Canada’s balance of payments deficit increased in the second quarter
The overall balance of payments deficit of Canada has increased in the second quarter of this year to $ 2.6 billion to $ 11.0 billion note that the increase in this indicator continues seventh consecutive quarter. Growth of exports of goods in Canada slowed during the reporting period, while imports remained at a high level. At the same time, the positive effect of the increased inflow of foreign investment has been smoothed over the growing deficit on the import of services. Exports of goods to Canada grew by $ 1.2 billion, were significantly lower than the previous quarter. At the same time, imports increased by $ 3.7 billion due to increased imports of equipment and engineering products. News has prepared a portal on the market forex FxTeam.ru
Statistics Canada was unable to meet expectations, harriers again above 1.05
Effect on the market: 3
Statistics from Canada could not meet the expectations of economists, showing the second quarter of expansion of the negative current account surplus to 11.0 billion, compared with a deficit of 8.5 billion in the first. Market experts have assumed an average deficit of around 10.2 billion worse than the forecasts reflect the results of a large outflow of funds from the country than had been anticipated, negatively affecting the position valyuty.Pomimo this frustration, there were others. Since producer prices rose in July at 0.1%. Forecast was 0.5% after falling 0.9% in June. At the same time commodity prices soared immediately to 1,8% against the expected 0.3%. On the one hand, this may be an early indicator of future inflation. But in the current environment puts us in a situation where because of low demand, they can not raise the selling prices, but faced with rising costs. Eventually – the falling profits.
U.S. gross domestic product slightly exceeded projections, prompting impulsive demand for risky assets
Impact on the market: 3
The revised estimate of U.S. GDP showed the economy grew at 1.6% annual pace during the second quarter. It is a bit better than expected market professionals (1,4% -1,5%), but still significantly lower than previous estimates of growth in 2.4%. Moreover, in the first quarter rate was 3.7% and 5.0% in the fourth. Notice how the melting rate figures. H. Rubin in an interview said that in the third growth could further slow down to 1,1%. The second graph shows the dynamics of real GDP-linked prices. It shows that the economy is at a level in the second quarter of 2007. However, even in nominal terms, current 14570000000000. it is barely noticeable growth of the peak level of the third quarter of 2008.
The consumer climate in Germany has continued to improve on strong news on the economy
Effect on the market: 3
The indicator of consumer climate in Germany in early September rose to 4.1 from 4.0 marks in the previous month (revised from 3,9). These have coincided with market expectations, and therefore failed to impress traders. For the growth of the index are excellent news for the growth of the country, as well as employment growth above the pre-crisis levels. At the same time, the desire to buy remains stable, despite improvements in the expectations for the economy and their own income.
USD/CAD. Currency exchange rates formed a double top, followed by rapid adjustment
Drawing attention to the 4 hour chart, you will notice that the exchange rate formed a double peak (1.0650/60), then adjusted by more than 100 points …
Retail sales according to the Confederation of British manufacturers rose in August despite forecasts
According to the British Confederation of Industrialists (CBI), the balance of retail sales (Retail sales volume balance) was 35% for August compared with 33% in July. The index surpassed the expectations of analysts, forecast to reduce the balance of +23%. We add that this is the maximum value of the index since April 2007 (+44%). According to the forecast CBI, growth in retail sales will continue in the next month, and the corresponding index is estimated at +39%. British Industrialists Confederation represents the interests of some 240 000 organizations, which employs one third of the workforce of the private sector. The August review is based on the survey 133 firms.
ZEW shows growth concerns against the backdrop of the current upsurge of optimism
Impact on the market: 3
Economic sentiment in Germany fell in August, according to an index ZEW, published today. The indicator fell unexpectedly sharply to 14.0 from 21.2 a month earlier, with that expected a slight correction to 20.9 points, according to konsesus-forecast of economists surveyed Bloomberg. On the other hand, calculated in parallel assessment indicator of the current state of the economy took off immediately to 44,3 to 14,6, to consolidate their presence in the positive zone. This unexpectedly strong growth has allowed market players do not indulge in pessimism after the main news, but to continue buying the euro, touching the mark of 1.29 against the dollar. In addition, the data came out pretty good and throughout the eurozone as a whole. The overall index quite unexpectedly rose to 10,7 to 15,8 (expected to fall 10.6), and assessment of current conditions index added 14.3 points, is now at -26.5.
Inflation in Britain has fallen to a target value of 2.0% until the end of 2011
Annual consumer price index in Britain dropped to 3,1% in July. Despite the decline in prices, inflation exceeds the target value of 2.0%. The Letter of inflation, released today by the Bank of England, this is due to increase in VAT in January 2010, the recent rise in oil prices and higher prices for imports after the devaluation of the pound in mid-2007. According to the Committee on Monetary Policy Bank of England, these factors are temporary in nature and, in fact, mask the downward pressure on inflation exerted by the free capacity of the company and the labor market. However, it is difficult to quantify the impact of each of these factors, the letter says, which leads portal market forex FxTeam.ru. It is assumed that inflation will remain above the target value of 2.0% until the end of 2011, ie a year longer than predicted earlier. Saving the key rate at 0.5% and the volume of purchases of assets of the private sector by the central bank’s reserves of 200 billion pounds in the last meeting of the monetary policy was aimed primarily at maintaining the balance of risks to the inflation forecast medium term. However, the Committee is ready to "change its monetary policy in either direction, depending on how you will develop this inflation outlook."
U.S. housing market has not justified forecasts. It is time the Federal Reserve’s promise?
Impact on the market: 3
Data on the U.S. housing market showed growth began construction by 1,7% despite the projected increase of 2,0%. More – more. Permits even less, at 3.1%, though expected to fall by 0,7%. But apart from the weak relative data have been revised to a decrease in overall numbers. Thus, the annual value of permits issued was 565 thousand against 583 thousand a month earlier. The construction was even less – 546 thousand compared with the expected 560 thousand.
Japan’s GDP has grown much weaker than expectations, markets are weighing the possibility of falling USD / JPY and intervention
Effect on the market: 3
Japan’s GDP grew minimally in the second quarter, gaining only 0.1% compared to the first quarter. In the annualized growth rate of 0,4% against the projected increase of 2,3%. In addition, with 5,0% to 4,4% were revised figures for the preceding quarter. Largely as poor growth due to very low, at 0.1% annualized growth in private spending. In nominal terms, Japan’s GDP fell by 0,9%. Weak GDP figures has led to the economy of this country has given way to scale the Chinese economy.