U.S. employment probably fell for a second straight month in July as more temporary census jobs ended and private hiring remained too weak to boost a fragile economic recovery, according to a Reuters survey.
The survey of 75 economists forecast nonfarm payrolls dropped 65,000 after declining 125,000 in June. Private-sector hiring, considered a better gauge of labor market health, is seen rising 90,000 after increasing 83,000 in June.
The U.S. Labor Department will release the employment report at 08:30 a.m. (1230 GMT)
The unwinding of hiring for the decennial census was also a drag on employment in June and analysts expect the distortion to continue through August. According to government data, temporary census jobs fell by 144,000 between the June and July survey periods for the employment report.
"It (the report) would be moving in the right direction, but this is still a much weaker jobs recovery than we thought would occur at this point," said Marisa Di Natale, a director at Moody's Economy.com in West Chester, Pennsylvania.
"There is a lot of weak economic news out there and we need a turnaround in a bunch of different indicators to really confirm that the economic recovery is on a firmer footing."
Job growth has taken a step back after fairly strong gains between February and April, putting in jeopardy the economy's recovery from its worst downturn since the 1930s.
Friday's employment report is also expected to show the unemployment rate rising to 9.6 percent from 9.5 percent in June.
Growing unease over the health of the economy is weighing on President Barack Obama's popularity and hurting the Democratic Party's prospects of keeping control of Congress in November's mid-term elections.
FED WATCHING LABOR MARKET
The state of the labor market is one of the factors that will determine the timing of the Federal Reserve's first interest rate rise since reducing overnight lending rates to near zero in December 2008.
Fed Chairman Ben Bernanke has said the U.S. central bank could take steps to further ease monetary policy if the recovery were to falter. The central bank holds its next policy-setting meeting on Tuesday.
Economic growth slowed to a 2.4 percent annual rate in the second quarter after expanding at a 3.7 percent pace in the first three months of this year.
Despite the tepid private sector jobs growth, the pace of layoffs has moderated significantly from the first quarter of last year, when employers were culling an average of 752,000 jobs a month.
Analysts said the pullback in hiring was a reflection of the end of some government stimulus programs, including a popular homebuyer tax credit, as well as the European sovereign debt crisis, which hurt both business and consumer confidence.
In the face of sluggish domestic demand, businesses were also opting to invest in equipment and technology to boost productivity rather than increase their workforces, they said.
"The demand picture hasn't strengthened enough for them to take on more workers, eventually that will change," said Jay Feldman, an economist at Credit Suisse in New York.
"As the recovery matures they will have to have more workers, we have not reached that point yet."
Last month, employment gains in the dominant service sector likely continued after June's increase of 91,000. Analysts will be watching temporary help services, which is seen as a harbinger of future permanent hiring, after job gains slowed somewhat in June.
Payrolls in the goods-producing sector probably fell for a second straight month in July, reflecting mining layoffs related to a moratorium on deep water oil drilling and home construction job losses.
However, manufacturing employment likely increased again in July. The sector is leading the economic recovery, which started in the second half of 2009. The Institute for Supply Management's gauge of manufacturing employment rose in July after pulling back the prior month.
State and local governments, struggling with huge budget deficits, likely purged more workers last month. Analysts reckon government payrolls could shrink by as much as 175,000 in July after dropping 208,000 in June.
They will also watch the average workweek for clues on the health of the labor market after weekly hours slipped in June. The workweek is expected to have remained unchanged at 34.1 hours in July.
Source:Reuter.com
Showing posts with label Forex News. Show all posts
Showing posts with label Forex News. Show all posts
Thursday, August 5, 2010
US Postal Service loses $3.5 bln in third quarter
The U.S. Postal Service reported a quarterly net loss of $3.5 billion on Thursday and said it will likely have a cash shortfall going into 2011.
The agency, which delivers nearly half the world's mail, has reported net losses in 14 of the last 16 fiscal quarters.
Revenue in the third quarter that ended June 30 fell $294 million to $16 billion from a year ago, while expenses were $789 million higher at $19.5 billion, due largely to higher workers' compensation costs and retiree health benefits.
"Given current trends, we will not be able to pay all 2011 obligations," said Joseph Corbett, the agency's chief financial officer.
Cash flow seems on track to handle 2010 operations, Corbett said, but it is uncertain whether sufficient liquidity will be in place for 2011 after the agency must make a $5.5 billion payment on Sept. 30 to prefund retiree health benefits.
"It is clear that a liquidity problem is looming and must be addressed through fundamental changes requiring legislation and changes to contracts," Corbett said.
A U.S. law requires annual payments through 2016 to prefund the health benefits, a requirement not placed on any other government agency. The Postal Service is pushing for legislation that would restructure this payment schedule.
Congress lowered the amount the Postal Service was obligated to pay to prefund benefits in 2009, but there has been no indication that will happen again this year.
To remain solvent, the Postal Service is also seeking Congressional approval to cut Saturday service, and has proposed price hikes for 2011 that require approval from the Postal Regulatory Commission. [ID:nN06102566]
The Affordable Mail Alliance, consisting of hundreds of small businesses, charities, and other customers of the Postal Service, contested the service's predictions of a cash shortfall.
The group said certain filings suggest the agency will have $1.3 billion in cash after making the benefits payment.
"Unfortunately, the Postal Service seems to be attempting to justify their proposed rate hikes of ten times the rate of inflation - a move that would drive away more consumers and worsen the financial situation they're highlighting in this report," said Tony Conway, a spokesman for the group and executive director of the Alliance of Nonprofit Mailers.
SHRINKING MAIL VOLUME
The Postal Service faces a continued downward spiral in mail volume, as more Americans communicate by email and electronically pay their bills.
Some 40.9 billion pieces of mail were delivered in the third quarter that ended June 30, down 1.7 percent from the same period a year ago.
While the global recession sparked unprecedented drops in mail volume, the increased popularity of email and competition from FedEx Corp (FDX.N), United Parcel Service Inc (UPS.N) and other delivery services have long cut into the agency's mail volume.
Postmaster General John Potter said the Postal Service is expected to achieve around $3 billion in cost reductions in 2010 through cuts in work hours to match declining volumes and other initiatives, but more is needed to secure the agency's fiscal stability.
"It also will require that the Postal Service gain flexibility within the law to move toward five-day delivery, to adjust our network as needed, to develop new products the market demands, and to work with our unions to meet the challenges ahead," he said.
The agency, which delivers nearly half the world's mail, has reported net losses in 14 of the last 16 fiscal quarters.
Revenue in the third quarter that ended June 30 fell $294 million to $16 billion from a year ago, while expenses were $789 million higher at $19.5 billion, due largely to higher workers' compensation costs and retiree health benefits.
"Given current trends, we will not be able to pay all 2011 obligations," said Joseph Corbett, the agency's chief financial officer.
Cash flow seems on track to handle 2010 operations, Corbett said, but it is uncertain whether sufficient liquidity will be in place for 2011 after the agency must make a $5.5 billion payment on Sept. 30 to prefund retiree health benefits.
"It is clear that a liquidity problem is looming and must be addressed through fundamental changes requiring legislation and changes to contracts," Corbett said.
A U.S. law requires annual payments through 2016 to prefund the health benefits, a requirement not placed on any other government agency. The Postal Service is pushing for legislation that would restructure this payment schedule.
Congress lowered the amount the Postal Service was obligated to pay to prefund benefits in 2009, but there has been no indication that will happen again this year.
To remain solvent, the Postal Service is also seeking Congressional approval to cut Saturday service, and has proposed price hikes for 2011 that require approval from the Postal Regulatory Commission. [ID:nN06102566]
The Affordable Mail Alliance, consisting of hundreds of small businesses, charities, and other customers of the Postal Service, contested the service's predictions of a cash shortfall.
The group said certain filings suggest the agency will have $1.3 billion in cash after making the benefits payment.
"Unfortunately, the Postal Service seems to be attempting to justify their proposed rate hikes of ten times the rate of inflation - a move that would drive away more consumers and worsen the financial situation they're highlighting in this report," said Tony Conway, a spokesman for the group and executive director of the Alliance of Nonprofit Mailers.
SHRINKING MAIL VOLUME
The Postal Service faces a continued downward spiral in mail volume, as more Americans communicate by email and electronically pay their bills.
Some 40.9 billion pieces of mail were delivered in the third quarter that ended June 30, down 1.7 percent from the same period a year ago.
While the global recession sparked unprecedented drops in mail volume, the increased popularity of email and competition from FedEx Corp (FDX.N), United Parcel Service Inc (UPS.N) and other delivery services have long cut into the agency's mail volume.
Postmaster General John Potter said the Postal Service is expected to achieve around $3 billion in cost reductions in 2010 through cuts in work hours to match declining volumes and other initiatives, but more is needed to secure the agency's fiscal stability.
"It also will require that the Postal Service gain flexibility within the law to move toward five-day delivery, to adjust our network as needed, to develop new products the market demands, and to work with our unions to meet the challenges ahead," he said.
Dollar stuck near 3-½ mth low as jobs data looms
The dollar was on the defensive near a 3-½ month low against a basket of currencies after weak U.S. jobless claims figures heightened worries that Friday's payroll data could paint a bleak picture of the U.S. economic recovery.
A weak reading could fuel talk that the Federal Reserve may consider additional easing steps as early as next week, which could put pressure on the dollar particularly against the yen, given the pair's recent strong correlation with U.S. Treasury yields.
"Unless employment improves, housing demand won't improve and consumption won't grow. The U.S. economy could hit a lull," said Kakuya Kojoh, head of the securities department at Nissan Century Securities.
Against the Japanese currency, the dollar traded at 86.08 yen JPY=, up 0.3 percent on the day and more than one yen above its November low of 84.82 yen, a break of which would take it to a 15-year low.
Some covered short dollar positions against the yen before the U.S. employment data, traders said.
"The market is focusing on the outlook for the U.S. economy. If the dollar breaks below the November low, it could enter a whole new world," said Minoru Shioiri, chief manager of forex trading at Mitsubishi UFJ Morgan Stanley Securities.
Traders said there was a sizable volume of knockout option positions below 85 yen, which suggests that the dollar's fall could become more volatile if it does step into those price levels.
While further yen gains could stir talk of yen-selling intervention by Japanese authorities, many market players think Tokyo is unlikely to pull the trigger at this time. [ID:nTOE672023]
For now the dollar has some support at 85.32 yen, its low on Wednesday.
The euro fetched $1.3179 EUR=, keeping much of Thursday's gain of about 0.3 percent. Now not far off its three-month high of $1.3262 hit earlier in the week, the currency has immediate support around $1.3105-25, a previous resistance area.
U.S. JOBS IN FOCUS
The dollar index .DXY stood at 80.84, little changed from late U.S. trade and near its Tuesday low of 80.469, its lowest since mid-April.
The index, however, appears to have some support around 80.50, having managed to hold near its 200-day moving average, which stood at 80.792 on Friday.
Its 14-day relative strength index is below 30, indicating a heavily oversold position.
Some traders therefore see a chance of a rebound in the dollar if the payrolls data, due at 1230 GMT, provides a positive surprise or even comes close to market expectations.
"Everyone is short the dollar. That means the impetus for the dollar to rebound on better-than-expected jobs data would be much greater than that to extend losses on poor data," said Tsutomu Soma, senior manager of the foreign securities department at Okasan Securities.
Economists forecast a total job loss of 65,000 in July, following a fall of 125,000 in June.
On Thursday, the U.S. Labor Department reported that the number of Americans filing for initial jobless benefits rose 19,000 to 479,000 last week, the highest level since early April, despite economists' forecast for a fall.
The Australian dollar erased earlier losses, after the Reserve Bank of Australia stuck to its forecasts for domestic growth to accelerate to 4 percent over the next two years in its quarterly statement.
The Aussie AUD=D4 changed hands at $0.9148, nearly flat on the day, and 0.4 percent below its three-month peak of $0.9184 hit on Wednesday.
The Australian currency stayed near a 2-½ month high against the New Zealand dollar, which continued to suffer from Thursday's poor New Zealand job data.
The Aussie fetched NZ$1.2571 AUDNZD=R, after having risen to around NZ$1.2590 on Thursday.
The kiwi slipped 0.3 percent against the U.S. dollar to $0.7276 NZD=D4. (Addtional reporting by Rika Otsuka)
Source:Reuter
A weak reading could fuel talk that the Federal Reserve may consider additional easing steps as early as next week, which could put pressure on the dollar particularly against the yen, given the pair's recent strong correlation with U.S. Treasury yields.
"Unless employment improves, housing demand won't improve and consumption won't grow. The U.S. economy could hit a lull," said Kakuya Kojoh, head of the securities department at Nissan Century Securities.
Against the Japanese currency, the dollar traded at 86.08 yen JPY=, up 0.3 percent on the day and more than one yen above its November low of 84.82 yen, a break of which would take it to a 15-year low.
Some covered short dollar positions against the yen before the U.S. employment data, traders said.
"The market is focusing on the outlook for the U.S. economy. If the dollar breaks below the November low, it could enter a whole new world," said Minoru Shioiri, chief manager of forex trading at Mitsubishi UFJ Morgan Stanley Securities.
Traders said there was a sizable volume of knockout option positions below 85 yen, which suggests that the dollar's fall could become more volatile if it does step into those price levels.
While further yen gains could stir talk of yen-selling intervention by Japanese authorities, many market players think Tokyo is unlikely to pull the trigger at this time. [ID:nTOE672023]
For now the dollar has some support at 85.32 yen, its low on Wednesday.
The euro fetched $1.3179 EUR=, keeping much of Thursday's gain of about 0.3 percent. Now not far off its three-month high of $1.3262 hit earlier in the week, the currency has immediate support around $1.3105-25, a previous resistance area.
U.S. JOBS IN FOCUS
The dollar index .DXY stood at 80.84, little changed from late U.S. trade and near its Tuesday low of 80.469, its lowest since mid-April.
The index, however, appears to have some support around 80.50, having managed to hold near its 200-day moving average, which stood at 80.792 on Friday.
Its 14-day relative strength index is below 30, indicating a heavily oversold position.
Some traders therefore see a chance of a rebound in the dollar if the payrolls data, due at 1230 GMT, provides a positive surprise or even comes close to market expectations.
"Everyone is short the dollar. That means the impetus for the dollar to rebound on better-than-expected jobs data would be much greater than that to extend losses on poor data," said Tsutomu Soma, senior manager of the foreign securities department at Okasan Securities.
Economists forecast a total job loss of 65,000 in July, following a fall of 125,000 in June.
On Thursday, the U.S. Labor Department reported that the number of Americans filing for initial jobless benefits rose 19,000 to 479,000 last week, the highest level since early April, despite economists' forecast for a fall.
The Australian dollar erased earlier losses, after the Reserve Bank of Australia stuck to its forecasts for domestic growth to accelerate to 4 percent over the next two years in its quarterly statement.
The Aussie AUD=D4 changed hands at $0.9148, nearly flat on the day, and 0.4 percent below its three-month peak of $0.9184 hit on Wednesday.
The Australian currency stayed near a 2-½ month high against the New Zealand dollar, which continued to suffer from Thursday's poor New Zealand job data.
The Aussie fetched NZ$1.2571 AUDNZD=R, after having risen to around NZ$1.2590 on Thursday.
The kiwi slipped 0.3 percent against the U.S. dollar to $0.7276 NZD=D4. (Addtional reporting by Rika Otsuka)
Source:Reuter
Tuesday, August 11, 2009
Currency Directory
| Country | Capital | Currency | Currency Symbol |
 Afghanistan | Kabul | Afghanistan Afghanis | AFN |
 Albania | Tirana | Albania Leke | ALL |
 Algeria | Algiers | Algeria Dinars | DZD |
 Argentina | Buenos Aires | Argentina Pesos | ARS |
 Australia | Canberra | Australian Dollar | AUD |
 Bahamas | Nassau | Bahamas Dollars | BSD |
 Bahrain | Manama | Bahrain Dinar | BHD |
 Bangladesh | Dhaka | Bangladesh Taka | BDT |
 Barbados | Bridgetown | Barbados Dollars | BBD |
 Bermuda | Hamilton | Bermuda Dollars | BMD |
 Brazil | Brasilia | Brazil Reais | BRL |
 Bulgaria | Sofia | Bulgaria Leva | BGN |
 Canada | Ottawa | Canadian Dollar | CAD |
 Chile | Santiago | Chile Pesos | CLP |
 China | Beijing | China Yuan | CNY |
 Colombia | Bogota | Colombia Pesos | COP |
 Costa Rica | San Jose | Costa Rica Colones | CRC |
 Czech Republic | Prague | Czech Republic Koruny | CZK |
 Denmark | Copenhagen | Danish Krone | DKK |
 Dominican Republic | Santo Domingo | Dominican Republic Pesos | DOP |
 Eastern Caribbean States | Castries | East Caribbean Dollars | XCD |
 Egypt | Cairo | Egypt Pounds | EGP |
 Estonia | Tallinn | Estonia Krooni | EEK |
 Fiji | Suva | Fiji Dollars | FJD |
 French Polynesia | Papeete | Comptoirs Francais du Pacifique Francs | XPF |
 Hong Kong | Hong Kong Central | Hong Kong Dollar | HKD |
 Hungary | Budapest | Hungary Forint | HUF |
 Iceland | Reykjavik | Iceland Kronur | ISK |
 India | New Delhi | Indian Rupee | INR |
 Indonesia | Jakarta | Indonesia Rupiahs | IDR |
 Iran | Tehran | Iran Rials | IRR |
 Iraq | Baghdad | Iraq Dinars | IQD |
 Israel | Jerusalem | Israel New Shekels | ILS |
 Jamaica | Kingston | Jamaica Dollars | JMD |
 Japan | Tokyo | Japanese Yen | JPY |
 Jordan | Amman | Jordan Dinars | JOD |
 Kenya | Nairobi | Kenya Shillings | KES |
 Kuwait | Kuwait | Kuwaiti Dinar | KWD |
 Lebanon | Beirut | Lebanon Pounds | LBP |
 Malaysia | Kuala Lumpur | Malaysian Ringgit | MYR |
 Mauritius | Port Louis | Mauritius Rupees | MUR |
 Mexico | Mexico City | Mexico Pesos | MXN |
 Morocco | Rabat | Morocco Dirhams | MAD |
 New Zealand | Wellington | NewZealand $ | NZD |
 Norway | Oslo | Norwegians Krone | NOK |
 Oman | Muscat | Omani Riyal | OMR |
 Pakistan | Islamabad | Pakistan Rupee | PKR |
 Peru | Lima | Peru Nuevos Soles | PEN |
 Philippines | Manila | Philippines Pesos | PHP |
 Poland | Warsaw | Poland Zlotych | PLN |
 Qatar | Doha | Qatari Riyal | QAR |
 Romania | Bucharest | Romania New Lei | RON |
 Russian Federation | Moscow | Russia Rubles | RUB |
 Saudi Arabia | Riyadh | Saudi Riyal | SAR |
 Singapore | Singapore | Singapore Dollar | SGD |
 Slovakia | Bratislava | Slovakia Koruny | SKK |
 South Africa | Pretoria | South Africa Rand | ZAR |
 South Korea | Seoul | South Korea Won | KRW |
 Sri Lanka | Colombo | Sri Lanka Rupees | LKR |
 State of Croatia | Zagreb | Croatia Kuna | HRK |
 Sudan | Khartoum | Sudan Pounds | SDG |
 Sweden | Stockholm | Swedish Korona | SEK |
 Switzerland | Bern | Swiss Franc | CHF |
 Taiwan | Taipei | Taiwan New Dollars | TWD |
 Thailand | Bangkok | Thai Bhat | THB |
 Trinidad & Tobago | Port-of-Spain | Trinidad and Tobago Dollars | TTD |
 Tunisia | Tunis | Tunisia Dinars | TND |
 Turkey | Ankara | Turkey New Lira | TRY |
 United Arab Emirates | Abu Dhabi | U.A.E Dirham | AED |
 United Kingdom | London | UK Pound Sterling | GBP |
 United States of America | Washington, DC | US Dollar | USD |
 Venezuela | Caracas | Venezuela Bolivares Fuertes | VEF |
 Vietnam | Hanoi | Vietnam Dong | VND |
 Zambia | Lusaka | Zambia Kwacha | ZMK |
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Pakistan Rupee Exchange Rate
