Canadian Economic Growth Rate Exceeded the Expectations

December 24, 2013

This Monday the US dollar was traded with slight decrease Vs most major currencies amid weak US macro statistic data. The data of consumer confidence and personal income appeared to be worse than expected.  The Canadian dollar has continued to grow for three days at a row amid the Canadian GDP data, which exceeded the expectations. The Swiss franc strengthened amid the growth of UBS Consumption Indicator.

Personal income of the Americans increased in November by 0.2% in comparison with the previous month, which appeared to be significantly worse than expected growth by 0.4%. Personal income increased by 0.5% m/m, which appeared to be in line with the expectations. Modest income growth can bound future consumer spending, which is the major GDP component. The inflation is moderate – PCE Deflator had been the same in November for already two months comparing to the previous month – increase only by 0.1% was forecasted before.

 

Revised U. of Michigan Consumer Sentiment did not change in December comparing to the initial evaluation of 82.5 p, whereas the growth of the index to 83 p was expected. Led by gains in employment- and production-related indicators, the Chicago Fed National Activity Index (CFNAI) increased to +0.60 in November from –0.07 in October – a growth only to 0.30 was expected. The index’s three-month moving average, CFNAI-MA3, increased to +0.25 in November from +0.12 in October, marking its second consecutive reading above zero and highest reading since February 2012.

 

 

This Monday Jeffrey Lacker, the Chairman of the Federal Reserve Bank of Richmond, announced that interest rates may be increased in the beginning of 2015, though this forecast is not the final one. Meanwhile, the International Monetary Fund (IMF) announced their readiness to improve the forecast of the US economic growth for 2014, referring to economic growth acceleration in the USA, which will lead to further improvement of business climate. IMF will publish the new forecast in January.

This Monday the Canadian dollar has continued to increase for three days in a row amid the Canadian GDP data, which exceeded the expectations. Canadian economy in October increased by 0.3% m/m, whereas a growth by 0.2% was expected. The growth within the manufacturing industry segment appeared to be the highest for the recent two years. The GDP growth has been continuing for the fourth month in a row. Y-o-y growth accelerated to 2.7% from 2.4% a month earlier – it is the strongest growth from May 2012.

The Swiss franc strengthened its position amid the UBS Consumption Indicator, which in November increased to 1.43 p, comparing to 1.26 p in October. The rise was due to a higher estimation of business conditions in the retail segment in connection with Christmas trading period.

On Monday the euro tested the rate 1.37 Vs the dollar for the second day in a row. Meanwhile, Italian Consumer Confidence fell to a half a year minimum – 96.2 p Vs 98.2 p in November – whereas the growth of the indicator was expected. The pound strengthened after Bank of England Deputy Governor Andrew Bailey announced that the central bank may take actions to prevent the rapid growth of house prices in the UK.

Publication source
MasterForex information  MasterForex reviews

January 20, 2017
Advance in inflation across the Eurozone
Euro holds gains against the US Dollar ahead of the ECB rate decision, as majority of economists expect no major updates in the policy, while investors will be taking stock of Draghi rhetoric’s to foresee the timeframe of the next big move by the policymakers...
January 20, 2017
US oil inventory draw gave a temporally support for oil prices
Oil prices remained in red figures after Wednesday's bearish acceleration. Brent a little changed on the day and remained prone to more weakness on Thursday. The benchmark stayed neutral around 54.50 dollars per barrel flirting with the level during the European session...
January 20, 2017
Pound gives up gains
The British pound has pulled back sharply today after making its biggest 1day gain in nearly 20 years’ yesterday, as fears once again crept in about where Brexit will lead to...

FIBO Group Rating
XTB Rating
FxPro Rating
XM Rating
OANDA Rating
Larson&Holz IT Ltd Rating

TropicalTrade Rating
Anyoption Rating
TopOption Rating
24option Rating
Migesco Rating
EZTrader Rating