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Overview of the main economical events of the current day - 15/05/2013
ZEW index didn’t meet the expectations of the dollar growth correction
Germany economic sentiment index released on Tuesday from the ZEW research institute didn’t reach the expected figures of 40 points and was at the level of 36.4 in comparison with 36.3 points in March. It dispelled all the hopes of possible dollar’s growth correction. The index of current conditions in Germany dropped to the level of 8.9 points in May from 9.2 points in April and also turned out lower than the expected figures of 9.8 points.
German ZEW Economic Sentiment
ZEW president Clemens Fuest commented the results of the research and marked that the current bad economic situation in eurozone is still putting pressure on investors’ and analysts’ sentiment. Economic sentiment index is calculated from the poll of financial experts to estimate an economic situation in the country for the nearest 6 months. A figure above zero indicates predominance of optimism, below – pessimism. High indicator’s figures show positive economic situation and a good business climate.
However industrial production data in eurozone turned out much better than expected. Industrial production rose by 1% in March in comparison with 0.4% in February while only 0.5% growth was expected, which became the largest growth since July, 2011. It increases hopes for eurozone’s economy revival as it has been in decline for 6 quarters in a row. GDP data of eurozone will be published on Wednesday.
The dollar continued rising on Tuesday for the 4th day in a row while there were shown new signs of American economy recovery and possible early closing up of incentive programmes. The head of FED Plosser declared that he wanted bonds buying programmes to be finished by the end of the year. He also said that the FED should close-up bonds buying programme at the next meeting already.
U.S. Congressional Budget Office announced on Tuesday that the federal budget deficit this year was likely to decrease sharply. Also, the National Federation of Independent Business (NFIB) declared that its Small Business Optimism Index grew in April to 92.1 against 89.5 in March.
While the dollar was rising, the pound continued falling on Tuesday despite the publication of BoE Inflation Report on Wednesday and RICS House Price Balance which showed that housing prices in Great Britain had risen up to the highest level since June, 2010.
Australian dollar continued falling on Tuesday – the 7th day in a row – and dropped to the lowest level since June. The government of Australia introduced a new budget plan and announced that in the current financial year the budget will be well balanced, which differs from the forecast. Also it was marked that the deficit would be observed for 4 financial years until 2016.
New Zealand dollar also dropped on Tuesday after the quarterly retail sales report. According to the report of New Zealand statistics department the total retail sales amount in the first quarter grew only by 0.5%, with growth expectations of 0.8%. Besides, the data for the previous quarter were revised down.
On Wednesday markets’ attention will be attracted by preliminary GDP data of eurozone’s main countries and the eurozone as a whole. There are expectations of some improvements in comparison with the previous quarter. ECB board member Jörg Asmussen announced on Tuesday that the economy of Germany had risen in the first quarter while the eurozone had been in "mild recession" for the whole of 2013.
ZEW index didn’t meet the expectations of the dollar growth correction
Germany economic sentiment index released on Tuesday from the ZEW research institute didn’t reach the expected figures of 40 points and was at the level of 36.4 in comparison with 36.3 points in March. It dispelled all the hopes of possible dollar’s growth correction. The index of current conditions in Germany dropped to the level of 8.9 points in May from 9.2 points in April and also turned out lower than the expected figures of 9.8 points.
German ZEW Economic Sentiment
![zew.jpg](/proxy.php?image=http%3A%2F%2Fmasterforex.com%2Fuseruploads%2Fimages%2Fzew.jpg&hash=3f14b9ab31076f0ac0220f51ec43c401)
ZEW president Clemens Fuest commented the results of the research and marked that the current bad economic situation in eurozone is still putting pressure on investors’ and analysts’ sentiment. Economic sentiment index is calculated from the poll of financial experts to estimate an economic situation in the country for the nearest 6 months. A figure above zero indicates predominance of optimism, below – pessimism. High indicator’s figures show positive economic situation and a good business climate.
However industrial production data in eurozone turned out much better than expected. Industrial production rose by 1% in March in comparison with 0.4% in February while only 0.5% growth was expected, which became the largest growth since July, 2011. It increases hopes for eurozone’s economy revival as it has been in decline for 6 quarters in a row. GDP data of eurozone will be published on Wednesday.
The dollar continued rising on Tuesday for the 4th day in a row while there were shown new signs of American economy recovery and possible early closing up of incentive programmes. The head of FED Plosser declared that he wanted bonds buying programmes to be finished by the end of the year. He also said that the FED should close-up bonds buying programme at the next meeting already.
U.S. Congressional Budget Office announced on Tuesday that the federal budget deficit this year was likely to decrease sharply. Also, the National Federation of Independent Business (NFIB) declared that its Small Business Optimism Index grew in April to 92.1 against 89.5 in March.
While the dollar was rising, the pound continued falling on Tuesday despite the publication of BoE Inflation Report on Wednesday and RICS House Price Balance which showed that housing prices in Great Britain had risen up to the highest level since June, 2010.
Australian dollar continued falling on Tuesday – the 7th day in a row – and dropped to the lowest level since June. The government of Australia introduced a new budget plan and announced that in the current financial year the budget will be well balanced, which differs from the forecast. Also it was marked that the deficit would be observed for 4 financial years until 2016.
New Zealand dollar also dropped on Tuesday after the quarterly retail sales report. According to the report of New Zealand statistics department the total retail sales amount in the first quarter grew only by 0.5%, with growth expectations of 0.8%. Besides, the data for the previous quarter were revised down.
On Wednesday markets’ attention will be attracted by preliminary GDP data of eurozone’s main countries and the eurozone as a whole. There are expectations of some improvements in comparison with the previous quarter. ECB board member Jörg Asmussen announced on Tuesday that the economy of Germany had risen in the first quarter while the eurozone had been in "mild recession" for the whole of 2013.