Swiss Jobless Rate Unexpectedly Increases, Stoking Growth Fears

Daily Forex Fundamentals | Written by DailyFX | Oct 10 08 11:11 GMT |

Fundamental Headlines U.S. Weighs Backing Bank Debt - Wall Street Journal Wells Fargo Grabs Wachovia as Citi Walks - Wall Street Journal Oil demand to weaken as countries tip into recession - Financial Times Yamato Life Files for Bankruptcy, Citing Investments - Bloomberg G-7, With `Backs Against the Wall,' Weighs Loan Guarantee Plan - Bloomberg GBPUSD - The clash between Great Britain and Iceland has intensified after the U.K. seized the assets of Icelandic banks operating in Europe's second largest economy in order to safeguard depositors. The U.K. Treasury ensured that all deposits held at Icelandic banks are protected as accounts in Kaupthing Singer & Friedlander and Heritable have already been transferred to ING Direct. Meanwhile, U.K. authorities are still negotiating with Icelandic regulators about protecting deposits at Icesave, a U.K.-based subsidiary of Landsbanki which is not covered by the Financial Services Compensation Scheme (FSCS). Furthermore, as U.K. deposits in Iceland are not protected under the FSCS, Prime Minister Brown threatened to 'take further action' against Iceland if the money is not returned, which includes freezing assets of Icelandic companies that operate within Britain. U.K.'s Chancellor Darling and his Icelandic counterpart are scheduled to attend an IMF meeting over the weekend to discuss the situation. USDCHF - The seasonally adjusted unemployment rate in Switzerland rose for the first time in five years, climbing to 2.6% from 2.5%, while the unadjusted jobless rate continued to hold steady at 2.4%. Indeed, the surprising downturn in labor market suggests that the economic activity throughout Europe have slow considerably, and conditions may only get worse as Germany and the U.K. teeter on the brink of a recession. As a result, market participants are anticipating the Swiss Nation Bank, who joined the coordinated rate cut earlier this week, to lower rates further in the months ahead as growth prospects for the global economy deteriorates. DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.