.htmlThe Consumer Price Index (CPI) fell 0.1% in October after three months of hefty gains which ranged between 0.3% and 0.5%. The energy price index dropped 2.0% in October and more than offset increases of all other prices. Lower prices of gasoline and household energy accounted for the overall decline of the energy price index. The food price index rose only 0.1% in October, marking the smallest increase since December 2010. The core CPI, which excludes food and energy, increased 0.1% inWed, 16 Nov 2011 22:08:28 GMThttp://www.fxstreet.com/fundamental/analysis-reports/webmaster@ntrs.com (Northern Trust)http://www.fxstreet.com/fundamental/analysis-reports/daily-global-commentary/2011-11-16.html