Eur/usd - page 61
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Eurozone Industrial Output Growth Tops Expectations
Eurozone industrial production recovered at a faster than expected pace in November, a report from Eurostat revealed Tuesday.
Industrial production increased 1.8 percent in November from October, when it was down by 0.8 percent. Economists were expecting an increase in production to 1.4 percent.
Production of capital goods and durable consumer goods increased 3 percent and 2.2 percent, respectively. Output of non-durable consumer goods rose 1.4 percent and energy output grew 1.8 percent. Intermediate goods logged the lowest growth of 1 percent.
Year-on-year, industrial production growth accelerated to 3 percent in November from 0.5 percent in October. The rate was well above the 1.8 percent rise forecast by economists.
source
ECB's Nowotny Sees Eurozone Growth Exceeding Expectations In 2014
European Central Bank Governing Council member Ewald Nowotny said economic growth in the euro area is likely to exceed expectations this year.
The ECB expects the 18-nation currency bloc to grow 1.1 percent this year.
"There is even potential on the upside," Nowotny said. The stronger economies like Germany and Austria might register 2 percent growth, he said at a Euromoney conference in Vienna.
Nowotny, who also heads Austria's central bank said, "We are still cautious."
Further, he said there is no threat of inflation or deflation over the medium term in the region.
source
Eurozone Industrial Production Grows Most Since May 2010
Industrial production in the euro area staged a better-than-expected recovery in November, rising at the fastest pace in more than three years, and eased concerns over the sluggish pace of the recovery as well as boosted the outlook for the 18-nation economy.
Data published by the Eurostat on Tuesday showed that industrial output in the currency bloc advanced a seasonally adjusted 1.8 percent in November from a month earlier, after falling for two months in a row. The increase was the biggest since May 2010, when production grew 2 percent.
In October, production had recorded a 0.8 percent fall, which was revised up from 1.1 percent. Economists were looking a 1.4 percent growth for November.
Within industrial sub-sectors, production of capital goods and durable consumer goods increased 3 percent and 2.2 percent respectively. Output of non-durable consumer goods rose 1.4 percent, and energy production grew by 1.8 percent. There was a 1 percent gain in intermediate goods production.
Among the EU states, the highest increases were registered in Ireland, Sweden, Malta, Croatia, the Netherlands and Germany. The largest decreases were recorded in Lithuania, Denmark and Greece.
Year-on-year, industrial production advanced 3 percent in November, which was notably faster than the previous month's upwardly revised 0.5 percent gain. Economists had expected production to grow 1.8 percent, following October's originally reported 0.2 percent rise.
"While November's euro-zone industrial production figures provided hope that the economy regained a bit of momentum towards the end of last year, they don't negate the need for more policy action from the ECB," Jonathan Loynes, an economist at Capital Economics said.
According to Loynes, the ECB has more work to do over the coming months - in the form of further cuts in interest rates and/or asset purchases - to try to weaken the currency and support the recovery.
Underscoring today's industrial data, the latest purchasing managers' survey compiled by Markit Economics showed that the Eurozone manufacturing sector expanded for the third successive month in December. The European Commission last week said that economic confidence in the bloc strengthened more-than-expected to a 29-month high in December.
In the third quarter, Eurozone's economic growth eased to 0.1 percent from 0.3 percent in the three months to June, when the economy exited its longest ever recession. Data came out recently points to sluggish recovery amid deflationary risks and high unemployment.
At this month's meeting, the European Central Bank kept its key interest rate unchanged at a record low of 0.25 percent, as it battles deflationary tendencies.
source
Recession-weary Italians catch nostalgia for lira
Twelve years since Italy introduced the euro, the national mint is still stamping Italian lire - and recession fatigue means nostalgia for the retired national currency is going strong.
For Italy, one of the world's biggest government debtors, the price of sharing a currency strengthened by economies like Germany's has been years of budget cuts, tax hikes and economic stagnation.
Now Italians are snapping up gold and silver reproductions of their old currency. Publisher Editalia, majority-owned by the Italian mint, says sales of its coin and commemorative book collections reached more than 25 million euros ($34 million) last year.
The lira may have brought double-digit inflation, but its frequent devaluations boosted Italy's exports - and meant the government could always repay its lira debts.
The success of Editalia's reproduction lira coins and illustrated books about their history reflects widespread nostalgia for a currency first used in 1861 and whose notes once featured sculptor Lorenzo Bernini, painter Caravaggio and inventor Guglielmo Marconi.
But it also reflects Italians' growing dismay - if accompanied by begrudging acceptance - at how the country has fared since it joined the euro. Though Italy's economic woes - high debt, low growth and an inefficient public sector - predate the euro's launch, many people feel betrayed by promises that sharing a European currency would boost their living standards.
Instead, Italy's economy is now smaller than it was when euro coins and notes first appeared in tills. Unemployment has risen, and the country is struggling to emerge from its worst recession since World War II.
read more
ECB Eases European Bank Stress Test By 25%, Lowers Capital Ratio Requirement From 8%
First the Volcker Rule was defanged when last night the requirement to offload TruPS CDOs was eliminated, and now here comes Europe where the ECB just lowered the capital requirement for its "stringent" bank stress test (the one where Bankia and Dexia won't pass with flying colors we assume) by 25%. From the wires:
The final number may in fact be even lower:
Why is this notable? Recall from three short months ago:
Apparently you don't, but who cares as long as the myth of strong European bank balance sheets is perpetuated. And should the capital requirement be lowered even more, expect politicians and central bankers to bang the drums even louder on just how stable the European financial system is.
source
German GDP Growth Moderates In 2013
Recession in some European countries together with slow global growth dampened Germany's economic growth in 2013. Despite experiencing a deceleration, the largest euro area economy expanded for the fourth consecutive year.
Gross domestic product grew 0.4 percent in 2013, which was slower than a 0.7 percent rise in 2012 and a 3.3 percent increase in 2011, the latest figures from the Federal Statistical Office showed Wednesday.
The full-year estimate was below 0.5 percent forecast by economists.
"Obviously, the German economy suffered from the continuing recession in some European countries and from restrained growth of the global economy," Roderich Egeler, President of the Federal Statistical Office said at a press conference in Berlin.
"The strong domestic demand could offset those factors only to a limited extent".
The economy is estimated to have expanded 0.25 percent in the fourth quarter of 2013, according to the statistical office. GDP rose 0.3 percent in the third quarter. The fourth quarter results are due on February 14.
Joerg Kraemer, chief economist at Commerzbank, said the expansion will probably continue at a similar pace in the first quarter of this year and he expects 1.7 percent growth for the whole year of 2014.
Bundesbank forecasts growth to rise to 1.7 percent in 2014 and to 2 percent in 2015.
Household final consumption expenditure rose 0.9 percent in 2013, while government final consumption expenditure rose 1.1 percent. Gross fixed capital formation, however, decreased 0.8 percent.
German foreign trade, which generally is very robust, was less dynamic on an annual average in 2013. Exports grew only 0.6 percent, while imports increased by 1.3 percent.
The country recorded a fiscal deficit of 0.1 percent of GDP in 2013 in contrast to expectations for a balanced budget, data from the German finance ministry today showed.
Net borrowing came in at EUR 22.1 billion in 2013, which was below the targeted borrowing of EUR 25.1 billion. Expenditure was lower than the estimate by 2.2 percent and revenues by 0.8 percent.
source
Eurozone Inflation Slows As Estimated In December
Eurozone inflation eased to 0.8 percent as initially estimated in December, according to final data from Eurostat, released Thursday. The rate was down from 0.9 percent in November.
Inflation has stayed below the European Central Bank's target of 'below, but close to 2 percent' for the eleventh consecutive month.
Monthly inflation was 0.3 percent in December.
Excluding energy, food, alcohol and tobacco, core inflation eased to 0.7 percent from 0.9 percent in November. The core rate also matched flash estimate published on January 7.
Greece posted the sharpest annual fall, down 1.8 percent, followed by Cyprus with 1.3 percent decline. Estonia and Austria registered the highest growth of 2 percent.
source
Industry Group Sees 2014 German Growth At 2%
Germany's economy is set to expand at least 2 percent this year, Ulrich Grillo, chief of the Federation of German Industry (BDI) said on Thursday.
The easing pressures in the global economy and the gradual exit of the euro area from a recession are all helpful for German exports, Grillo said. Further, he noted that higher wages, low inflation expectations and good labor market prospects bode well for the economy.
Figures released by Destatis this week showed that German growth slowed for a a third successive year in 2013. The biggest euro area economy grew just 0.4 percent last year, which was slower than the 0.7 percent expansion in 2012.
Elsewhere today, survey data from the German Farmers Association (DBV) showed that the sentiment in the agricultural sector improved in December compared to the previous three months.
The index measuring farmers' confidence rose to 37.3 points from 35.5 points in September. Confidence improved for a second consecutive quarter and the latest score was the highest since December 2007, when the score was 39.4.
source
EUR/USD edges down but losses seen limited
The euro edged lower against the U.S. dollar on Friday, as the greenback regained some ground after Thursday's mixed U.S. economic reports sent it broadly lower.
EUR/USD hit 1.3583 during late Asian trade, the session low; the pair subsequently consolidated at 1.3602, slipping 0.12%.
The pair was likely to find support at 1.3549, the low of January 9 and resistance at 1.3674, the high of January 15.
The greenback came under pressure on Thursday after the Department of Labor said the number of people filing continuing unemployment claims rose back over three million to 3.03 million, up from 2.85 million, in the week to January 4.
U.S. employment data is being closely watched by investors since the latest nonfarm payrolls report showed that the economy added just 74,000 news jobs last month, well below expectations for 196,000.
However, the number of initial jobless claims fell by 2,000 last week to a six-week low of 326,000.
A separate report showed that the annual rate of consumer inflation in the U.S. rose 1.5% in December, up from 1.2% in November. Consumer prices were 0.3% higher from a month earlier.
read more
I think the data is too mixed right now for EURUSD. We are hearing both good and bad things out of Eurozone and US. I expect that price will range for the next couple of months