Tuesday 29 September 2009

DATA SNAP: Spain Sep Flash HCPI -1% On Yr Vs -0.8% In Aug

Tue, Sep 29 2009, 07:00 GMT

DATA SNAP: Spain Sep Flash HCPI -1% On Yr Vs -0.8% In Aug

By Jonathan House

MADRID (Dow Jones)--The pace of decline of Spanish consumer prices accelerated again in September, preliminary data from Spain's National Statistics Institute showed Tuesday.

In a statement, the INE said Spain's European Union-harmonized consumer price index fell 1% on the year earlier in September after falling 0.8% on the year in August.

A Dow Jones Newswires survey of five analysts had forecast an 0.8% annual decline in September. In March, Spain became the first country in the euro zone to report an annual decline in consumer prices during the global economic recession. Weak economic conditions continued to hurt domestic consumption amid rising unemployment during recent months.

Inflation has eased sharply across the euro-zone trading area, allowing the European Central Bank to slash interest rates to support the economy.

-By Jonathan House, Dow Jones Newswires; +34-91-3958121; jonathan.house@dowjones.com

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(END) Dow Jones Newswires

September 29, 2009 03:00 ET (07:00 GMT)

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Forex: USD/JPY: Prices will hold above 88.23 today, and probably all week - Mizuho

Tue, Sep 29 2009, 07:14 GMT

FXstreet.com (Barcelona) - The Dollar sank on Monday to a fresh 7-month low at 88.20 to recover later towards levels right below 90.00, and according To Nicole Elliott, senior technical analyst at Mizuho Corporate Bank the pair will hover around here during the day.

Yesterda's low at 88.20, thus, will remain intact today and possibly, all week, says Elliott: " massive ‘hammer’ candle yesterday suggests prices will hold above its low at 88.23 today and probably all week. This morning the corrective bounce has been capped by the 9-day moving average at 90.39 and we may hover around here for much of today."

Furthermore, Elliott sees rallies to 91.50 as good selling opportunities: "Rallies towards 91.50 are seen as medium term selling opportunities for an eventual test of January’s low at 87.10. The US dollar is hardly oversold any more and at-the-money implied volatility should increase as prices thrash around between 87.00 and 92.00 this month."

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