For reference, here are snapshot of the financial markets when trading closed:
We can notice that the Euro appreciated by 0.33% from mid of afternoon (Friday) to the end of the trading session (GMT+8 ).
Main reasons are the deterioration of the US trade deficit and the consumer confidence.
According to data released on Friday morning, the US trade deficit widened by 18 percent during September to $36.5 billion, the highest since January. The dynamics behind this shift weren’t necessarily bad, as the 2.9 percent growth in exports was simply overrun by a 5.8 percent surge in imports, reflecting an increase in consumption and prices.
The University of Michigan’s consumer confidence index unexpectedly fell to a three-month low of 66.0 in November from 70.6. A breakdown of the report shows declines in sentiment on both current economic conditions and the outlook, suggesting that the steady rise in the unemployment rate to 10.2 percent is bringing about more pessimism amongst consumers.
Though the euro appreciated against the US dollar on Friday, the currency fell against the rest of the other major currencies on news that the Euro-zone’s third quarter recovery wasn’t quite as robust as expected, as GDP rose by 0.4 percent from the second quarter, missing forecasts for a 0.5 percent increase. Since this was the advanced reading of the index, there was no breakdown available, but the increase was likely the result of a mild recovery in export demand. However, consumption may have remained weak, as services PMI for the region did not rise above 50 – signaling an expansion in business activity – until September.
Mots clés Technorati : Economy,Forex Rates,Financial Markets,fvtaiwan
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