North American Open 3/24/17

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 1.0804 / 1.0805
USD / JPY 111.03 / 111.04
GBP / USD 1.2481 / 1.2482
USD / CHF 0.9912 / 0.9913
USD / CAD 1.3359 / 1.3360
AUD / USD .7615 / .7616
USD / MXN 18.9391 / 18.9471
USD / CNY 6.8840 / 6.8879
EUR / JPY 119.95 / 119.96
EUR / GBP .8653 / .8654