Forex Blog

August 25, 2010

US Durable Goods Orders Disappoint

Orders for durable goods increased by just 0.3 percent in July providing further evidence that the pace of recovery in the US is slowing. Analysts had predicted an increase of 3 percent.

“This overall loss of momentum is noticeable, measurable and it’s cause for concern,” said Robert Dye, a senior economist at PNC Financial Services Group Inc. in Pittsburgh, whose forecast was the lowest among those surveyed. “Manufacturing is still leading the recovery, but not nearly with as much vigor as earlier.”

Source: Bloomberg

Surprise Rise in German Business Confidence

An increase in the Ifo Business Climate Index which measures the confidence level of German businesses, caught market watchers by surprise, rising to 106.9, up from 106.2 in July. Most analysts predicted a decrease in the index.

The news of German confidence has strengthened the European currency. The euro is currently 0.2% higher against the dollar with one euro buying $1.26. It also rose slightly against the pound, to 82 pence, making the pound worth 1.2177 euros.

Source: BBC News

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