India Industrial Production Continues To Fall

Trading 11 sept 2020 Commentaire »

India's industrial production continued to decrease sharply in July, driven by a steep drop in manufacturing, despite businesses re-opening gradually following a lockdown to battle the coronavirus. Industrial production dropped 10.4 percent year-on-year in July, data from the statistics ministry showed Friday, which was smaller than the 11.5 percent decline economists had forecast. In June, production shrunk a revised 15.8 percent. Manufacturing output fell 11.1 percent year-on-year in July. Mining output decreased 13.0 percent and electricity production fell 2.5 percent.

In the April to July period, industrial production slumped 29.2 percent from a year ago.


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Dollar Climbs As U.S. Consumer Inflation Picks Up

Trading 11 sept 2020 Commentaire »

The U.S. dollar strengthened against its major counterparts in the European session on Friday, as the nation's consumer inflation improved more than forecast in August due to the resumption of activity after COVID-led shutdown.

Data from the Labor Department showed that the consumer price index climbed by 0.4 percent in August after advancing by 0.6 percent for two straight months. Economists had expected consumer prices to rise by 0.3 percent.

Excluding food and energy prices, core consumer prices still rose by 0.4 percent in August following a 0.6 percent increase in July. Core consumer prices were expected to edge up by 0.2 percent.

The greenback showed mixed trading in the Asian session, by falling against the euro and the pound but holding steady against the franc. Versus the yen, it advanced.

The greenback bounced off to 0.9103 against the franc, from a low of 0.9080 set at 5:45 am ET. The greenback is seen finding resistance around the 0.95 mark.

The greenback staged a modest recovery against the euro, with the pair trading at 1.1835. This followed a low of 1.1874 logged at 5:50 am ET. The pair closed deals at 1.1815 on Thursday. The next possible resistance for the greenback is seen around the 1.16 level.

Data from Destatis showed that German consumer prices were unchanged in August after a modest decline in July.

The consumer price index was unchanged on a year-on-year basis, after a 0.1 percent fall in July. Compared to the previous month, the index decreased 0.1 percent.

The greenback rose back to 1.2786 against the pound, heading towards nearly a 2-month peak of 1.2762 hit at 5:00 am ET. Should the greenback rises further, it may find resistance around the 1.25 level.

Data from Office for National Statistics showed that the UK economy expanded for the third straight month in July as lockdown measures continued to ease.

Gross domestic product expanded 6.6 percent in July from June, when it gained 8.7 percent. GDP was forecast to climb 6.7 percent.

The greenback rebounded to 1.3194 against the loonie, 0.6666 against the kiwi and 0.7284 against the aussie, from its prior lows of 1.3151, 0.6695 and 0.7306, respectively. The greenback may find resistance around 1.33 against the loonie, 0.64 against the kiwi and 0.70 against the aussie.

In contrast, the greenback was trading at 106.15 against the yen, slightly down from a high of 106.27 recorded at 3:20 am ET. On the downside, 104.00 is possibly seen as its next support level.

Data from the Bank of Japan showed that Japan producer prices rose 0.2 percent on month in August - in line with forecasts and down from 0.8 percent in July.

On a yearly basis, producer prices fell 0.5 percent - again matching expectations following the 0.9 percent decline in the previous month.

The U.S. monthly budget statement for August is set for release in the New York session.


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Decline In Spain Industrial Output Slows In July

Trading 11 sept 2020 Commentaire »

Spain's industrial production declined at a slower pace in July following the relaxation of the coronavirus containment measures, data from the statistical office INE showed Friday.

Industrial production fell 6.4 percent on a yearly basis, following a 14.3 percent decrease in June.

On an unadjusted basis, the annual fall in industrial production slowed to 6.4 percent from 10 percent a month ago.

Data showed that capital goods output plunged 12.6 percent and that of intermediate goods was down 5 percent. Energy output dropped 5.2 percent and the decline in consumer goods production came in at 4 percent.

Month-on-month, industrial production advanced 9.3 percent in July, but was slower than June's 13.6 percent increase.


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UK Economy Continues Recovery In July

Trading 11 sept 2020 Commentaire »

The UK economy expanded for the third straight month in July as lockdown measures continued to ease though it has still only recovered just over half of the lost output caused by the coronavirus.

Gross domestic product expanded 6.6 percent in July from June, when it gained 8.7 percent, data published by the Office for National Statistics showed Friday. GDP was forecast to climb 6.7 percent.

"While it has continued steadily on the path towards recovery, the UK economy still has to make up nearly half of the GDP lost since the start of the pandemic," ONS director of economic statistics Darren Morgan said.

GDP was 11.7 percent lower than the pre-pandemic levels seen in February 2020.

In three months to July, GDP fell 7.6 percent from the previous three months.

As most sectors in the economy are open again there is little scope for further large rises in monthly GDP, an economist at Capital Economics, said.

On top of that, talk of tax rises at the next Budget, a further deterioration in the Brexit negotiations and a worrying rise in the number of virus cases and tighter social distancing restrictions will all conspire to slow the recovery even further, the economist added.

Data showed that the growth in services output eased to 6.1 percent in July from 7.7 percent in June.

Likewise, industrial output rose 5.2 percent, slower than the 9.3 percent increase seen in the previous month. Manufacturing output advanced 6.3 percent.

At the same time, construction output advanced 17.6 percent, but slower than the 23.6 percent increase in June. Farm output grew only 1.1 percent.

Year-on-year, the decline in industrial production slowed to 7.8 percent in July from 12.5 percent. Manufacturing was down 9.4 percent versus a 14.6 percent drop in June.

Another report from the ONS showed that the visible trade deficit widened in July as exports decreased amid rising imports. The shortfall increased to GBP 8.63 billion in July from GBP 6.55 billion in June.

Exports fell 0.9 percent on month, while imports grew 5.8 percent in July.

The surplus on services decreased to GBP 9.7 billion from GBP 10.45 billion in the previous month. Consequently, the total trade surplus fell to GBP 1.07 billion from GBP 3.9 billion a month ago.


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U.S. Consumer Price Growth Slightly Exceeds Estimates In August

Trading 11 sept 2020 Commentaire »

A report released by the Labor Department on Friday showed consumer prices in the U.S. increased by slightly more than anticipated in the month of August.

The Labor Department said its consumer price index climbed by 0.4 percent in August after advancing by 0.6 percent for two straight months. Economists had expected consumer prices to rise by 0.3 percent.

Energy prices saw continued growth, increasing by 0.9 percent in August after surging up by 2.5 percent in July. Gasoline prices led the way higher, jumping by 2.0 percent.

The report said food prices also inched up by 0.1 percent in August after falling by 0.4 in July, as an increase in the food away from home index more than offset a slight decline in the food at home index.

Excluding food and energy prices, core consumer prices still rose by 0.4 percent in August following a 0.6 percent increase in July. Core consumer prices were expected to edge up by 0.2 percent.

The Labor Department said a 5.4 percent spike in prices for used cars and trucks accounted for over 40 percent of the increase in core prices.

Paul Ashworth, Chief U.S. Economist at Capital Economics, said the jump in prices for used cars and trucks reflects problems with dwindling supply.

"With goods production continuing to lag behind the rebound in spending, those problems are only going to become more acute over the next few months, pushing core inflation higher," Ashworth said.

Prices for shelter, recreation, household furnishings and operations, apparel, motor vehicle insurance, and airline fares also rose, while prices for education and personal care were among the few to decline.

With the continued monthly increase, consumer prices in August were up by 1.3 percent compared to the same month a year ago, reflecting an acceleration from the 1 percent growth in July.

The annual rate of growth in core consumer prices also inched up to 1.7 percent in August from 1.6 percent in the previous month.

"The annual inflation rates are still a lot lower than the Fed would like," Ashworth said. "But that's mainly because of the sharp one-off declines in prices in the early stages of the pandemic."

He added, "More recently there has been a lot more upward pressure on prices than we would have expected given the extent of the collapse in the real economy."

On Thursday, the Labor Department released a separate report showing producer prices also increased by slightly more than expected in the month of August.

The Labor Department said its producer price index for final demand rose by 0.3 percent in August after climbing by 0.6 percent in July. Economists had expected prices to edge up by 0.2 percent.

Excluding food and energy prices, core producer prices climbed by 0.4 percent in August following a 0.5 percent advance in July. Core prices were also expected to tick up by 0.2 percent.

Compared to the same month a year ago, producer prices in August were down by 0.2 percent following a 0.4 percent drop in July. Core prices were up 0.6 percent year-over-year.


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*India Jul Industrial Production -10.4% Y/Y; Manufacturing -11.1%

Trading 11 sept 2020 Commentaire »

India Jul Industrial Production -10.4% Y/Y; Manufacturing -11.1%


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U.S. Consumer Prices Rise Slightly More Than Expected In August

Trading 11 sept 2020 Commentaire »

A report released by the Labor Department on Friday showed consumer prices in the U.S. increased by slightly more than anticipated in the month of August.

The Labor Department said its consumer price index climbed by 0.4 percent in August after advancing by 0.6 percent for two straight months. Economists had expected consumer prices to rise by 0.3 percent.

Excluding food and energy prices, core consumer prices still rose by 0.4 percent in August following a 0.6 percent increase in July. Core consumer prices were expected to edge up by 0.2 percent.


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Dollar Slightly Up Following U.S. CPI

Trading 11 sept 2020 Commentaire »

After the release of U.S. consumer inflation for August at 8:30 am ET Friday, the greenback rose slightly against its major rivals.

The greenback was trading at 1.1843 against the euro, 106.17 against the yen, 0.9100 against the franc and 1.2813 against the pound around 8:33 am ET.


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*Canadian Industrial Capacity Utilization Drops To 70.3% In Q2

Trading 11 sept 2020 Commentaire »

Canadian Industrial Capacity Utilization Drops To 70.3% In Q2


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*U.S. Consumer Prices Rise 0.4% In August, Core Prices Climb 0.4%

Trading 11 sept 2020 Commentaire »

U.S. Consumer Prices Rise 0.4% In August, Core Prices Climb 0.4%


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