Another week of data has come to an end and the first half of 2017 confirms the euro as the strongest currency of the moment.
The euro closed the first half of the year with the best performance on the forex market among the G10 countries’ currencies. The euro rally on the major currencies was in particular on the dollar (+8,41%), yen (+3,82%) and sterling (+2,98%).s
Last week Article: Oil Prices Collapse Encourage the Rise of Gold Price
Speaking of the yen and then of Japan, among the various important news of the week we will include the data from the Japanese Ministry of Internal Affairs and Communication. Japan’s inflation grew in May by 0,4% per annum, as in April (0,2% in March) but below 0,5% estimated by economists.
The core data (benchmark on which the Bank of Japan fixed a target of 2%) however, recorded a 0,4% year-on-year improvement, slightly up from 0,3% of April (0,2% in February and March ) and in line with the consensus.
On a monthly basis, overall and core inflation remained unchanged. Consumption prices in the Tokyo region, considered a loyal indicator for national-level trends, also remained unchanged on an annual basis in June.
Inflation data has been published also for the Eurozone where the preliminary inflation has risen in June. According to the data, the annual consumer price index rose by 1,3%, while analysts predicted an increase of 1,2%. In the previous survey, however, Eurozone inflation had risen by 1,4%.
In addition, it was also published the confidence figure for the Eurozone economy and it was at its maximum 10 years. The index that measures the aggregate confidence of businesses and consumers in the Eurozone economy has risen to 111,1, which was not seen since August 2017, surpassing analysts’ expectations, with a correction at 109,5.
In May, the same indicator had marked the 2015 highs at 109,2.
Still remaining in the old continent but coming out of the Eurozone, the United Kingdom has published the data on GDP in the first quarter of 2017.
UK GDP has confirmed all expectations as it has increased by 0,2% over the previous 3 months.
On an annual basis and compared to the first quarter of 2016, UK GDP rose by 2%, which confirms both the consensus and the previous figure.
Following the declarations of the governors of the respective central banks during the last week, the euro sterling exchange has come back in the spotlight.
In fact, the listing did not succeed neither to continue the bullish momentum or undertake the downward trend despite the good news on GDP. Its upward trend could continue in the coming weeks, also considering that Brexit negotiations will affect EUR / GBP.
As far as for the United States, the main market movers published this week are durable goods orders and GDP. Although the latter still disappoint, good news comes from the GDP indicator.
Last month orders for durable goods fell 1,1% on a monthly basis, worsening the result of the previous month of -0,9%.
It surprises, however, the final estimate of the US Gross Domestic Product, recording 1,4% growth in the first quarter of the year, against expectations for an unchanged result from the previous version of +1,2%.
However, the GDP deflator for the first quarter is disappointing, down from + 2,2% to 1,9%.