OctaFX | OctaFX Forex Broker
Open trading account
Back

Eurozone to likely to remain stagnant - DBS

According to the DBS Research Team, the soft readings for Q4 combined with high unemployment rate and a subdued credit growth will likely keep the eurozone’s economy stagnant into this final quarter.

Key Quotes

“Nov advance composite PMI slipped to 51.4, to a 16-month low and down from 52.1 in Oct. Both manufacturing and services indices lost ground to 50.4 and 51.3 (vs Oct’s 50.6 and 52.3) respectively. The main drag was a fall in the new orders, which turned south for the first time since mid-2013. This comes de¬spite manufacturers’ opting to cut prices to attract new business, despite hurting profitability.”

“The zone’s readings put the fourth quarter on a soft footing. After peaking at 53.4 in 1Q, the PMI-manufacturing gauge has eased to 50.5 by Oct-Nov, nearing the neutral-50 mark. While PMIs are essentially sentiment surveys, these also mirror the softness in the recent hard data. Zone-wide industrial production slowed to 0.4% YoY in 3Q from 1.5% in 1Q, dragged by slower consumer dura-bles, capital and inter¬mediate goods output.”

“Pulled together with the weak household spending, still high un¬employment rate and subdued credit growth, the economy is likely to remain to stagnate into the final quarter this year. Hence, there is unlikely to be any let-up in calls for further policy support from the European Central Bank (ECB) heading into 2015.”

USD/JPY to consolidate – UOB

Analysts at UOB Group note that the pull-back from 118.98 signals the beginning of a short consolidation phase for the USD/JPY pair.
Read more Previous

JPY recovers ground as Fin Min Aso objects to high-speed decline – TradeTheNews

The TradeTheNews Team notes that Fin Min Aso’s comments of the Yen decline being too fast and the abrupt weakness or strength were unwelcome, chased bears out of the USD/JPY pair.
Read more Next
Start livechat