The Dollar is looking to the largest monthly gain against the Euro since last year's February with the US economic data showing extremely positive results. The Greenback has advanced against 15 of the other 16 major currencies as the GDP saw a 4% annualized growth this quarter. This and the strong employment numbers make the US future outlook quite promising.
The economic growth in the second quarter was led by an increase in consumption and investment, which indicated that the slump in the first quarter was an anomaly. GDP went up 4% from April to June exceeding the forecast of economists. The increase was the same as the medial growth rate starting from July to December 2013, the strongest six-month
China has to adjust the economic growth target of 6.5-7% for the next year and plans to abstain from stimulus measures unless the economy faces the prospect of further sharp decline from that level, the IMF said today. The International Monetary Fund repeated its forecast that the economic growth would slip to 7.4% this year and sink further to 7.1% in 2015.
The greenback increased to its highest value in one-and-a-half months against the Canadian Dollar due to solid US gross domestic product growth and employment change. The pair hit 1.0894, the highest since in one-and-a-half months, and proceeded to consolidate at 1.0892, representing a 0.36% increase.
German inflation fell reinforcing the signs that ECB's stimulus will not affect the region right away. The CPI declined by 0.2% to 0.8% in July compared to June's data. As the ECB has already announced the measures to avoid deflation and reach the inflation goal of 2% these news could only lead to further boosts to the economy.
Euro fell to an eight-month low on Wednesday and was trading at 1.3395 against the Dollar. The fall has come as a bit of a surprise with Spain's promising GDP growth numbers. However, with the US recovery going a lot better than the EU's it might just show the strength of the Greenback. Meanwhile, the European stocks also fell due to recent sanctions against Russia.
The gross domestic product in the US expanded by 4.0% in the second quarter. Increments in both business investment and consumer spending facilitated the increase which surpassed the 3% median forecast obtained in Bloomberg's survey of eighty economists, and also most of the other predictions which ranged from 1.9% to 5.2%.
The change in employed people during the month of July increased by 218,000, revealing to be less than expected. It had been forecast that the number of employed people would rise by 230,000. Although this indicator is not considered to be a very consistent guide for the official report, due to be released on Friday, it gives some indications on
Sweden's Krona dropped after the report concluded the largest Scandinavian economy grew less than anticipated last quarter. As a result the Krona depreciated 0.5% against the Euro falling to 9.2378. The Krona also dropped 0.6% against the Greenback today. The GDP climbed 0.2% in the second quarter, while overall the economy gained an annual 1.9% as compared to estimated 2.4%.
Asian stocks went up for a fourth consecutive day as the U.S. and EU strengthened sanctions on Russia and before the Fed updates monetary policy on the markets. The MSCI Asia Pacific increased 0.3% to 149.8, while South Korea's Kospi Index went up 1%. Hong Kong's Hang Seng Index advanced 0.4% and Japan's Topix Index closed 0.1% higher.
After the release of Switzerland's KOF report the greenback rose near to its highest value in five months against the Swiss Franc. The data revealed that the KOF index dropped to 98.1 for the month of July, therefore being substandard to the 100.5 forecast. The pair climbed to 0.9079, its highest price since February, and proceeded to consolidate at 0.9075.
Russia's currency strengthened for the first time after decreasing for five successive days, due to traders considering US and EU sanctions milder than expected. However, the EU will announce more sanctions today for another three organizations and eight people. The Ruble advanced 0.5% against both the Euro and the Dollar, trading at 47.7590 and 35.6245 correspondingly.
The Aussie depreciated against its U.S. peer on Wednesday, following investors' anticipation of the Fed's monthly policy statement today and upcoming U.S. figures. AUD/USD reached 0.9374 during the early session, but dropped 0.13% consolidating at 0.9372. The pair is expected to find the support at 0.9338 but face the resistance at 0.9424.
François Hollande, the President of France, earlier this year implemented a law that caps rents in expensive neighbourhoods. In order to protect homebuyers, the law also increased the quantity of documents that have to be provided by sellers. This led to a drop in housing starts and permits during the second quarter of 19% and 13% respectively. Although the damage
The Spanish economy expanded in the second quarter at the strongest pace since 2007. According to the first estimate, gross domestic product rose by 0.6% during the period from April to June, representing its fastest pace ever since the last quarter of 2007. On a year-on-year basis, the Spanish economy grew 1.2%, up from the first quarter's 0.5% rise.
Japanese industrial production slipped the most since the March 2011 earthquake, stressing the impact of the April's sales-tax increase on the country's economy. The industrial output fell 3.3% in June as compared to May. Overall the economy has presumably slipped 5.2% in the April-June period and is expected to gain 2.4% this quarter.
With the Pound losing its spot as the most bullish bet among the top ten currencies it has declined to 1.6944 against the Dollar from a six-year high of 1.7192. With the positive news from the UK economy already included in the price it seems that the top may have already been reached. In the past year the Sterling has
WTI was near its weakest price in the last two weeks before released government data, which may signal weakened oil demand in the U.S. The nation's stockpiles have increased for three consecutive weeks to 217.9 million barrels, creating speculation on the decreased demand. September futures were traded at $101.11 per barrel, up 14 cents, but they went down 70 cents
Shares declined on Tuesday as negative outlook for companies such as UPS and FedEx caused the US indexes to end the day lower. UPS lost 3.7% and FedEx fell 1.6% due to disappointing earnings reports. One of the few positives was Twitter, which leaped 14.5% as its revenue doubled. Overall, the DJI declined 0.41% and the S&P 500 fell 0.45%.
The Greenback almost reached its peak in nearly two months against major counterparts amid the outlook jobs numbers are going to introduce stronger economic growth, impelling the Fed to further subside stimulus today. The Dollar traded at $1.3411 per Euro after reaching $1.3409 yesterday. The Bloomberg Dollar Spot Index did not change much gaining 0.3% to 1,016.71.
The EU and U.S. made additional sanctions on Russia's economy by targeting energy, banking and defense industries in order to get Putin to back off on Ukraine. EU governments agreed on restricting export of equipment and barring state-owned banks from selling bonds or shares in Europe. The IMF forecast that Russia's economy will expand by 0.2% from the previous 1.3%.
New Zealand's overvalued currency may experience further declines after the RBNZ warned the Kiwi's level is "unjustified". The Reserve Bank of New Zealand lifted the official cash rate by 0.25% to 3.5% in July, the fourth raise since January. The Kiwi reached its strongest level since August 2011 in July this year. The New Zealand's currency, however, fell to 85.03 U.S. cents today, the lowest in
During July consumer confidence climbed to 90.9 surpassing expectations from analysts, who had forecast a rise to 85.5 from 85.2 in the previous month. The data released by the Conference Board suggests that consumers in the US are feeling more enthusiastic about the economy. The index is a survey of around 5000 households which asks respondents to rate present and
The S&P/Case-Shiller Composite-20, which measures the change in the selling price of homes in twenty metropolitan areas, climbed at its weakest pace in thirteen months. It had been forecast to rise by 10%. However, it was reported to have only grown by 9.3%. After the release, the Dollar rose versus the Euro to 1.3417.