OctaFX | OctaFX Forex Broker
Open trading account

Forex Flash: South Korean Q1 GDP looks stronger than Q4 - Nomura

FXstreet.com (Barcelona) - Nomura economist Young Sun Kwon is expecting a modest improvement in growth and he sees no immediate need for a supplementary budget. Nevertheless, should it come, he feels that it would support GDP growth and therefore reduce the need for a rate cut.

He begins by noting that Korea´s industrial electricity consumption increased by 0.5% YoY in January and February combined following a 0.9% gain in Q4. He is now forecasting January-February Industrial output to rise by 0.7% YoY after a 0.1% drop in Q4. Seasonally adjusted industrial output should gain 2.0% MoM in February, more than offsetting the 2% decline in January. In terms of Industrial output, Young believes that this should increase further as he expects export growth (USD custom basis) to rise to 3.0% YoY in March from 0.6% in January-February combined, supported by solid demand from the US, China and South Asia. He adds that working-day adjusted daily export growth should jump to 7.6% YoY in March from 1.7% in the previous two months. From an economic perspective, he is not expecting incoming macro data to suggest the need for a supplementary budget. However, he writes, “For whatever reason, if the government formulates an extra budget, it would support GDP growth, and therefore reduce the need for a rate cut. We maintain our call for no rate cuts through 2013.”

US: Mortgage Applications fall further on March 15

US Mortgage Applications decreased 7.1% in the week ending March 15, down from the 4.7% drop registered the previous week, the Mortgage Bankers Association reported on Wednesday.
Read more Previous

Forex Flash: FOMC not expected to change pace of QE - BTMU

Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ note that the FOMC concludes its two day meeting tonight and will release its revised economic forecasts as well.
Read more Next
Start livechat