Stockpair traders should keep an eye on these events today:
|NZD||Trade Balance (MoM) (Sep)|
|NZD||Trade Balance (YoY) (Aug)|
|EUR||GfK German Consumer Climate (Nov)|
|GBP||GDP (QoQ) (Q3)|
|GBP||GDP (YoY) (Q3)|
|USD||New Home Sales (Sep)|
Economic Data Sends Currency Markets Bouncing
October 24, 2014
Slightly stronger eurozone PMI’s economic data supported sentiment on the European equity markets today, with most indices trading slightly higher. In the US, equities opened higher too, trading almost 1% higher. German PMI for manufacturing and services was better than expected while France printed below.
The Bank of Spain said today it expected the Spanish economy to have expanded by 0.5% Q/Q in the third quarter, driven by a strong summer tourist season, and added that there were 151 000 jobs created during the quarter.
The Bank of Italy said today it expected the Italian economy to have contracted slightly in the third quarter as international tensions hit the outlook for exports, while household and business confidence dimmed. As the global focus turns to the eurozone economy and the possibility of a recession the ECB and IMF are closely monitoring European budgets. In a letter to Italian FM Padoan, EC Vice President Katainen asked Italy for answers on how it will comply with the budget rules by Friday. According to Italy’s draft budget, it doesn’t take enough measures to bring down the structural deficit fast enough. In coming weeks, Italy and the EC might clash on this subject. A similar scenario is expected for France. European equities and the euro were sold. EUR/USD dropped to the 1.2615 area but the 1.2606 support was left intact. Fortunes for the euro changed after the better than expected German manufacturing PMI. One hour later, the UK side of the story accelerated the rebound in EUR/GBP as the UK retail sales were much weaker than expected. Sales dropped 0.3% M/M, while a stabilization was expected US data were OK. Jobless claims were close to expectations. The Chicago Fed national activity index was stronger than expected.