Information received since the Federal Open Market Committee met in June indicates that growth in economic activity rebounded in the second quarter. Labor market conditions improved, with the unemployment rate declining further. However, a range of labor market indicators suggests that there remains significant underutilization of labor resources. Household spending appears to be rising moderately […]
The Reserve Bank today increased the Official Cash Rate (OCR) by 25 basis points to 3.25 percent.
New Zealand’s economic expansion has considerable momentum, with GDP estimated to have grown by around 4 percent in the year to June. Global financial conditions remain very accommodative and are reflected in low long-term […]
Results of the Summer 2014 Survey
The summer Business Outlook Survey continues to offer some encouraging signs for the economic outlook, although lingering uncertainty amid intense competition still hinders the pace of growth.
Overall, the outlook of businesses has not changed materially from the spring survey. While responses suggest a more modest improvement in past […]
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.25 per cent.
Information becoming available since the December meeting confirms that economic conditions in Europe were weakening late last year, with risks still skewed to the downside. Reflecting this, most forecasters have […]
According to the latest report released by the Australian Bureau of Statistics, retail sales declined in December, the first drop in six months, as consumers spent less at grocers and on dining out. Reserve Bank of Australia’s board meets tomorrow to decide on rates, and most economists predict a third straight reduction. A survey of […]
Even though Greek debt negotiations are still pressuring the euro in foreign currency market, disappointing U.S. economic data put doubts on the strength of the greenback. The latest Consumer Confidence Index figures released by the Conference Board showed that consumer confidence retreated in January, after large back-to-back gains in the final two months of 2011. […]
While Greek officials are talking with private creditors about reducing its debt before a key payment comes due in March, people are increasingly wondering that if the Greeks don’t want to help themselves, why others should. Some believe that a terrible end is better than a terror without end. Some economists say that it’s better […]
The currency market is still very sensible to the news from the eurozone. The situation in Greece raised concerns as the country moves closer to the possibility of a chaotic default and the market pulled back, but it is not impacting the market as much as before. Yesterday we saw better than expected eurozone flash […]
The euro paused last week’s rally as investors remained vigilant over Europe after Greece and its private creditors struggled to reach an agreement over the weekend. The aim is for a voluntary restructuring of some EUR206 billion of debt Greece owes its private creditors by exchanging old bonds for new ones. Reports show that private […]
EUR/USD Technical Analysis
Next week EUR/USD will probably try to test 1.3121 level as long as we don’t sink below 1.2820 area. If we get very good news from the eurozone, we may even see 1.3260. if the pair fails to stay above 1.2965 level the outlook will remain bearish and we may be back […]