Recovery | Forex Blog

February 16, 2011

US Industrial Production Declines 0.1%

Filed under: OANDA News — Tags: bloomberg, forex round up, gain-momentum-, good-periods, look-pretty, primary, recovery, reducing-the, report, said-before, securities, still-quite, the-reduction-, usd, will-continue — admin @ 2:39 pm

After rising 1.2 percent in December, industrial production in the US declined by 0.1 percent in January. Warmer temperatures reducing the demand for heating was listed as the primary reason for the reduction. Despite the small decline, analysts remain upbeat that the recovery will continue to gain momentum.

“Even in good periods, you get some down months,” Mike Feroli, chief U.S. economist at JPMorgan Securities LLC in New York, said before the report. He was one of three economists in the Bloomberg survey who forecast a decline. “The trend is still quite favorable. Exports are pretty strong and inventories look pretty lean.”

Source: Bloomberg

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January 10, 2011

Dollar on the Rise

Filed under: OANDA News — Tags: another-sovereign, debt-crisis, dollar-gained, euro-meanwhile, faces-downwards, for-the, forex round up, optimism-grows, portugal, recovery, recovery-strengthened, sixth-straight, sovereign, the-past, usd — admin @ 2:27 pm

The dollar gained for the sixth straight day as optimism grows that the recovery strengthened in the past month. The euro meanwhile, faces downwards pressure as fears grow of another sovereign debt crisis in Portugal.

Source: Bloomberg

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September 7, 2010

German Factory Orders Decline in July

Filed under: OANDA News — Tags: a-0-5-percent, a-revised-3-6, a-year-earlier-, after-winning, berlin, effective-and, europe, liberal, orders-climbed, recovery, said-yesterday-, seasonal-swings, the-backing — admin @ 1:34 pm

German factory orders unexpectedly fell in July as demand in the euro region weakened, indicating the recovery in Europe’s largest economy is losing momentum.

Orders, adjusted for seasonal swings and inflation, declined 2.2 percent from June, when they surged a revised 3.6 percent, the Economy Ministry in Berlin said today. That’s the biggest drop since February 2009. Economists forecast a 0.5 percent gain, according to the median of 40 estimates in a Bloomberg News survey. From a year earlier, orders climbed 18 percent, when adjusted for working days.

Evidence of slowing growth comes after the German economy expanded at the fastest pace in two decades in the second quarter, boosted by exports. An index of manufacturing fell in August and investor confidence dropped to a 16-month low. Still, Daimler AG, the world’s second-biggest manufacturer of luxury cars, said yesterday that sales jumped in August.

Bloomberg

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August 18, 2010

UK Chancellor Warns Recovery to be “Choppy”

Filed under: OANDA News — Tags: bbc, british, chancellor, conservative, gbp, george-osborne, recovery, ruling, today-following, with-respect — admin @ 1:19 pm

In a speech to the British business community, Chancellor George Osborne said there was good reason to be “cautiously optimistic” with respect to the economy, but the recovery itself will likely be “choppy”. Osborne also affirmed that the ruling coalition led by Osborne’s Conservative party, is committed to a policy of reducing government spending in order to attack the £155bn (US$242bn) budget deficit.

Source: BBC News

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Investor Confidence Falls in Germany

Filed under: OANDA News — Tags: forex round up, had-predicted, lowest, month, recovery, ruling, sustained-for, the-current, the-second, with-respect, year — admin @ 1:11 pm

The ZEW Indicator of Economic Sentiment which measures German investor confidence fell this month on concerns that the current level of growth can not be sustained for the second half of the year. The Index fell from 21.2 in July to just 14 in August matching the lowest level since April 2009. Analysts had predicted a drop to 21 or 20.

Source: BBC News

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August 10, 2010

UK’s June Trade Deficit Narrows

Filed under: OANDA News — Tags: a-are-volatile, a-sense-there, bloomberg-news, data, economic-growth, forex round up, japan, making-exports, mervyn-king, pressure-on-the, recovery, research, royal-bank, since-the-start, two-year-high — admin @ 9:18 am

The U.K. trade deficit narrowed more than economists forecast in June as exports rose to a two-year high.

The goods-trade gap shrank to 7.4 billion pounds ($11.7 billion) from 8 billion pounds in May, the Office for National Statistics said today in London. The median of 17 forecasts in a Bloomberg News survey was for a 7.8 billion-pound deficit. Exports jumped 4.3 percent to the highest since June 2008, and imports rose 1 percent.

The pound has fallen about a quarter on a trade-weighted basis since the start of 2007, making exports more competitive. While economic growth accelerated in the second quarter, Bank of England Governor Mervyn King said there are risks from a possible euro-area slowdown. Policy makers may lower their growth forecasts tomorrow after last week maintaining emergency stimulus, according to economists in a Bloomberg News survey.

“At the margin this is a small improvement, but the data are volatile,” said Ross Walker, an economist at Royal Bank of Scotland Group Plc in London. “There are questions over how sustainable the recovery is in export markets. There’s a sense there’s been a loss of momentum.”

The pound rose as much as 0.1 percent against the dollar after the report, and was trading at $1.5820 as of 9:44 a.m.

Bloomberg

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August 4, 2010

Oil pares gains, backs off three month highs

Filed under: OANDA News — Tags: economic-data, grew-at-the, recovery, said-yesterday-, supplies-fell-, the-seven-year, the-slowest, year-earlier — admin @ 12:37 pm

Crude oil declined from a three-month high in New York before the release of economic data forecast to show that the recovery is losing steam in the U.S., the world’s second-largest energy consumer.

Oil fell for the first time in five days as equity markets retreated on speculation U.S. service industries grew at the slowest pace in five months in July. Gasoline inventories increased 2.3 million barrels last week, the American Petroleum Institute said yesterday. A government report later today may show motor fuel and crude supplies fell.

Bloomberg

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July 30, 2010

US Recession Worse Then Previously Believed

Filed under: OANDA News — Tags: 4-1-percent, commerce-department, forex round up, fourth, from-the-fourth, positive-side, recovery, the-recession, usd — admin @ 1:01 pm

Recent revisions to US GDP figures by the Commerce Department, suggest that the recession triggered in late 2007 was actually worse then previously believed. According to the latest information, the US economy actually contracted by 4.1 percent from the fourth quarter of 2007 to the second quarter of 2009. Originally, growth decline was pegged at 3.7 percent.

“We do tend to get bigger revisions at turning points in the economy,” Steven Landefeld, director of the Commerce Department’s Bureau of Economic Analysis, said in a press conference this week. On the more positive side, “in the past, we’ve tended to undershoot the recovery” as well, he said.

Source: Bloomberg

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June 24, 2010

Weaker Euro Could Boost Exports

Filed under: OANDA News — Tags: a-report-today, and-downside, cad, for-governments, forex round up, orders-rise, over-the-past, recovery, reduce-deficit, some-countries, third-month, traction-only, usd — admin @ 11:47 am

Marco Buti, head of the European Commission’s economics department, noted in a report today that a weaker euro could increase exports from the region. The euro has declined 14 percent against the dollar this year, closing yesterday at $1.2296.

“The euro-area recovery remains on track although the renewed market turbulence seen over the past two months shows that uncertainty and downside risks remain high,” Marco Buti noted. “Near-term growth prospects remain rather subdued, with the recovery gaining traction only towards the end of this year and into next,” he added.

Source: Bloomberg

See also: European Industrial Orders Rise for Third Month, Boosted by Weakening Euro

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June 23, 2010

G20 Memo Says “No Room for Complacency”

Filed under: OANDA News — Tags: cad, chf, eur, out-strongly, press, recovery, spending-until, weekend, with-the-global — admin @ 1:19 pm

A leaked memo for the Group of 20 meeting in Toronto this weekend, says there is “no room for complacency” when it comes to dealing with the global economic crisis. Describing the recovery as “uneven and fragile”, the memo warns that “fiscal challenges in many states are creating market volatility, and could seriously threaten the recovery and weaken prospects for long-term growth.”

There is also much debate with respect to the continuation of stimulus spending. The US has come out strongly in favor of continued and coordinated spending until the recovery gains a stronger foothold. Germany on the other hand, recently brought in a budget with record spending cuts and is committed to drastically reduce government debt loads.

Source: Reuters

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