FOREXYARD: Forex News Blog | |
- German Producer Inflation Grows 0.7% in August
- British Government Spending Less
- New Zealand Credit Card Spending on the Rise
- European Bourses Fail to Stabilize
| German Producer Inflation Grows 0.7% in August Posted: 19 Aug 2011 07:15 AM PDT
The German Producer Price Index (PPI) rose a surprising 0.7% this past month, beating out expectations for a meager 0.2% increase, up from last month's 0.1% growth. The PPI report measures the percent change in the price of goods sold by manufacturers, indicating both growth in demand and rising material costs. Inflationary reports like the monthly PPI figure highlight levels of price increases across a nation's economy. Price increases reflect several influences in both positive and negative directions, but tend to bolster confidence as they are a sign of growth. Price decreases, known as deflation, are more worrisome for the cyclical trap they tend to generate on regional growth. With today's significant uptick in Germany's PPI, the EUR may find some added confidence injected prior to the week's closing. Read more forex trading news on our forex blog. |
| British Government Spending Less Posted: 19 Aug 2011 07:13 AM PDT
In a not-so-surprising turn of events, the morning's release of public sector net borrowing out of Great Britain revealed a slow down in the level of spending at the governmental level. Publically owned corporations and national, as well as local, governments spent 2 billion pounds less than they earned in revenue. The report, issued by the Office of National Statistics, highlights the austerity attempts by the British government to control runaway spending and reduce the nation's deficits. The 2 billion pound monthly surplus is a step in the right direction for such an initiative and it will be interesting to see where these funds go over the next few months. Read more forex trading news on our forex blog. |
| New Zealand Credit Card Spending on the Rise Posted: 19 Aug 2011 07:11 AM PDT
A report released by the Reserve Bank of New Zealand (RBNZ) this morning published the latest findings on the level of consumer spending taking place through the medium of credit cards. The findings revealed a 7.3% increase, year-on-year, in such personal expenditures among New Zealanders. Credit card spending differs from other types in the sense that it bears a correlation to consumer confidence in future economic growth. Typical consumer spending is the use of disposable income, but credit card spending is a commitment to future income. The growth represents a positive indicator for growing optimism in New Zealanders' outlook on their economy. Read more forex trading news on our forex blog. |
| European Bourses Fail to Stabilize Posted: 19 Aug 2011 05:38 AM PDT
The downward trend for European bourses continued this morning with the major indices all trading in the red and gold prices reaching a new all-time high. The euro has recovered off of its lows following reports of the ECB bond buying but USD strength could reemerge once trading gets underway in North America. Worries that European banks are not well capitalized to deal with significant losses from a sovereign default or a US recession has European equities deep in the red. Yesterday's disappointing US economic data and increased inflation did little to stabilize the situation. One European bank has been borrowing dollars from the ECB for the first time since February. The SNB has also activated its swap line it holds with the Federal Reserve. The German DAX is down 3.50%. The FTSE 100 is lower by 1.85% and the French CAC 40 is down by 2.20%. Asian equities also finished the day down sharply. The euro has fared better than European financials with rumors of the ECB back in the market buying Italian and Spanish bonds. This has supported the EUR/USD with the pair rallying back to 1.4400 after failing to break below yesterday's low at 1.4270. As the New York trading session gets underway the euro could come under renewed pressure should US stocks move in the direction of their European counterparts. The EUR/USD has a short term retracement target at 1.4420 with resistance is located at 1.4500. Support is at 1.4350 and yesterday's low. Canadian CPI was in-line with consensus forecasts of 0.2% m/m. The CAD initially was sold following the news but the ensuing euro rally helped support the commodity currency. The Loonie is currently subject the events in Europe and in the US for direction as the USD/CAD has a high negative correlation with the S&P 500. Initial support for the pair is found at 0.9775 but has a 61% Fib retracement level at 0.9640. Read more forex trading news on our forex blog. |
| You are subscribed to email updates from Forex Trading Education : Forex Trading Blog by FOREXYARD To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment