Euro area overcomes the recession, U.S. data set dollar under pressure
Euro area overcomes the recession, U.S. data set dollar under pressure
GDP indicates possible end to the euro crisis.
In the euro crisis slowly the light at the end of the tunnel is emerging. The published today GDP for the entire euro area showed, after six quarters of negative, positive growth. This growth at 0.3%, is still very low, but provides an important signal for the approaching end of the euro crisis. Highlighting here is the growth of Portugal. While forecasts still saw the Portugal's GDP at -0.2%, the economy has a positive sign and a quarter gain of 1.1% for the first time since 2010. This shows that the economy slowly picks up in the southern countries of the euro area, not least through the sometimes quite controversial reforms. A problem is still seen in the Spanish economy, the fourth largest of the euro area, where it was found that the orders were for the industry last year decline 7.8%. But the development of the euro also shows that investors are not yet convinced this is the worst finally behind us. Against the USD, the EUR currently posted a narrow gain of 0.03% at a price of 1.3264, but this is due, among other things, poor U.S. economic data. Only the EUR against the CHF has seen a pronounced increase in the amount of currently 0.32% with a rate of 1.2411.
U.S. Data cast further doubt about the reducing of the Fed's purchases.
The data published so far this week to the U.S. economy have cast doubt on an early reduction of bond purchases by the Fed. During yesterday's numbers still roughly reflected the predictions were today's figures to the U.S. producer price indices are all below the predicted values. Were the positive data in recent weeks still the basis for speculation that the Fed could reduce its program to purchase bonds in the amount of 85 billion U.S. dollars a month in September, so this is less likely at the moment. Even though no major impact on the USD are seen, it could change tomorrow when the weekly numbers on applications for Initial and Continuing Jobless Claims in the U.S. are published.
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