Month: October 2021

Industrial Production in Germany showed a bigger-than-expected drop in August, the official data showed on Thursday, suggesting that the recovery in the manufacturing sector losing momentum. Eurozone’s economic powerhouse’s industrial output drops sharply by 4% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 0.4% drop expected and 1%
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For the first time in 7 years, the RBNZ increased the OCR by +25 bps to 0.5% in October. Policymakers pledged to tighten further in coming months as inflation pressure continues to exceed target. Policymakers remained hopeful about the economic outlook, suggesting that easing of pandemic-related restrictions could help return growth momentum. On economic developments,
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Companies shook off worries over the Covid delta variant and hired at a faster-than-expected pace in September, according to a report Wednesday from payroll processing firm ADP. Private jobs rose by 568,000 for the month, better than the Dow Jones estimate from economists of 425,000 and ahead of the downwardly revised 340,000 reading in August.
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The euro seems unable to bounce up from the 0.8500 support area. Concerns about surging inflation are weighing on the EUR. A breach of 0.8500, would expose a year-to-date low at 0.8450. The euro has ticked up against the British pound on Wednesday after having lost nearly 1.5% in a four-day reversal from last week’s high
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In opinion of FX Strategists at UOB Group, EUR/USD could still slip back to the 1.1530 region while below 1.1655. Key Quotes 24-hour view: “EUR traded between 1.1579 and 1.1622 yesterday, narrower than our expected sideway-trading range of 1.1580/1.1635. The underlying tone has weakened somewhat and EUR could drift lower but any decline is unlikely
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The RBA left the cash rate unchanged at 0.1%, and asset purchases at AUD 4B/month, in October. Despite sharp rise in housing prices, policymakers chose to stick with ultra-easy monetary policy in order to achieve the inflation target and full employment. The central bank remained cautiously optimistic about the economic outlook. Policymakers acknowledged that “the
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