A day after the central bank made an unexpected move to increase the key rate from 10.5 to 17%, sending the Rouble in a free-fall on Tuesday, the Russian currency begins to negate the recent losses. As of 14:26 GMT today the Rouble has managed to strengthen 7.28% against the US Dollar.
Brent crude oil dipped under $63 today, the lowest level since the summer of 2009. Among the quoted reasons are oversupply of the commodity and dim prospects for demand recovery in the future. During this week the price has already given up 9%, while during the last six months the decline amounts to as much as 45%.
The pressure on the Chinese's central bank to intensify the monetary stimulus is rising, as the industrial output showed weaker growth than expected. While the economists expected a 7.6% expansion, the reading came out at 7.2%, a 0.5 percentage point decrease from 7.7% recorded in October.
Though at first the single European currency fell to 1.2414 amid the discouraging news on the German and particularly French inflation, it then pared most of the losses in view of the new targeted long-term refinancing operation (TLTRO). Since the banks took from the ECB nearly as much funds as estimated (130 billion euros), EUR/USD continued to trade near today's open
Despite the employment change surprising to the upside (42.7K against 15.2K expected), the unemployment rate in Australia reached its 12-year high. As a result, as of 12:22 GMT, the Australian Dollar lost 0.59% on Thursday against its US counterpart.
The Euro negated today's early gains against the US Dollar after the currency started the day strong, reaching the level of $1.2400. This weakness is largely attributed to the uncertainty ahead of two ECB members' speeches and to the disappointing France industrial production data.
Economists expect China to adopt monetary easing policy in order to recover and gain its credibility once again, as the deflation deepened and the CPI's pace of growth reached the slowest level since 2009 – 1.4% in November against the increase of 1.6% in October. Moreover, the producer price index fell to 2.7% in November from the previous year.
As it turned out, the economists underestimated the headwinds the manufacturing in the United Kingdom is currently facing. While the grow was expected to slow down to 0.2% from 0.6%, the secondary sector unexpectedly contracted 0.7%, the first negative reading since July.
The Australian business sentiment fell to the lowest level since last Australian's election, as the economists expect to see the interest rates cut two times throughout 2015. According to the NAB survey, the confidence index decreased to 1 from 5 in November and the business condition indicator dropped from 13 to 5.
China's trade surplus climbed to a record $54.47 billion in November against the expected $43.95 billion due to unexpected decline in imports on lower crude oil prices. However, the record level of the surplus is followed by weaker than expected data both on exports and imports. Overseas shipments rose 4.7% from a year earlier, missing the 8% estimate, while imports fell 6.7%,
The Canadian employment data are better than the forecast, as the unemployment rate dropped at 6.5%, the lowest level in 6 years. During the month of September the Canada gained 43.1K jobs, divided in full time employment 26.5K and part time 16.5K. The Canadian Dollar fell to 1.1346 versus the Greenback.
The UK currency shrank 0.12% against the US Dollar, reaching the level of $1.5653 at the moment of writing, while the non-farm payroll report of the world's largest economy will influence the direction of the currency pair. Economists expect 230,000 workers to be added to the US's workforce, with the stable unemployment rate at 5.8% for the previous month.
The German economic data showed a recovery from the low numbers of the second quarter, as the domestic investment demand changed positively. As a consequence of emerging from a mid-year drop, the German factory orders climbed 2.5% in October following the increase of 1.1% in September, exceeding the economists forecast for the period.
The Euro depreciated against the US Dollar amid the Euro area inflation coming in line with the expectations of a 0.3% increase in the price level. So fay today the Euro has fallen 0.09% versus Greenback, reaching $1.2454.
Italian unemployment rate grew a third month in a row, reaching a level of 13.2% for the month of October against a forecast of 12.6%. Meanwhile, Matteo Renzi, Italian Prime Minister, is struggling to solve the problem of high unemployment by implementing reforms to make the labour market less rigid than it currently is. However, the official is facing strong
Even though the German unemployment rate came below the forecast and economists expect the core inflation to stand at 0.7%, the Euro continues to move lower against the US Dollar. And the bearish trend is likely to persist, according to the BNP Paribas analysts, as the ECB should preserve the dovish rhetoric by leaving the door open for more easing.
The spreading positivity of the investors regarding Germany's ability to recover led to a decrease in unemployment and to the jobless rate reaching a record low level. According to the statistics, there are now 14K less people unemployed and only adjusted 6.6% of the labour force were out of work.
The ECB Vice President expects the already adopted measures to boost the Euro area's economy to be sufficient to expand the size of the balance sheet to the same level as at the beginning of 2012. However, according to Vito Constancio, the ECB does not rule out a possibility of buying other assets, such government bonds, if the goals are
The US economy expanded at annualised 3.9% in the quarter through September, notably exceeding the consensus of 3.3% reached among the experts. Consumer spending turned out to be the main contributor, growing 2.2% versus the forecast of 1.8%. According to Dan Greenhaus at BTIG, "whether the economy is accelerating or will accelerate is no longer a question ... the economy has
The Euro appreciated 0.16% relative to the Pound, reaching the level of 0.7931 today, as investors shift their attention to the UK Treasury Committee Hearing on the BoE's inflation report. Economists expect volatility to elevate further, as more MPC members deliver their speeches and respond to questions. Since the BoE may postpone the rate hike, the risk of Sterling's fall
Euro zone's largest economy barely grew in the third quarter of this year, its GDP went up by 0.1%. And now it becomes more apparent that Germany's recovery is mostly dependent on the domestic demand - private consumption added 0.7%, while the investments gave up 0.9%. Accordingly, propensity of the businesses to make capital expenditure is low and external demand
China's Central Bank decided to cut the interest rates for the first time in two years, as the world's second largest economy needs stimulus to avoid further slowdown. China's leadership is facing problematic economic context - producer prices have been falling and consumer inflation is weak. As a result, they may need to prompt economic activity with more measures, such
Germany is the principal economy of the Euro zone, and the Ifo surveys are usually awaited with great interest. However, the volatility was low before and after today's release. At first the Euro dipped below 1.24, but once the business climate index was published, the losses were quickly erased, with the pair stabilising around 1.241. Although the consensus was a
The Swiss Franc followed the footsteps of the Euro and depreciated 0.76% against the US Dollar, reaching the level of 0.9656, the lowest point since July 2013. Mario Draghi sounded more decisive today during his speech regarding the expansion the scope of the currently running asset purchasing programme, driving the single European currency lower.