Forex News from InstaForex

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China's Industrial Output Rises, Retail Sales Fall

China's industrial production growth accelerated and retail sales decreased at a slower pace in May, data from the National Bureau of Statistics showed Monday. Industrial production grew 4.4 percent on a yearly basis in May, faster than the 3.9 percent increase logged in April. Economists had forecast a 5 percent rise. Retail sales dropped at a slower pace of 2.8 percent in May from last year, slower than the 7.5 percent decrease seen in April. Sales were forecast to fall 2 percent. During January to May, fixed asset investment decreased 6.3 percent from the same period of last year. Economists had forecast a 5.9 percent fall. The People's Bank of China injected CNY 200 billion funds into the financial system via medium-term lending facility at a rate of 2.95 percent, unchanged from previous operation. News are provided by InstaForex.

 

[InstaForex Gertrude]

Euro Little Changed After Eurozone Trade Data

At 5.00 am ET Monday, Eurostat has published euro area foreign trade figures for April. The euro changed little against its major rivals after the data. The euro was trading at 120.83 against the yen, 1.1261 against the greenback, 1.0708 against the franc and 0.8981 against the pound around 5:05 am ET. News are provided by InstaForex.

 

[InstaForex Gertrude]

New Zealand Has NZ$1.6 Billion Current Account Shortfall

New Zealand had a seasonally adjusted current account deficit of NZ$1.6 billion in the first quarter of 2020, Statistics New Zealand said on Wednesday.

That missed expectations for a surplus of NZ$1.482 billion but was an improvement over the NZ$2.66 billion shortfall in the three months prior.

The seasonally adjusted goods deficit narrowed to NZ$213 million, while the services surplus narrowed to NZ$983 million.

The primary income deficit widened to NZ$2.2 billion and the financial account recorded a net outflow of NZ$7.7 billion.

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[InstaForex Gertrude]

European Economics Preview: Bank Of England Rate Decision Due

Monetary policy meetings of the Bank of England and Swiss National Bank are due on Thursday, headlining a busy day for European economic news.

Economists widely expect the monetary policy committee of the BoE to expand its quantitative easing by at least GBP 100 billion from the current size of GBP 645 billion. The interest rate is expected to remain at a record low 0.1 percent.

The BoE is scheduled to release its summary and the minutes of the meeting at 7.00 am ET.

The Swiss National Bank is expected to hold its policy rate and interest on sight deposits at -0.75 percent. The announcement is due at 3.30 am ET.

At 4.00 am ET, Italy's Istat is slated to release foreign trade data for April.

At 4.00 am ET, Norges Bank announces its rate decision. In the meantime, Statistics Poland publishes employment growth data for May.

At 5.00 am ET, the Hellenic Statistical Authority publishes unemployment data for March.

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[InstaForex Gertrude]

Australia Retail Sales Rebound At Record Pace In May

Australia's retail sales expanded in May at the fastest pace in the 38 year history of the series, after the easing of coronavirus containment measures, data from the Australian Bureau of Statistics showed Friday.

Retail sales grew by 16.3 percent on a monthly basis in May, the biggest on record, following a record decline of 17.7 percent in April.

Turnover rose 5.3 percent from the same period last year.

There were large increases in turnover in clothing, footwear and personal accessory retailing and cafes, restaurants and takeaway food services, as restrictions eased throughout the month.

Data showed that the monthly rise in clothing, footwear and personal accessory retailing exceeded 100 percent but remained more than 20 percent from last year.

Food retailing rose 7.2 percent from April. At the same time, perishable goods turnover advanced 7.0 percent and non-perishable goods turnover gained 3.8 percent. and All other products turnover gained 5.8 percent in May.

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China Leaves Benchmark Lending Rates Unchanged

China left its benchmark lending rates unchanged for the second straight month despite the economy struggling to recover from the impact of the coronavirus crisis.

The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate was maintained at 4.65 percent.

The one-year and five-year loan prime rates were last reduced in April. The one-year loan prime rate was lowered by 20 basis points and five-year rate by 10 basis points in April.

The loan prime rate is fixed monthly based on the submission of 18 banks, though Beijing has influence over the rate-setting. This new lending rate replaced the central bank's traditional benchmark lending rate in August 2019.

Last week, the People's Bank of China injected CNY 200 billion funds into the financial system via medium-term lending facility at a rate of 2.95 percent, unchanged from the previous operation.

With fiscal stimulus ramping up and economic recovery well underway, the PBoC appears to see less of a need to encourage stronger private borrowing, Julian Evans-Pritchard, an economist at Capital Economics, said.

Broad credit growth still looks set to accelerate further in the coming quarters. But short-term interest rates are unlikely to decline much further, the economist noted.

Iris Pang, an ING economist said she is looking for a targeted RRR cut this week, by 0.5 percentage points for some banks on the specific requirement to use the liquidity for small and medium sized enterprises.

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Japan Manufacturing PMI Sinks To 28.9 In June - Jibun Bank

The manufacturing sector in Japan continued to contract in June, and ay a faster rate, the latest survey from Jibun Bank revealed on Tuesday with a manufacturing PMI score of 28.9.

That's down from 30.3 in May, and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.

Individually, output, new orders, new export orders, employment, backlogs, output prices, input prices and future output all continued to contract.

The data also showed that Japan's services PMI came in at 42.3 in June, up from 26.5 in the previous month. The composite index had a score of 27.8, down from 37.9 a month earlier.

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[InstaForex Gertrude]

European Economics Preview: German Ifo Business Confidence Data Due

Business sentiment survey results from Germany and France are due on Wednesday, headlining a light day for the European economic news.

At 2.00 am ET, Statistics Norway releases unemployment data for April. The jobless rate is expected to rise to 3.8 percent in April.

At 2.45 am ET, France's statistical office Insee is scheduled to issue business confidence survey results. The sentiment index is forecast to rise to 80 in June from 70 in May.

At 3.00 am ET, manufacturing confidence survey data is due from Sweden and Turkey.

At 4.00 am ET, Germany's ifo Institute is scheduled to publish business sentiment survey results for June. Economists forecast the business climate index to rise to 85.0 in June from 79.5 a month ago.

In the meantime, unemployment data is due from Poland. The jobless rate is expected to rise to 6.1 percent in May from 5.8 percent in April.

At 8.30 am ET, the Czech National Bank announces its interest rate decision. Economist forecast the bank to hold its key rate at 0.25 percent.

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[InstaForex Gertrude]

New Zealand Trade Surplus NZ$1.3 Billion In May

New Zealand posted a merchandise trade surplus of NZ$1.3 billion in May, Statistics New Zealand said on Thursday - following the NZ$1.267 billion surplus in April.

Exports were down an annual 6.1 percent or NZ$350 million to NZ$5.39 billion.

Imports plummeted 25.6 percent or NZ$1.4 billion to NZ$4.14 billion.

In the year ended May 2020, exports gained 1.3 percent or NZ$0.8 billion to NZ$60.1 billion. Imports fell 5.4 percent or NZ$3.5 billion to NZ$61.4 billion - resulting in a trade deficit of NZ$1.3 billion.

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[InstaForex Gertrude]

European Economics Preview: France Consumer Confidence Data Due

Consumer sentiment survey results from France are due on Friday, headlining a light day for the European economic news.

At 2.00 am ET, May import price data is due from Germany. Prices had decreased 7.4 percent annually in April.

At 2.45 am ET, France's statistical office Insee publishes consumer sentiment survey data. The indicator is expected to rise to 95 in June from 93 in May.

At 3.00 am ET, European Central Bank President Christine Lagarde is set to speak at an online summit organized by the European Business Leaders' Convention.

In the meantime, retail sales data from Spain is due. Economists forecast sales to fall 17.6 percent annually in May, following a 31.6 percent decrease in April.

Half an hour later, Statistics Sweden is set to issue retail sales and producer prices for May. Economists forecast sales to fall 2.1 percent on month, in contrast to an increase of 0.2 percent in April.

At 4.00 am ET, private sector credit data from euro area and manufacturing Purchasing Managers' survey results are due from Austria.

At 5.00 am ET, Italy's Istat is set to release business confidence survey data. The business sentiment index is expected to rise to 80 in June from 71.2 in May.

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[InstaForex Gertrude]

New Zealand ANZ Business Sentiment Rises Less Than Estimated New Zealand business sentiment improved less than estimated in June, final data from ANZ showed on Tuesday. The business confidence index rose to -34.4 in June from -41.8 in May. However, the score was weaker the preliminary estimate of -33.0. ANZ said a vigorous bounce out of lockdown was evident in the numbers, but the levels were consistent with the assessment that the recession is just starting. "It is encouraging to see a bounce in sentiment in the retail sector, and these tallies with anecdotes we are hearing about households rushing out to spend the involuntary savings accumulated during lockdown, as well as the money that had been squirreled away, earmarked for an overseas holiday," ANZ said. News are provided by InstaForex

 

[InstaForex Gertrude]

UK Shop Prices Continues To Fall In June: BRC

UK shop prices declined for the thirteenth straight month in June but the pace of decrease slowed, data from the British Retail Consortium showed Wednesday.

The BRC-Nielsen shop price index declined 1.6 percent in June.

Although consumers benefited from the decline in shop prices, the situation for many retailers, such as those in clothing and footwear remains very challenging, Helen Dickinson, chief executive at BRC, said.

"Coronavirus has been a huge shock to the retail industry and coming on top of this, the threat of the UK leaving the EU without a trade deal is a real concern as it would lead to severe disruptions to supply chains, far beyond those experienced during lockdown, resulting in higher prices and reduced availability in shops," Dickinson added.

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[InstaForex Gertrude]

European Economics Preview: Eurozone Unemployment Data Due

Unemployment data from euro area is due on Thursday, headlining a light day for the European economic news.

At 3.00 am ET, Spain's unemployment data for June is due. The number of people out of work had increased 26,600 in May.

In the meantime, the Hungarian Central Statistical Office is scheduled to release foreign trade figures for April.

At 4.00 am ET, unemployment data is due from Italy. Economists forecast the jobless rate to climb to 7.7 percent in May from 6.3 percent in April. At 5.00 am ET, Eurostat is scheduled to release euro area unemployment and producer price data. The jobless rate is expected to rise to 7.7 percent in May from 7.3 percent in April.

Eurozone producer prices are forecast to decline 4.8 percent annually, faster than the 4.5 percent drop seen in April.

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[InstaForex Gertrude]

China's Service Sector Grows Most Since 2010 China's service sector expanded at the fastest pace in more than a decade in June, driven by strong orders as measures related to the coronavirus pandemic were relaxed, survey data from IHS Markit showed Friday. The Caixin services Purchasing Managers' Index rose to 58.4 in June from 55.0 in May. The rate of expansion was the fastest since April 2010. A score above 50 indicates expansion in the sector. Total new orders advanced at the quickest pace since August 2010 driven by improving market conditions and new export work expanded for the first time since January. Firms widely reported that overall market conditions had continued to improve following an easing of measures related to the coronavirus disease 2019 pandemic. Nonetheless, service providers reported another fall in workforce numbers. As new business increased, outstanding workloads logged a renewed rise in June. On the price front, the survey showed a slight drop in input prices at the end of the second quarter. At the same time, prices charged by services companies were broadly unchanged in June, thereby ending a six-month period of decline. Service providers expressed stronger optimism towards the 12-month outlook for business activity in June. The composite output index rose to 55.7 in June from 54.5 in May, to signal a sharp and accelerated increase in overall Chinese business activity. "Although businesses were optimistic about the economic outlook, they remained cautious about increasing hiring, with employment in both the manufacturing and services sectors shrinking," Wang Zhe, a senior economist at Caixin Insight Group said. Addressing the employment problem requires not only macro policies to further promote work resumption, but also more targeted relief measures introduced by governments to tide companies over, said Wang. News are provided by InstaForex

 

[InstaForex Gertrude]

Hong Kong Private Sector PMI Improves To 49.6 In June - IHS Markit The private sector in Hong Kong continued to contract in June, albeit at a much slower rate, the latest survey from IHS Markey revealed on Monday with a PMI score of 49.6. That's up from 43.9 in May, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. Individually, output and new orders fell at the slowest rate in more than two years. Employment levels were broadly stable and input cost inflation returned. Firms were less pessimistic about the year-ahead outlook during June than in May, with confidence rising to a five-month high. News are provided by InstaForex

 

[InstaForex Gertrude]

Australia Keeps Interest Rate, QE Unchanged Australia's central bank maintained its key interest rate and the target yield on three-year government bonds unchanged on Tuesday. The board of Reserve Bank of Australia, governed by Philip Lowe, decided to maintain cash rate and the targeted yield on three-year government bonds of 25 basis points. The bank said it is prepared to scale-up its bond purchases again and will do whatever is necessary to ensure bond markets remain functional and to achieve the yield target for 3-year Australian government securities. The RBA had reduced the key interest rate to the current record low of 0.25 percent at the March meeting. Also in March, the bank had introduced asset purchase programme to combat the downturn caused by the pandemic. As the economy is going through a very difficult period, it is likely that fiscal and monetary support will be required for some time, the bank said. News are provided by InstaForex

 

[InstaForex Gertrude]

European Economics Preview: Germany Foreign Trade Data Due Foreign trade data from Germany is due on Thursday, headlining light day for the European economic news. At 2.00 am ET, Destatis is scheduled to publish Germany's foreign trade figures for May. Exports are forecast to grow 13.8 percent and imports to rise 12 percent on a monthly basis. The trade surplus is seen at EUR 5.2 billion versus EUR 3.2 billion in April. In the meantime, Finland's external trade data for May is due. At 3.00 am ET, foreign trade data is due from Hungary. The trade deficit is expected to narrow to EUR 281 million from EUR 561 million in April. At 5.00 am ET, Greece unemployment data for April is due. At 6.00 am ET, the Central Statistics Office publishes Ireland's consumer prices for June. Prices had decreased 0.5 percent on year in May. News are provided by InstaForex

 

[InstaForex Gertrude]

European Economics Preview: France Industrial Production Data Due

Industrial production from France is due on Friday, headlining a light day for the European economic news.

At 2.00 am ET, Statistics Norway publishes consumer and producer prices for June. Inflation is expected to rise slightly to 1.4 percent from 1.3 percent in May.

In the meantime, foreign trade and consumer prices from Romania are due. At 2.45 am ET, France's statistical office Insee is slated to release industrial production for May. Economists forecast industrial output to grow 15.1 percent month-on-month in May, reversing a 20.1 percent fall in April.

At 3.00 am ET, the Czech Statistical Office releases consumer prices for June. Inflation is forecast to remain unchanged at 2.9 percent.

At 4.00 am ET, Italy's Istat publishes industrial production data for May. Economists forecast production to climb 22.8 percent on month, reversing a 19.1 percent drop in April.

At 5.00 am ET, consumer prices and industrial output data is due from Greece.

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[InstaForex Gertrude]

New Zealand Food Prices Gain 0.4% In June

Food prices in New Zealand were up a seasonally adjusted 0.4 percent on month in June, Statistics New Zealand said on Monday.

Unadjusted prices rose 0.5 percent on month. Individually, fruit and vegetable prices rose 3.9 percent (up 0.8 percent after seasonal adjustment), while meat, poultry, and fish prices rose 0.9 percent, grocery food prices fell 0.5 percent (down 0.2 percent after seasonal adjustment), non-alcoholic beverage prices fell 1.1 percent and restaurant meals and ready-to-eat food prices rose 0.4 percent.

On a yearly basis, food prices climbed 4.1 percent - accelerating from 2.9 percent in the previous month.

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[InstaForex Gertrude]

Singapore GDP Plummets 41.2% On Quarter In Q2

Singapore's gross domestic product tumbled a seasonally adjusted 41.2 percent on quarter in the second quarter of 2020, the Ministry of Trade and Industry said in Tuesday's advance estimate.

That missed forecasts for a drop of 37.4 percent following the upwardly revised 3.3 percent contraction in the previous three months (originally -4.7 percent).

On a yearly basis, Singapore's GDP sank 12.6 percent - again shy of expectations for 10.5 percent following the upwardly revised 0.3 percent fall in the three months prior (originally -0.7 percent).

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