Daily Economic Round Up

United States

Consumers are starting to realize that things are not as rosy as they seem. The consumer confidence index slid from 54.8 to 49.3 instead of rising to 55.4 as expected. Concerns about job losses and wage cuts took their toll on the consumers’ outlook for the economy. Prior to this, house prices reported an 18.1% drop, which is less than the forecasted 18.7% decline. Chicago PMI soared from 34.9 to 39.9, higher than the consensus at 38.9. Nonetheless, a wave of risk aversion took over the charts as the USD ended higher against most major currencies. More…

Euro zone

Consumer confidence in Europe showed signs of improvement as it rose from -28 to -25, against the forecasted decline to -29. This suggests that the central bank’s stimulus measures, such as record low interest rates, are helping to ease the recession. Since this index is an indicator of financial confidence, it implies that consumer spending may show signs of recovery in the near future. More….

United Kingdom

The GBP plummeted yesterday after weak economic numbers were presented. Initially, the GBP/USD broke its upper bound daily trading range upon the release of the housing price index, which saw a 0.9% increase against the 0.4% forecasted decline. However, gloomy numbers began to pour in, starting with the current account. More…

Japan

The Tankan index, which is one of the most-awaited major economic reports from Japan, wasn’t as strong as expected. The manufacturing index rose from -58 to -48 and failed to meet expectations at -43. Meanwhile, the non-manufacturing index climbed from -31 to -29, which is slightly lower than the consensus at -26. Consolidation was seen among JPY crosses in anticipation of this report. However, no large spikes took place after the release of the weaker-than-expected numbers. More….

Australia

The AUD/USD started to make strong gains yesterday only to return them after the weak US consumer confidence data sparked a return of risk aversion. This comdoll saw another slide as building approvals reported a massive 12.5% drop, against the forecast of a 3.2% increase. Meanwhile, retail sales were up by 1%, which is slightly better than the expected 0.5% uptick. More…

New Zealand

No economic reports were released from New Zealand yesterday. The NZD/USD began the day by making headway towards higher highs but found itself sliding down as the US released worse-than-expected consumer confidence data. The pair broke below the psychologically significant 1.6500 level and found some support around the 1.6450 area. More….

Canada

Economic activity in Canada was down by 0.1% in May, exactly as expected. This marks the ninth month in the decline of Canada’s GDP. The components of the GDP show that the decline was largely a result of falling output in retail, manufacturing, and energy industries. More…

Switzerland

The UBS consumption indicator slid from 0.91 to 0.77. The indicator, which resumed its downward trend, was reported to have fallen below its long-term average. This suggests that Swiss consumer spending is still rising slightly but the outlook is becoming increasingly glum. More…