Despite the interest rate set at 0.5% in the eurozone, the exporters struggled yet again in the month of May where the current account balance decreased to 19.6 billion from April’s 23.8 billion. Investors took this news release as a serious concern that may head towards slowing down the economy further as the influx of money in the eurozone may decrease as well. The Euro fell instantly against the U.S. dollar for around 40 points in the European session.
Consumers Purchasing Less in Britain
The retail sales grew by just 0.2% for the month of June in U.K, after facing a significant decline from its previous level of 2.1% that was recorded in the month of May. These numbers were inflation-adjusted that were meant to have a significant impact on pound, and so it did as the pound lost around 50 points but later gained them back in the U.S. session.
Good News for Canadian Wholesalers
The percentage number of sales in the Canadian wholesale sector grew by 2.3% in May against the 0.4% level that was recorded in April this year. This means that the retailers are ordering more goods and inventories from the wholesalers as they are expecting the consumer spending to rise.
Unemployment Claims at a 2-months Low
The unemployment claims for the past week fell by around more than 20,000 as the data came out to be at 334,000 against the previous reading of 358,000 unemployment claims. Good sign for the labor market in the U.S. though, but the FED chairman again testified yesterday and said that it is too early to say that the FED would be tapering the bond buying activity by the end of this year. This all depends on the economic indicators that are to follow, and hence investors remained panic-less on his statement again which is a good sign because no buying on facts is being done, neither selling on rumors. Market remained stable.
On the other hand, the Philly Fed Manufacturing Index surprised investors with an unusual rise in the index figures that came out to be at 19.8 against the previous reading of 12.5 and expected 8.5. It shows that the business activity in the economy is growing and the business sentiment is quite positive as more lending, expenditures, investment, and hiring is being done. The U.S. dollar remained firm against the majors but gained significantly against the yen.