Meta Solusi

Despite intra-day brief rise to 1.6680 (we were unable to get a fill on our short entry at 1.6670 from our broker ONADA probably due to the spread at the release of non-farm payrolls, so we treated ourselves still holding no position ), as cable retreated sharply from there on…

Intra-day rally on dollar’s broad-based strength in reaction to the release of better-than-expected U.S. job reports suggests further consolidation above recent low at 0.9910 would take place and mild upside bias is now seen for test of 1.0176 resistance, however, break there is needed to confirm temporary low has been…

The single currency tumbled on dollar’s broad-based strength after the release of stronger-than-expected non-farm payrolls data and although euro has recovered after falling to 1.4912, upside should be limited to 1.5040/50 and intra-day resistance at 1.5092 should remain intact and bring another selloff late to 1.4900 and possibly towards 1.4850,…

Further evidence to Canada’s strengthening recovery came in the form of the monthly employment report indicating 79,000 new jobs were created in the month of November. The new unemployment rate is now 8.5 percent, down from 8.6 percent in October.

Economists were at a loss to describe the dramatic results, and many noted that while the employment situation in Canada is certainly improving, it is unlikely that it can continue to expand at November’s rate.

“Simply put, this was an inexplicably strong report, and points to a very strong pick-up in Canadian labour market activity in November,” Millan Mulraine of TD Securities wrote in a note to investors.

“However, we consider this pace of job growth to be unsustainable, and believe that it is inconsistent with the current pace of economic recovery in Canada.”

The Canadian Press

The interest rate on 30-year mortgages fell to a record low of 4.71 percent after the Federal Reserve injected $1.25 trillion into mortgage-backed securities as part of the government’s plan to reduce the cost of buying a home. Despite the low rates, qualifying for a loan remains difficult and lenders reserve the best rates for those with unblemished credit ratings and a full 20 percent down payment.

Associated Press

The US Labor Department announced that 11,000 jobs were lost in the month of December – a dramatic improvement over the 110,000 position lost in October and a reduction in the overall unemployment rate from 10.2 percent to 10 percent.

Associated Press

Statistics Canada said this morning that Canada’s current account deficit increased in the third quarter to a record high of C$13.12 billion (US$12.44 billion). Both exports and imports increased in the period but imports grew faster, leading to a new high in the deficit in trade in goods at C$3.98 billion.

Reuters

Chancellor Alistair Darling said yesterday that “new data has shown that most economies, ours included, suffered a severe shock in the first quarter of this year”, leading many analysts to conclude that Darling will downgrade the government’s assessment of the economy’s performance in 2009 in the upcoming pre-Budget report due December 9th. Early indications are that the report will show that the UK economy shrank by 4.75 percent in 2009, compared to the original forecast made last March of 3.5 percent.

BBC News

Markets in Asia and Europe opened lower this morning as fears continue to grow over the potential fall-out should Dubai World – described as the “centerpiece” of the Dubai’s economy – fail to meet upcoming debt obligations.

“You can’t just say to the world: ‘I don’t want to pay my debts’. There is no income coming in from any of these properties. I think this is shocking PR”, said David Buik, senior partner at BGC Partners.”

BBC News

The news that Dubai world sought to delay debt payments shocked the financial world last week and triggered massive flight to safety. Whether that is a significant turning point in global recovery or just an excuses for an overdue correction in risk sentiment is up for debate. But after all,…