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Posts tagged: growth

Yuan Rises as Manufacturing Growth Beats Expectations

By , July 24, 2014 12:11 pm

A fan of 50-yuan billsThe Chinese yuan advanced today after the gauge of the nation’s manufacturing sector demonstrated an increase this month which was above economists’ projections.

The HSBC Flash China Manufacturing Purchasing Managers’ Index climbed from 50.7 in June to 52.0 in July, reaching the highest level in 18 months. The actual reading was above the median forecast of 51.2. The data eased concerns about economic slowdown in China, allowing the yuan to gain ground.

USD/CNY went down from 6.1987 to 6.1949 as of 19:23 GMT today.

If you have any questions, comments or opinions regarding the Chinese Yuan, feel free to post them using the commentary form below.

Earlier News About the Chinese Yuan:

Forex News

Fading Growth Momentum Makes Britain’s Currency Less Appealing

By , July 11, 2014 1:58 pm

A fan of Great Britain 10-pound notesThe Great Britain pound slid against most of its major peers today as Forex market participants are becoming increasingly concerned that growth momentum of the UK economy is waning, making the sterling less attractive as an investment vehicle.

Britain’s currency was under pressure lately as economic indicators painted much bleaker picture of the UK economic health than they were doing before. Today’s data did nothing to improve the traders’ sentiment towards the British currency as construction output shrank 1.1 percent in May from the previous month. This reading was nowhere near the expected increase by 0.8 percent.

Most of the pound’s strength relied on investors’ confidence in resilience of Britain’s economy, and the recent reports hurt that confidence significantly. While some analysts argue that the sterling remains in a bullish trend from a long-term point of view, in a shorter term the currency definitely lost its shine.

GBP/USD fell from 1.7132 to close at 1.7121. The currency pair demonstrated the first weekly drop since May. GBP/JPY ticked down from 173.60 to 173.47. EUR/GBP was up from 0.7943 to settle at 0.7948.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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Malaysian Ringgit Profits from Signs of Growth in USA & China

By , July 4, 2014 7:50 am

100-ringgit billThe Malaysian ringgit rallied together with other Asian currencies today as signs of economic growth in the United States and China, two biggest world economies, increased risk appetite among Forex market participants.

It turned out that good employment data from the USA had an unexpectedly positive impact not only on the currency of one of the US major trading partners but on other risky currencies as well. The ringgit was one of the strongest Asian currencies this week, bested only by the Indonesian rupiah. The Malaysian currency was also supported by domestic fundamentals as analysts think that the nation’s central bank may raise interest rates for the first time in three years on the next policy meeting.

USD/MYR went down from 3.1948 to 3.1862 as of 14:50 GMT today.

If you have any questions, comments or opinions regarding the Malaysian Ringgit, feel free to post them using the commentary form below.

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NZD Dips as New Zealand Economic Growth Misses Expectations

By , June 19, 2014 3:12 am

Kiwi denominationsThe New Zealand dollar dipped today after nation’s economic growth missed analysts’ estimate. The currency halted its decline by now and actually managed to erase all losses versus the US dollar.

New Zealand gross domestic product expanded 1.0 percent in the first quarter of 2014, at the same rate as in the previous three months. Experts have predicted an increase by 1.2 percent. The kiwi is still supported by the prospects for additional interest rate hikes from the Reserve Bank of New Zealand. The New Zealand dollar was particularly resilient versus its US counterpart, which was weakened by the comments from the Federal Reserve.

NZD/USD went down from 0.8731 to 0.8705 before bouncing to the opening level as of 9:41 GMT today. NZD/JPY dropped from 88.99 to 88.84.

If you have any questions, comments or opinions regarding the New Zealand Dollar, feel free to post them using the commentary form below.

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Dollar Drops on Fed Outlook for Growth & Interest Rates

By , June 18, 2014 4:18 pm

Great Seal of the United States on one-dollar billThe US dollar fell today after the Federal Reserve trimmed its monetary stimulus but lowered the growth forecasts and predicted that interest rates will remain extremely low for a long period of time.

The Fed cut its monthly asset purchases by $ 10 billion to $ 35 billion dollar, a move that was widely expected by traders. The central bank reduced its projections for economic growth in 2014 to 2.1–2.3 percent from its previous estimate of 2.8–3.0 percent. Regarding interest rates, the Fed said:

The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee’s 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored.

Such outlook is not particularly positive for the dollar, and economic data was not helpful either. The US current account deficit widened from $ 87.3 billion the fourth quarter of last year to $ 111.2 billion in the first quarter of this year, more than was expected.

EUR/USD jumped from 1.3547 to 1.3587 as of 23:09 GMT today. GBP/USD advanced from 1.6964 to 1.6989 after touching the daily low of 1.6920. USD/JPY was down from 102.14 to 101.93, retreating from the daily maximum of 102.35.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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North Bank “in Good Position for Growth”

By , May 31, 2014 7:58 am

North Bank “in Good Position for Growth”

From Marcopolis. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Iraq’s North Bank — the largest bank in Iraq (Private) — believes in active involvement in the market, and statics show the bank as the largest in the Republic in giving loans and three times the size of its nearest competitor in terms of capitalization.

Iraq Business News praised North Bank in a recent article “as one of Iraq’s best capitalized, being one of only three to have reached the CBI’s IQD 250 billion share capital target. It has also been one of the top performing names in the Iraqi market. Adjusted for capital increases, the shares have risen by over 250 percent since 2009.”

What ‘s not to like?” Principal at Quantrarian Capital Management, Mark DeWeaver asked rhetorically.

The Sansar report added that rising credit penetration is likely to further fuel banking sector growth. “Buoyed by strong economic growth and rising credit penetration, the five largest private Iraqi banks grew aggregate net income by 207 percent between 2010-2012.

Nozad Dawood Fattah Al Jaff (pictured), Chairman of North Bank, pointed out during an interview with Marcopolis the new state of the banking market and the regional room for growth. “This market is very new and it is an open market. The size of the economy in Iraq is so big that there is room for another hundred banks to enter the market.

He added, “Competition comes if you actually get involved in the daily market business, which is the policy that North Bank is following. North Bank is the largest bank in Iraq in terms of giving loans and we surpass the second closest bank in this area by at least three times.

Al Jaff asserted, “We welcome any other banks to do business in this area.” He noted “Every bank has its own specialty and a new variety of expertise would definitely help this important sector to grow, be it in Iraq or particularly in Kurdistan.

According to Singapore-based Sansar Capital, the Iraqi banking sector ” is poised for significant earnings and asset growth over the next decade driven by a strong macro environment, increasing credit penetration and an improving security situation.” Sansar reported that for 2013 the IMF was expecting Iraqi GDP to hit a nine percent growth, after posting a strong 8.4 percent GDP for 2012.

Iraq Business News

China’s Growth Loses Momentum, Yuan Slips

By , May 28, 2014 6:03 am

A fan of 50-yuan billsThe Chinese yuan fell today, demonstrating the biggest drop since March, as the nation’s central bank set the daily fixing lowest since September due to concerns about slowing economic growth.

People’s Bank of China Governor Zhou Xiaochuan said this week that the Chinese economy is in a rare and complicated situation. Economic data gave evidences of slowing growth momentum as industrial profits increased 9.6 percent in April, compared to 10.7 percent in March. This fueled speculations that the PBoC will loosen its monetary policy.

USD/CNY went up from 6.2475 to 6.2557 as of 11:58 GMT today, reaching the high of 6.2623 intraday.

If you have any questions, comments or opinions regarding the Chinese Yuan, feel free to post them using the commentary form below.

Earlier News About the Chinese Yuan:

Forex News

Mexico’s Central Bank Downgrades Growth Forecast, Peso Mixed

By , May 21, 2014 9:38 pm

Mexican 50-peso notesThe Mexican pesos fell against the euro today after the nation’s central bank downgraded its forecast for economic growth this year. The currency managed to gain on the US dollar despite the negative news.

The Bank of Mexico revised its growth forecast for 2014 from 3–4 percent to 2.3–3.33 percent. The prediction for the next year remained unchanged at 3.2–4.2 percent. Central bank’s President Agustin Carstens was not pessimistic despite the poorer outlook, saying:

The most important part of the deceleration may have already taken place, and we expect more vigorous growth going forward.

The Mexican economy has not been able to meet expectations for the most part of the last year. Carstens explained the worse-than-expected economic performance by “a temporary bump that to a great extent reflects the slowdown in the US”.

USD/MXN was down from 12.9274 to 12.9125 as of 4:14 GMT today. EUR/MXN advanced from 17.6934 to 17.6489.

If you have any questions, comments or opinions regarding the Mexican Peso, feel free to post them using the commentary form below.

Forex News

Euro Plunges as Economic Growth of Europe Disappoints

By , May 15, 2014 10:32 am

Euro banknotes rolled upThe euro plunged today as economic growth in major European countries (with the notable exception of Germany) and the eurozone as a whole missed estimates, increasing chances for additional monetary stimulus in June. Inflation remained stable, suggesting that there is no threat of deflation for a time being. The currency trimmed its losses against some of its peers by now.

Eurozone gross domestic product expanded 0.2 percent in the first quarter of this year from the previous quarter, while euro bulls were hoping for at least 0.4 percent growth. The French economy showed no growth, while analysts predicted an increase by 0.4 percent, and the Italian economy contracted by 0.1 percent instead of rising 0.2 percent as was predicted by experts. At the same time, the German economy grew 0.8 percent, exceeding expectations of 0.7 percent growth.

Eurozone annual inflation was 0.7 percent in April up from 0.5 percent in March, matching predictions.

European Central Bank Vice President Vitor Constancio said:

We still see no distinct signs of deflation in the euro are for the time being.

Yet he also stated:

We are determined to act swiftly if required and don’t rule out further monetary policy easing.

Slow economic growth and prospects for monetary stimulus hurt the euro but it managed to recover a bit against some majors, including the dollar.

EUR/USD was down from 1.3714 to 1.3648 before bouncing to 1.3713 as of 17:38 GMT today. EUR/GBP declined from 0.8177 to 0.8166, reaching the low of 0.8143 intraday. EUR/JPY was down from 139.72 to 139.16.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Forex News

Latest Eurozone Growth Figures Don’t Slow Euro

By , May 5, 2014 11:04 am

Euro banknotes and coinsThe latest forecast from the European Commission isn’t slowing the euro down too much in Forex trading today. Even though the latest numbers for the eurozone aren’t as good as expected, the euro is still doing reasonably well today.

The European Commission just released its latest forecast for the eurozone. The 18-nation currency region isn’t expected to see the kind of growth previously planned for. Indeed, the eurozone’s inflation rate is expected to be 0.8 per cent in 2014 and 1.2 per cent in 2015. The European Commission and the ECB have a target inflation rate of 2 per cent.

Additionally, there are worries about what’s next in relations with Russia. The European Union instigated sanctions against Russia over its involvement in the crisis in Ukraine, including the acquisition of Crimea and the tensions in Eastern Ukraine. Concerns about how that could impact the eurozone, particularly in terms of energy, are also a part of the equation.

However, even with these concerns, the euro is doing reasonably well today. The 18-nation currency is up against the dollar and the pound, even though it is down against the yen.

At 15:26 GMT EUR/USD is up to 1.3879 from the open at 1.3885. EUR/GBP is up to 0.8228 from the open at 0.8224. EUR/JPY is down to 141.6945 from the open at 141.7600.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

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