Market News | Amana Capital
The GBP/USD fell against major currencies Tuesday as investors remained concerned over Bank of England’s rate policy decision to hike interest rate next week and Brexit negotiations. The sterling slid 0.11% to 1.3183 against the US dollar and 24% to 0.8923 against the euro (EUR/GBP). In addition, Bank of England (BoE) Deputy Governor Jon Cunliffe in his speech said that the interest rate needs to rise, but not so fast, raising doubts over next week’s policy outcome. At the same time, European Commission President Jean-Claude Juncker said that the bloc isn't consulting with the Britain in a hostile way and accept that the EU and UK will achieve a reasonable arrangement on divorce.
Eurozone's composite Purchasing Managers' Index (PMI) for the month of October came in at 55.9, compared to consensus estimates of 56.5 and down from 56.7 in September. In addition, the services PMI for the period also missed market expectations at 54.9, from prior 55.8. Meanwhile, EURUSD continued to trade higher by 0.13% at 1.1764 by 09:05GMT.
The NZD/USD fell over 0.60% Tuesday after newly elected Prime Minister Jacinda Ardern said that she will take actions by focusing on jobs creation and inflation control in the Reserve Bank Act reform. She also said that the central bank should focus to manage NZ dollar against other currencies. It fell nearly 1% from yesterday’s close of 0.6983 to the lowest level of 0.6922 since May 22. This decline in the kiwi was also partly driven by the firmness in the US dollar, supported by speculations over hawkish new Fed chair and interest rate hike in December.
Germany manufacturing PMI rose to 60.5 in October, better from Reuters’ median consensus of 60.2, but it is down from 60.6 seen in September. On the other hand, the services PMI fell to 55.2, lower than the market consensus of 55.6, down from the previous reading of 55.6. Meanwhile, the EUR/USD traded nearly flat at 1.1751 by 07:30 GMT.
China's Annual GDP Likely to Rise 6.8% in 2017, Slows to 6.4% Next Year: Reuters Poll
According to recent Reuters poll, China’s annual gross domestic product (GDP) is forecast to increase 6.8% this year, better from July’s prediction of 6.6%. However, the growth is anticipated to slow further next year to 6.4%. At the same time, the People's Bank of China (PBoC) is expected to keep its benchmark borrowing rate on hold at least through Q2 2019, but the central bank is forecast to lower reserve requirement ratio (RRR) by 50 basis points in the second-quarter of 2018.
Australia consumer inflation is expected to have risen 0.8% q/q in the third-quarter of this year, up from 0.2% seen in the last quarter. On an annual basis, it is forecast to increase 2% y/y, a tad higher from previous print of 1.9% y/y. Further, core inflation is seen to register 0.3% q/q, printing the annual rate at 1.8% y/y. The trimmed mean is expected at 0.27% and the forecast for the weighted median is 0.32%. Meanwhile, there still remains significant risk that inflation will remain below the RBA’s current forecasts for 2018 and 2019.