A survey of U.S. economists indicated that home prices in 20 cities around the country declined, though at a slower pace than expected, thereby signaling a possible economic recovery in 2012. Data confirming this position will be released later this week. The U.S. currency extended losses against most of its peers in anticipation of today’s Forex news which is likely to show that consumer confidence increased the most this month since July.
Currency reports showed that the Euro traded lower against the Yen as investors await this week’s Italian auction during which 20 billion Euros in bills and bonds are expected to be sold. Japan and China continue to hold talks about developing a currency market in which the Yen and the Yuan could be traded directly without the U.S. Dollar. This would be done to cut costs for companies wanting to trade directly in the two Asian currencies. Furthermore, Japan plans to purchase Chinese bonds directly. According to analysts, the negotiations are aimed at obtaining diversification as the E.U. debt crisis continues to weigh on global markets. China’s Foreign Ministry spokesman, Hong Lei, stated that efforts to increase market cooperation would ease trade between the two nations.
Other money market reports showed that Mervyn King, Governor of the Bank of England and vice chairman of the European Systematic Risk Board, released a statement indicating that the Euro-zone’s debt crisis remains a threat to real economic stability.
Lastly, the Australian and New Zealand Dollars traded close to a two-week high as Japanese stocks rallied.