North American Open 5/30/17

AS WIDELY EXPECTED, THE FEDERAL RESERVE RAISES RATES

During the December meeting, the central bank announced a rate hike valued at 25 basis points

  • The policymakers noted that the labor market has strengthened enough to validate a rise
  • Also noted was the moderate expansion of economic activity
  • Inflation is projected to rise 2% in the near term
  • The interest rates averaged 5.83% from 1971 to 2016

 

 

 

INDIA’S INLFLATION RATE SLOWS AS INDUSTRIAL OUTPUT DROPS

India’s industrial production contracted by 2.4%, its lowest level in 8 months

  • Consumer prices increased 5.05% YoY in August
  • Smaller rises in food prices were a significant contributor
  • India’s manufacturing production fell 3.4%
  • Output for electricity machinery rose 1.6% and mining rose 0.8%

 

CONSUMER PRICES IN POLAND DECLINED 0.8% IN AUGUST

Following a 0.9% drop in July, Poland’s inflation rate continued to fall and align with economic estimates

  • August was the 27th consecutive month in deflationary territory
  • Poland’s GDP growth rate advanced 0.9% in Q2, 3.1% YoY
  • USD/PLN currently trading at 3.8749
  • The Zloty is currently off a 2-week high vs. EUR

RUSSIAN GBP CONTRACTS BY 0.6% IN Q2 AS INFLATION EASES

Consumer prices rose 6.9% YoY in August, following July’s growth of 7.2%

  • The Russian economy shrank 1.2% in Q1 and 0.6% in Q2, the smallest contraction in 6 quarters
  • Manufacturing production (oil, natural gas, metals) returned to growth
  • Russia’s trade surplus decreased to $6.5B in July
  • Also recorded in July, Russia’s jobless rate was down to 5.3%

Canada’s GDP contracts 0.4% as unemployment reaches 7%

The jobless rate increased 0.1% to 7.0% in August while the trade deficit narrowed in July

  • The Bank of Canada left its key benchmark rate the same (0.5%) as was expected in September
  • GDP shrank 0.4% in Q2 following a 0.6% increase in the previous period

  • Interest rates in Canada have averaged 5.95% over the past 25 years
  • Total exports were up 3.4% as recorded in July, but down 7% YoY

 

 

 

 

 

 

 

Opening Rates

EUR / USD 1.1161 / 1.1162
USD / JPY 111.01 / 111.02
GBP / USD 1.2860 / 1.2861
USD / CHF 0.9767 / 0.9768
USD / CAD 1.3466 / 1.3467
AUD / USD .7444 / .7445
USD / MXN 18.5360 / 18.5432
USD / CNY 6.8555 / 6.8555
EUR / JPY 123.85 / 123.86
EUR / GBP .8677 / .8678