The Yen will probably strengthen against the U.S. Dollar to around 105 at the end of the year, estimate the HSBC analysts. According to them, it is too early for the monetary authority to rise borrowing costs. Indeed, Janet Yellen may not want to halt economic recovery by increasing long-term interest rates. The Japanese currency rose 0.08% against the US
The ECB expects the demand for loans from Eurozone banks will notably increase in the last three months of the year following a surge in the third quarter. The Euro area banks have already made it easier to raise capital, and they will continue to make the conditions even less demanding. However, the banks report no changes in the standards
The World Bank suggests the second biggest economy to cut its economic growth target and focus on reforms. After thirty years of high-paced development, China wants to reorganise its economic system and realise better-quality growth, but has remained strict regarding achieving growth objectives. Meanwhile, the World Bank asserts there will be no repercussions with respect to the Chinese labour market
China shows signs of weakness, as the industrial profit growth decreased. Chinese manufacturers have grappled with falling prices, with PPI falling 1.8% in September with respect to the month one year earlier. The annual economic growth is rising at the weakest pace since the global financial crisis. It may have also been the new levy on the earnings of some
The Euro reached its opening trade value against the U.S. Dollar, despite it gaining at the beginning of the Asian session. After the European markets opened, the Euro slid down to $1.2689, breaking the $1.2700 level. According to Peter Praet, the ECB council member, the bloc will likely avoid negative growth, while the IMF sees recession as a significant probability.
The Japan's retail sales are soaring, as the economy is overcoming the turmoil provoked by Shinzo Abe, who increased the sales tax in April. The data showed an increment of 2.7% in sales from September to August. Economists suppose the stronger sales, realised in the last four months, could provoke an additional rise in the levy at the end of
Deflation can entail positive and negative effects for a country. Economists expect Europe to face 'bad' deflation, as the bloc's growth is feeble, unemployment is significantly elevated and debt levels are increased. At the same time, the U.S. is expected to experience a positive impact of deflation, as the energy costs coming down push the economy forward.
After the ECB's stress test, the European banks' failure list shrinks due to positive financial behaviour of most of the lenders. Indeed, only 25 were found with a deficit, while eightbanks have not already planned a solution to cover the capital gaps. Half of the banks are located in Italy, including Banca Monte dei Paschi di Siena SpA, which has
After deciding to keep its benchmark interest rate at the level of 0.05%, the ECB revealed more details concerning its asset-backed securities purchase programme. ECB President Mario Draghi stated that the bank will commence purchasing covered bonds this present month and the rest of assets will be bought in the last three months of 2014, continuing in this manner for
Gold extended its weekly decline as investors continued to eye the possibilities concerning the increase of the U.S. interest rates which would lessen gold's appeal as a safe haven investment. Gold for immediate delivery lost 0.3% to $1,211.06 per ounce, adding to its total losses of 0.6% this week. On September 30, gold was at $1,204.57, its lowest in 2014.
The U.S. Dollar managed to post gains versus the Yen for the first time in three days as economists expect that employers will have created the biggest amount of new employment positions in three months time in September. The Dollar gained modest 0.5% percent to 108.91 Yen early morning in London after having fallen 1.1% in total for the last
The service sector in China posted its slowest growth in eight months time on the account of new orders, which had their first decrease since 2008. The non-manufacturing PMI slid to 54.0 for the month of September, a four point dip from August. Generally, a score over 50 indicates a growing economy. China's economy is stalled by the abating activity
Saudi Arabia decided to decrease its official selling price of oil, causing global oil prices to fall to their lowest in over two years time. Other contributing factors to the price dip are increased U.S. output, worries over a global supply glut, and decreasing global demand. Overall, Brent crude lost more that 1%, sliding to $93, which is its lowest since mid-2012. Light crude has not
European shares are expected to open a touch higher on Friday, even though many investors were left rather unsatisfied after ECB President Mario Draghi's speech. Many expected a more explicit explanation of Draghi's planned asset purchase program. Draghi also shied away from talking about an American-style quantitative easing program. FTSE is expected to add 34 points to 6,480, and the
The output of Japan's economy fell; however, this was set off by better retail sales and an upturn in the job market. Industrial production for the month of August decreased by 1.5% in comparison to July, contrasting economists's predictions of a 0.2% increase. In contrast, retail sales gained 1.9%, and the unemployment rate fell to 3.5%. The production has fallen
Despite the small slide on Tuesday, the Dollar is still set for its best year since 2010 and the biggest increase in more than a year. In addition, the Dollar index was at 85.544, quite near the peak of 85.798, last seen in mid-2010. In three months time, the Greenback has added over 7% on the account of Fed speculations
Pro-democracy protests in Hong Kong have had a severe impact on many Asian stocks and indices, with a drop nearing a 16-month low. The MSCI Asia Pacific Index lost 0.5% early morning in London, adding to the 5% losses in September.The Heng Seng Index slid 1.4%, stopping its gains for this year. In addition, Japan's Topix decreased by 0.8%, and
Gold managed to receive some reprieve after hitting a nine-month low on the account of the conflicts in Hong Kong; however, the yellow metal is still set for its steepest fall since June of last year due to the rise in the Dollar. Gold lost 5.4% this month as it touched $1.206.85 the previous week. There is little hope for
The New Zealand Dollar fell almost 2% on Monday to $0.77, its lowest in 14 months, after the news that the RBNZ has sold more than 500 million NZD since August in order to weaken the Kiwi. Another interest rate increase was expected in July; however the bank refrained from it in order to monitor the currency. This has lead
Brent for November delivery dipped 9 cents lower to $97.11 per barrel, ceasing its gains of 20 cents which it managed to add yesterday, September 29. U.S. crude for the month of November fell 25 cents and traded at $94.32. Oil prices around the world are expected to extend their consecutive three month drop due to the high supply and the abating demand in China
The strong American Dollar had dampened the attractiveness of commodities as investments; however, copper was able to increase from its almost four-month lows before the release of U.S. GDP data. The metal pushed up by 0.6%, adding $38.75 to its price of $6,733.75 per metric ton on the LME early morning in Tokyo. Nevertheless, the metal is down 4.1% overall
The Euro continues to abate as the Dollar to rises to new highs. The euro touched an almost two-year low on Thursday on the possibility of the Federal Reserve pursuing a divergent monetary policy between it and the ECB. The common currency now trades at $1.2754, gaining from $1.2730, matching the lows of November 2012. Economic data also put pressure
The American Dollar is still on its path towards growth, fuelled by the Fed planning to end the QE in October and raising the interest rated mid-2015, paired with sluggish growth of other economies. The Dollar Spot Index added 0.1%, highest since mid-2010. In addition, the GDP for the second quarter is set to have grown 4.6%, adding to consumer
The Yen fell closer to its six-year low against the Dollar as the Japanese Prime Minister Shinzo Abe alluded to developments in the pension fund reforms. The Yen fell against the majority of its trading peers, after the head of the ministry overseeing the GPIF hinted at the government increasing foreign asset purchases. Japan's currency lost 0.2% to 108.98, after