Currency Comments
GBP - UK posted its Q3 GDP numbers at unchanged at 0.7%. If the growth continues at this same pace then by the end of 2006 we'll see at rateof 2.6%. Industrial Production is the 19% part of GDP is revised tothe downwards. Even though they downgraded the manufacturing sector.
EUR - Getting a solid boost from the thursdays German GDP data and better than expected German IFO numbers.
USD - So this week is worst for Dollar and even there wasnt no meaningful economic data. But next week we're going to see some of theheavyweights from Dollar land. Key data like Consumer Confidence, GDP Estimates, Existing and New Home Sales Data and Chicago PMI. Home sector is going to give us one more shock like Existing and NewHome sales data is going to come down further. But Consumer Confidenceand GDP Estimates are expected to come with the upside levels andeven Chicago PMI too. For Dollar Tuesday and as well Wednesday willbe the day for Dollar. The question is will it save the Dollar.
NZD - Kiwis Trade Balance blew out to its highest level in a year orso. Due to stronger currency led the higher imports. This number clearly tells us that the account gap will not close at anytime soon.Analyst expected at NZ$650 million but the number came at whoppingNZ$ 1.167 billion that is double of te expectations.
JPY - Board member of BoJ Fukuma said that central bank will make the cautious decision on interest rate hiking and also he clearly toldthat there will be no predetermined view. Even he said that economy isgrowing at moderate pace and we wont give any advance words on anything about rate hikes. He noted one importat thing that one need tobe very cautious on the economy growth due to sluggish domesticdemand.
EUR - Getting a solid boost from the thursdays German GDP data and better than expected German IFO numbers.
USD - So this week is worst for Dollar and even there wasnt no meaningful economic data. But next week we're going to see some of theheavyweights from Dollar land. Key data like Consumer Confidence, GDP Estimates, Existing and New Home Sales Data and Chicago PMI. Home sector is going to give us one more shock like Existing and NewHome sales data is going to come down further. But Consumer Confidenceand GDP Estimates are expected to come with the upside levels andeven Chicago PMI too. For Dollar Tuesday and as well Wednesday willbe the day for Dollar. The question is will it save the Dollar.
NZD - Kiwis Trade Balance blew out to its highest level in a year orso. Due to stronger currency led the higher imports. This number clearly tells us that the account gap will not close at anytime soon.Analyst expected at NZ$650 million but the number came at whoppingNZ$ 1.167 billion that is double of te expectations.
JPY - Board member of BoJ Fukuma said that central bank will make the cautious decision on interest rate hiking and also he clearly toldthat there will be no predetermined view. Even he said that economy isgrowing at moderate pace and we wont give any advance words on anything about rate hikes. He noted one importat thing that one need tobe very cautious on the economy growth due to sluggish domesticdemand.
posted by Naveen Pantera at 9:12 PM
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