Eurozone

German growth highest since 2014 but may not hold according to ZEW survey

Posted on May 24, 2016 at 11:15 am GMT

Germany’s economy expanded at the fastest pace in two years in the first three months of the year. GDP growth was confirmed at 0.7% quarter-on-quarter during the January-March period according to the second estimate released today. This represents a marked improvement on the average rate of 0.3% seen in 2015. Growth was led by private consumption and construction investment, which contributed 0.2% each to the GDP growth in the first quarter. Also making a strong contribution was higher government spending [..]

Eurozone PMI disappoints in May; euro tests 1.12 dollars

Posted on May 23, 2016 at 10:02 am GMT

Activity in the euro area slowed slightly to a 16-month low in May according to the flash reading of Markit’s composite PMI. The composite PMI, which comprises both the manufacturing and services sectors, fell slightly to 52.9 in May from 53.0 in April. The figure is below forecasts that it would rise to 53.2. The PMI figures for April and May are pointing to slower growth across the Eurozone in the second quarter of the year so far. At the [..]

Week Ahead – Busy week for PMI and GDP data; Fed speakers also eyed

Posted on May 20, 2016 at 12:55 pm GMT

Preliminary PMI readings for the Eurozone will be among the main data releases of the coming week along with second estimate GDP for the first quarter for the UK, the US and Germany, as well as Japanese inflation. The US calendar will be the busiest with housing data and durable goods orders also due. However, upcoming speeches from several Fed officials could attract more attention given the recent strong signals coming from the Fed lately on a possible June/July rate [..]

Week Ahead – Inflation data to dominate but Japan GDP also to be watched

Posted on May 13, 2016 at 1:08 pm GMT

Inflation data will dominate over the coming week as the UK and the US will release April CPI figures, while the Eurozone will publish its final CPI readings. The UK will remain in focus with the release of retail sales and unemployment numbers but Japanese GDP data could prove to be the biggest market mover as it is likely to influence Bank of Japan policy. Flurry of UK data may get side-lined by Brexit developments Following the Bank of England’s [..]

European Session – Dollar boosted by strong US data but euro and pound sag

Posted on May 4, 2016 at 3:07 pm GMT

Markets continued to be short on risk appetite on Wednesday as commodity currencies remained under pressure even as the dollar retreated from earlier gains. Major European indices were in the red again as traders turned gloomy on the outlook for global growth. The negative sentiment was heightened further by disappointing European PMI numbers out earlier today. The final reading of the Eurozone services PMI was revised lower from 53.2 to 53.1 in April, while the composite PMI was left unchanged [..]

Asian Session – Aussie drops after RBA rate cut; US dollar under pressure

Posted on May 3, 2016 at 8:02 am GMT

The Reserve Bank of Australia surprised markets with a rate cut while the US dollar continued to drop to multi-month lows against other major currencies during Tuesday’s Asian trading. The aussie dropped more than 1 cent versus the US dollar following the RBA’s announcement; from the 77 cents’ level down to below 76. The previous week’s weaker-than-expected inflation rate for the first quarter played a key part in the bank’s decision, as persistently low inflation in previous months as well [..]

European Session – Gold, oil hit fresh 2016 highs as dollar continues to slide

Posted on April 29, 2016 at 3:20 pm GMT

Commodities were bolstered on Friday from the weakening US dollar as soft consumer spending and inflation data reinforced expectations that the Federal Reserve will not be required to raise interest rates anytime soon. The dollar index, which measures the value of the US currency against a basket of currencies, hit an 8-month low and was down 0.7% at 93.09 in late European session. This helped crude oil to climb to fresh yearly highs, with US crude hitting $46.78 a barrel [..]

Week Ahead – PMI data and US NFP to dominate; RBA meeting also eyed

Posted on April 29, 2016 at 1:15 pm GMT

The coming week will be a busy one for PMI data as China and the UK will see the first and only PMI releases for April, while for the Eurozone and the US, the final readings are due. Also in focus next week is the non-farm payrolls report in the United States as well as the RBA’s scheduled policy meeting. China PMI expected to improve further Manufacturing activity in China has been on a downward trend since the middle of [..]

Week Ahead – Fed and BoJ to set the tone; RBNZ and preliminary GPD also eyed

Posted on April 22, 2016 at 12:44 pm GMT

It will be a busy seven days in the coming week as the Fed and the Bank of Japan hold their respective monetary policy meetings. The US and Japan will also dominate the economic calendar with some key indicators expected next week, while UK GDP, Eurozone flash inflation and the RBNZ’s policy meeting will also be watched. Eurozone inflation in focus post ECB German Ifo data will start the week on Monday and after this week’s disappointing Markit PMI surveys, [..]

ECB keeps policy unchanged; Draghi on the defensive of ECB measures

Posted on April 21, 2016 at 3:02 pm GMT

The European Central Bank concluded its two-day policy meeting today by keeping monetary policy unchanged. The move was widely expected given the comprehensive measures announced at the Bank’s last meeting in March when it cut all its main rates and expanded its bond buying program by €20 billion a month. In the accompanying statement, the ECB maintained that the risks to the outlook for growth remain to the downside. But it pointed to an improvement in financing conditions as a [..]

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