Drought conditions in the U.S are driving corn prices higher. The United States is the biggest corn producer and exporter of the world. Japan and China are two of the biggest importers of U.S. corn along with Taiwan, South Korea, Mexico, Egypt and Colombia.
Pressure mounts on the Federal Reserve and European Central Bank to avert another recession, but neither can accomplish much without their governments pursuing more competent economic policies.
The markets are quiet today after last Friday’s run up in the Euro and equities from the anticipation of the ECB buying in the Euro bond markets. Today’s lack of action in the markets might be due to everyone waiting for news from the FOMC, ECB meetings and U.S. payroll data later in the week [...]
Here are the forecasts for upcoming economic data.
ECB President Mario Draghi said today “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro,” adding: “believe me, it will be enough”.
Sentiment in the Euro/USD remains negative after the sell-off that took place in the past few days; however the pair has found a temporary support around the 1.2050 level. Resistance levels in the Euro/USD are at 1.2180 and 1.2220.
The U.S. economy is teetering on the brink of another recession. The bad news is that if it goes down again, there won’t be much we can do to save ourselves. Like a weary heavyweight, if the economy hits the mat again, it’s down for good.
The report into the child sex abuse scandal at Penn State University, undertaken by former FBI Director Louis Freeh, revealed former President Graham Spanier and legendary football coach Joe Paterno turned a blind eye to sexual abuse by former assistant football coach Jerry Sandusky.
Italy and Spain banned “short selling”, China predicted further economic slowdown, and Spain’s sovereign debt is trading over 7.5 percent. These are some of the reasons for the global sell-off today. Asian and European equities were down over 2 percent and Euro/USD collapsed to its two-year low.
Aud/USD reached the initial target mentioned in yesterday’s analysis at 1.0432, while at the same time the Euro/USD failed to trade above the 1.2330 resistance level.