EUR Starts the Week LowerFebruary 24, 2014 Posted by: Joe O'Leary
The EUR is weaker today on speculation that falling consumer prices may prompt the ECB to add monetary stimulus. China’s Yuan extended its decline after the central bank lowered it reference rate amid concerns the economy is slowing. The AUD is weaker after iron ore prices fell and reports that Chinese banks have curbed lending to property developers and related industries such as steel and cement. China is Australia’s largest trading partner for iron and other raw material. Canada’s Finance Minister says economic growth may exceed forecasts, boosted by a recovering US economy. The G20 Group pledged to maintain accommodative policies and aims to lift GDP by 2% over next five years. Economists lowered Brazil’s economic forecasted growth to 1.67% from 1.79%.
• U.S. Chicago Fed National Activity index dropped to -0.39 in January after falling to -0.03 in December
• Eurozone January HICP inflation was revised up to 0.8% y/y from 0.7% y/y reported initially and versus 0.8% y/y in December.
• ECB's Jazbec sees no deflation risks for the Eurozone. In an interview with Germany's Handelsblatt, he nevertheless stressed that officials "should take such a scenario very seriously".
• Israeli Central Bank cuts its benchmark rate to .75% to stimulate economic activity.
• U.S. Producer Sentiment Dropping in February measures of producer sentiment fell sharply, with declines in the critical new orders, production and employment components.
• NYMEX crude near $103/bbl, soft China PMI offset by cold U.S. weather
02/25 EUR: German GDP, 2nd release (Q4)
02/25 USD: S&P Case-Shiller Home Price Index Reports (Dec./Q4)
02/26 GBP: GDP, 2nd release (Q4)
02/26 USD: New Home Sales (Jan.)
02/27 EUR: Economic/Consumer/Industrial/Services Confidence Reports (Feb.)
02/27 USD: Durable Goods (Jan.)
02/28 EUR: Consumer Price Index (Feb.)
02/28 USD: GDP, 2nd release (Q4)
02/28 CAD: GDP YOY (Dec.)
02/28 USD: University of Michigan confidence. (Feb.)Read More