Eur/usd - page 8
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
France and Spain Predict Improved GDP Performance in Q2
ECB’s Draghi only predicts a return to growth by the end of the year; US Dollar sheds earlier weakness…
Statements released by officials in two of the Euro-zone’s bigger economies predicted improvements in GDP performance. France Finance Minister Moscovici said today that the second quarter is likely to have seen French economic growth, while the Bank of Spain predicted that Spanish GDP shrank 0.1% in Q2. In Q1, we saw a 0.2% decline in French GDP and a 0.5% decline in Spanish GDP.
Euro-zone GDP contracted 0.2% in Q1 of this year, and ECB President Draghi predicted the region will return to growth by the end of the year. Spain and France make up about 30% of the Euro-zone’s economy. The Bank of Spain said strong exports drove the moderations of the recession.
Despite the optimistic comments, the Euro is trading slightly lower against the US Dollar in today’s session at the time of this writing. The US Dollar shed earlier weakness halfway through the European trading hours. EUR/USD is currently sitting around 1.3175, and the pair may continue to see resistance by a horizontal line near 1.3180. Support may be provided by the key 1.3000 level.
There were few releases of significance during the European session. Euro-zone consumer confidence will be released at the beginning of the North American session, -18.3 is expected. France business confidence slightly beat expectations at 95, according to today’s release.
source ...
French private sector output falls at slowest rate in 17 months
The rate of decline in French private sector output eased further in July. The Markit Flash France Composite Output Index, based on around 85% of normal monthly survey replies, posted 48.8, up from 47.4 in June. The latest reading was the highest since February 2012 and indicative of only a moderate pace of contraction.
In the service sector, business activity fell at the slowest rate for 11 months in July. In manufacturing, output increased for the first time since February 2012, and at the fastest pace for over two years.
The weaker drop in overall output across the French private sector economy reflected a similar easing in the rate of decline in new business. The latest fall in incoming new work was only modest and the slowest in 17 months. Service providers and manufacturers both signalled slower reductions in new business. Anecdotal evidence pointed to stabilising demand in certain markets, although mention continued to be made of strong competitive pressures.
full reaport ...
German Manufacturing production rises at fastest pace for 17 months in July
July data signalled a solid rebound in German private sector output growth, driven by faster rates of expansion in both manufacturing and services. At 52.8 in July, up from 50.4 in June, the seasonally adjusted Markit Flash Germany Composite Output Index indicated the strongest increase in overall business activity for five months. The headline index reflected solid readings in both the manufacturing (53.4) and service sector (52.5) during July. Growth of manufacturing output was the most marked since February 2012, while service providers pointed to the steepest rise in business activity for five months.
Higher levels of private sector output were underpinned by a return to new business expansion in July, ending a four-month period of falling levels of new work. That said, both the manufacturing and service sectors posted only moderate increases in new business volumes during the latest survey period.
In the manufacturing sector, an improvement in order books was driven by rising levels of domestic demand as new export volumes dropped for the fifth consecutive month. Anecdotal evidence from survey respondents suggested that stronger demand from the domestic construction and autos industries had helped offset subdued spending patterns among clients in China and the euro area.
full report ...
Will the UERUSD brake the 1.3242 and go up or will it go short ..........?
Is an end to Europe's misery in sight?
The latest news from the eurozone is as upbeat as it has been for 18 months. Snapshots of activity in the manufacturing and services sectors are consistent with the long recession in the single currency area – which has been entrenched for the past six quarters – coming to an end. If the evidence from purchasing managers is to be believed, Germany is looking good and France is clawing its way back to normality. A better performance by the eurozone's Big Two – accompanied by a lessening of recessionary pressure in Spain and Italy – should, with luck, eke out some growth across the region in the second half of 2013.
Analysts put the recent improvement down to the growth stimulus provided by the European Central Bank, the slower pace of austerity in 2013 compared with 2012, and the help that last year's pickup in the global economy provided to Europe's export-dependent economy.
So is this it? Are the PMIs (purchasing managers' indices) proof that an end to Europe's misery is at last in sight? The good news is that Wednesday's report was no flash in the pan: the eurozone PMIs have been improving for the past five months. It is also encouraging that the pace of job shedding is easing, given that record unemployment has been a significant drag on activity.
That said, it's far too early to start celebrating. The PMIs have signalled many a false dawn in the past and even now are a long way from signalling that a period of solid growth has resumed.
What's more, the eurozone faces plenty of headwinds. Austerity programmes – despite being less severe – will continue to be a drag on growth; the latest figures for bank lending suggest that businesses are still struggling to get access to finance; and consumer spending will be held back by unemployment in excess of 12% and falling house prices
read more ...
Will the UERUSD brake the 1.3242 and go up or will it go short ..........?
It is in a clear up trend (thanks to Bernanke). It will break it and go up - if not today some other day but that is where it is heading now
Wait for new home sales and it just might break that level then if the data will be worse than expected
Wait for new home sales and it just might break that level then if the data will be worse than expected
seems no need for worse data
trend at its best
seems no need for worse data
Or "what will Ben say next"?
They are pricing in QE3 tapering
Eurozone industry 'growing again'
Private sector industry in the eurozone returned to growth in July, according to a closely-watched survey, boosting hopes that the single currency area will soon emerge from recession.
The Markit eurozone Purchasing Managers' Index (PMI), which measures business output, was 50.4 in July. A figure above 50 indicates expansion.
July's figure was up from 48.7 in June, and marks an 18-month high.
The eurozone has been in recession since the end of 2011.
"The best PMI reading for one-and-a-half years provides encouraging evidence to suggest that the euro area could - at long last - pull out of its recession in the third quarter," said Chris Williamson, chief economist at Markit.
He said the revival in the economy was being led by a broad-based upturn in manufacturing, and signs of stabilisation in the services sector.
But he warned that employment was continuing to fall, although at a slower rate than earlier in the year.
Growth forecast
Markit's survey found that manufacturers reported the largest monthly increase in output since June 2011, and output in the sector grew for the first time since February 2012.
Service sector activity fell, but the decline was the smallest in 18 months, and Markit said the data showed signs of stabilising after "marked rates of decline" earlier in the year.
The PMI measure is based on surveys of thousands of companies across the eurozone and is regarded as a reliable indicator of economic growth.
Mr Williamson said the latest data tentatively suggested the eurozone would grow by 0.1% in the third quarter of this year.
The latest forecasts from the European Central Bank are for the eurozone economy to contract by 0.6% over 2013 as a whole, but for it to recover with growth of 1.1% in 2014.
The data revealed a continuing gap between eurozone members.
Germany continued to perform well, with steep growth in manufacturing and services, and strong job creation.
However, southern European states saw output falling, but only marginally.
source ...