U.S. Consumer Sentiment Unexpectedly Improves In January

Trading 31 jan 2020 Commentaire »

Revised data released by the University of Michigan on Friday showed U.S. consumer sentiment unexpectedly improved in the month of January compared to the previously reported deterioration.

The consumer sentiment index for January was upwardly revised to 99.8 from the preliminary reading of 99.1. The index is now up from the final December reading of 99.3.

The upward revision came as a surprise to economists, who had expected the consumer sentiment index to be unrevised at 99.1.

Surveys of Consumers chief economist Richard Curtin noted the January reading is insignificantly below the cyclical peak of 101.4.

"The maintenance of consumer sentiment near cyclical peak levels is surprising given the overall slow pace of economic growth, which was accompanied in January by renewed military engagements in the Mideast, an impeachment trial in the Senate, and a fast spreading coronavirus," Curtin said.

He added, "The resilience of consumers is remarkable and due to record low unemployment, record gains in income and wealth, as well as near record lows in inflation and interest rates."

The report said the index of consumer expectations crept up to 90.5 in January from 88.9 in December, while the current economic conditions index edged down to 114.4 from 115.5.

On the inflation front, one-year inflation expectations rose to 2.5 percent in January from 2.3 percent in December and five-year inflation expectations climbed to 2.5 percent from 2.2 percent.


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Chicago Business Barometer Slumps To Four-Year Low In January

Trading 31 jan 2020 Commentaire »

Reflecting decreases by all five major components, MNI Indicators released a report on Friday showing its reading on Chicago-area business activity fell further into contraction in the month of January.

MNI Indicators said its Chicago business barometer tumbled to 42.9 in January from a revised 48.2 in December, with a reading below 50 indicating a contraction in regional business activity.

Economists had expected the business barometer to edge down to 48.8 from the 48.9 originally reported for the previous month.

With the steep drop, MNI Indicators said the Chicago business barometer slumped to its lowest level since December of 2015.

The decrease by the headline index came as the new orders index slid 6.1 points to 41.5 and the production index fell by 3.8 points to 42.7, the lowest level since last July.

The report said the order backlogs index also slipped to a four-year low, while the employment index edged down by 0.2 points to 47.0.

MNI Indicators said prices at the factory gate ticked down by 2.1 points to 56.1, registering a two-month low.


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*U.S. Consumer Sentiment Index Upwardly Revised To 99.8 In January

Trading 31 jan 2020 Commentaire »

U.S. Consumer Sentiment Index Upwardly Revised To 99.8 In January


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Latvia Economic Growth Slows In Q4

Trading 31 jan 2020 Commentaire »

Latvia's economic growth slowed in the final three months of 2019, after improving in the previous quarter, flash estimates from the Central Statistical Bureau showed on Friday.

Gross domestic product grew a non-adjusted 1.1 percent year-on-year after a 2.9 percent increase in the previous quarter.

Main upward pressure on the GDP was exerted by the 0.9 percent volume increase in services sectors that included a 1.7 percent growth in retail trade, the agency said. Manufacturing decreased slightly, while the amount of collected product taxes increased.

On a seasonally and calendar-adjusted basis, GDP rose 1 percent year-on-year following a 1.8 percent growth in the third quarter.

Compared to the previous three months, GDP grew an adjusted 0.2 percent in the fourth quarter after a 0.6 percent increase in the previous three months.

The statistical office is set to release the detail data on February 28.


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*Chicago Business Barometer Slumps To 42.9 In January

Trading 31 jan 2020 Commentaire »

Chicago Business Barometer Slumps To 42.9 In January


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Dollar Drops On China Virus Fears

Trading 31 jan 2020 Commentaire »

The U.S. dollar declined against its major counterparts in the European session on Friday, as the outbreak of the coronavirus is rapidly spreading outside China, raising concerns about the global economy.

The Chinese National Health Commission said that 213 people have died from the coronavirus, while the number of confirmed cases has risen to more than 9,800.

The U.K. and Russia have also confirmed their first cases of coronavirus infection, triggering fears about the economic impact of the disease.

Data from the Commerce Department showed that U.S. personal income increased slightly more than anticipated in the month of December.

The report said personal income rose by 0.2 percent in December after climbing by a downwardly revised 0.4 percent in November.

The greenback trended higher against its most major rivals in the Asian session.

The greenback slipped to 108.84 against the yen, after rising to a 2-day high of 109.14 in the Asian session. The next possible support for the greenback is seen around the 106.00 level.

Data from the Ministry of Economy, Trade and Industry showed that Japan retail sales rose a seasonally adjusted 0.2 percent on month in December.

That was shy of expectations for a gain of 1.2 percent following the 4.5 percent jump in November.

The greenback declined to an 8-day low of 0.9670 versus the franc from yesterday's closing value of 0.9695. The greenback is seen finding support around the 0.95 region.

Data from the Federal Statistical Office showed that Switzerland's retail sales rose for the fourth month in a row in December.

Retail sales rose a working-day adjusted 0.1 percent year-on-year in December, following a 0.5 percent increase in November.

The greenback hit a weekly low of 1.1053 against the euro from Thursday's closing quote of 1.1031. If the greenback extends decline, 1.12 is possibly seen as its next support level.

Preliminary data from Eurostat showed that Eurozone inflation accelerated for the third straight month in January.

Inflation rose to 1.4 percent from 1.3 percent in December. The rate came in line with expectations.

After rising to near a 2-month high of 1.3245 versus the loonie, the greenback briefly pulled back to 1.3222. On the downside, 1.30 is possibly seen as the next support level for the greenback.

The greenback retreated to 0.6471 against the kiwi and 0.6704 against the aussie, from its early near a 2-month high of 0.6454 and near a 4-month high of 0.6683, respectively. The greenback may challenge support around 0.66 against the kiwi and 0.71 against the aussie, if it slides again.

After a brief pause, the greenback fell to a weekly low of 1.3145 against the pound. Further weakness in the currency may locate support around the 1.33 level.

Data from the Bank of England showed that UK mortgage approvals rose to the highest level in two-and-a-half years in December.

The number of mortgages approved in December rose to 67,241 from 65,514 in November. This was also above the forecast of 65,600.

The University of Michigan's final consumer sentiment index for January is due out at 10:00 am ET.


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U.S. Personal Income Rises Slightly More Than Expected In December

Trading 31 jan 2020 Commentaire »

Personal income in the U.S. increased by slightly more than anticipated in the month of December, according to a report released by the Commerce Department on Friday.

The report said personal income rose by 0.2 percent in December after climbing by a downwardly revised 0.4 percent in November.

Economists had expected income to inch up by 0.1 percent compared to the 0.5 percent increase originally reported for the previous month.

Disposable personal income, or personal income less personal current taxes, also crept up by 0.2 percent in December after rising by 0.4 percent in November.

Meanwhile, the report said real disposable income, which is adjusted to remove price changes, edged down by 0.1 percent in November after climbing by 0.3 percent in the previous month.

The Commerce Department also said personal sending climbed by 0.3 percent in December following a 0.4 percent increase in November, with the growth matching expectations.

Excluding price changes, personal spending inched up by 0.1 percent in December after rising by 0.3 percent in November.

"That doesn't exactly provide a great hand-off to the first quarter but, with continued solid employment growth and buoyant consumer confidence, it still looks likely that consumption growth will rebound back above 2.0% annualized at the start of 2020," said Andrew Hunter, Senior U.S. Economist at Capital Economics.

He added, "Otherwise, the 0.1% m/m decline in real disposable incomes in December looks disappointing, but in reality it was partly driven by another drop-off in farm subsidies paid out by the Trump administration."

With spending increasing by more than income, personal saving as a percentage of disposable personal income dipped to 7.6 percent in December from 7.8 percent in November.

The report also said a reading on inflation said to be preferred by the Federal Reserve showed the annual rate of core consumer price growth ticked up to 1.6 percent in December from 1.5 percent in December.


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Dollar Little Changed After U.S. Personal Income & Spending Data

Trading 31 jan 2020 Commentaire »

The U.S. personal income and spending data for December has been released at 8:30 am ET Friday. The greenback changed little against its major rivals after the data.

The greenback was trading at 1.1047 against the euro, 1.3136 against the pound, 0.9676 against the franc and 108.88 against the yen around 8:35 am ET.


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U.S. Personal Income Rises 0.2% In December

Trading 31 jan 2020 Commentaire »

Personal income in the U.S. increased by slightly more than anticipated in the month of December, according to a report released by the Commerce Department on Friday.

The report said personal income rose by 0.2 percent in December after climbing by a downwardly revised 0.4 percent in November.

Economists had expected income to inch up by 0.1 percent compared to the 0.5 percent increase originally reported for the previous month.

The Commerce Department also said personal sending climbed by 0.3 percent in December following a 0.4 percent increase in November, with the growth matching expectations.


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Loonie Slightly Up After Canada GDP Data

Trading 31 jan 2020 Commentaire »

Following the release of Canada GDP data for November and industrial product price index for December at 8:30 am ET Friday, the loonie rose slightly against its major rivals.

The loonie was trading at 1.4614 against the euro, 0.8865 against the aussie, 1.3225 against the greenback and 82.33 against the yen around 8:34 am ET.


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