Euro Rose Amid Weaker Dollar
On currency markets, New Zealand dollar is trading as the strongest one. British pound and Japanese yen are also firm. The euro is rising against the backdrop of a weaker dollar. Investors are betting that concerns about growth will motivate the Federal Reserve to slow down the pace of rising interest rates at this week’s meeting.
On stock markets, FTSE fell 0.46%, DAX added 0.32% and CAC lost 0.17%. Earlier in Asia, Nikkei closed down 1.82%. Singapore Strait Times dropped 2.21%. Hong Kong HSI lost 1.05%. China Shanghai SSE fell 0.82%.
The State Secretariat for Economic Affairs (SECO) downgraded both 2018 and 2019 Swiss growth forecasts significantly. For 2018, growth projection is lowered to 2.6%, down from 2.9%. For 2019, growth projection is cut to 1.5%, down from 2.0%. For 2020, growth is now estimated to be at 1.7%. On inflation, for 2018, CPI is projected to be at 1.0%, unrevised. For 2019, CPI is projected to be at 0.5%, down from prior estimate of 0.8%. For 2020, CPI is projected to grow to 0.7%.
Today’s data showed, that Germany Ifo Business Climate dropped for the fourth straight month to 101.0 in December, down from 102.0 and missed expectation of 101.7. Current Assessment gauge dropped to 104.5, down from 105.5 and missed expectation of 104.9. Expectations gauge dropped to 97.3, down from 98.7 and missed consensus of 98.2.
It was also reported, that US housing starts increased to 1.26M in November versus expectation of 1.23M. Building permits rose to 1.33M versus expectation of 1.27M. Canada manufacturing sales fell 0.1% mom in October versus expectation of 0.3% mom gain.