Novedades sobre el Intercambio Extranjero (en Inglés)
December 7, 2016
Indicative Interbank spot sell rates only as of 9:00 AM PST.
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United States (US) Openings fell by 97k in October to 5.534 million, compared with market expectations for a decline to 5.488 million. Government job openings fell by 7k. Consequently, private sector job openings fell by 90k. Over the past 12 months, there were 112k more job openings. Job Hires fell by 22k in October to 5.099 million. Over the past 12 months, there were 113k more job hires, 370k below their November 2006 pre-recession peak level. Job Separations fell by 61k in October to 4.875 million. Over the past 12 months, there were 37k more job separations.
Australia’s dollar traded at 74.75 U.S. cents at 10:21 am PST and New Zealand dollar traded at 71.53 U.S. cents. Australia’s economy slipped backwards in the September quarter, by a greater than expected 0.5%. It is the first time in five years the economy has recorded three months of negative growth. When the economy previously contracted in a single quarter, in March 2011 (by 0.2%), it had suffered from the Queensland flood. If it contracts again in the December quarter, Australia will be in a technical recession – ending 25 years of economic growth. Australia’s annual economic growth rate has now dropped from 3.3% to just 1.8%. Economists say it is now more consistent with the softening in the labor market that has occurred since the start of the year. On another note, New Zealand job advertisements increased at a slower pace in October. Job ads grew 0.6% month-on-month in October following September's 1% increase. Reflecting a broad upswing in labor demand, the ANZ job ads series has not fallen in any month in 2016. On a rolling 3-month average basis, job ads advanced 18% versus a year ago, the strongest growth in five years. Auckland and Wellington job ads climbed 17% each from a year ago. The slowdown in the rebuild effort impacted the Canterbury labor market as job ads gained only 0.4% in the region.
Euro traded at 1.0753 against USD at 10:22 am PST. France's trade deficit widened more than expected in October as exports declined though imports remained firm. Data showed that French trade deficit rose to EUR 5.20 billion from EUR 4.79 billion in September and EUR 4.48 billion a year ago. The deficit was wider than that of EUR 4.35 billion expected by economists. Exports remained the main drag, falling 0.4% on a year-on-year basis, while imports grew 2.3%. Details of the report showed that aeronautical industry exports were unfavorable. Shipments fell 0.8% monthly in October after a 2% slump in September. Imports grew 0.3%, partly reversing a 0.6% decline in September. The goods trade deficit widened to EUR 3.3 billion in October from EUR 2.8 billion in the preceding month. Meanwhile, the deficit on services trade dropped to EUR 0.1 billion from EUR 0.9 billion.
British Pound exchange rate is 1.2609 against USD at 10:22 am PST. U.K. house prices grew at a slower pace in November from October. House prices increased 0.2% month-on-month in November, in line with expectations, but slower than the 1.5% rise seen in October. Nonetheless, prices have increased for the third straight month. Meanwhile, annual growth in house prices accelerated to 6% in three months to November from 5.2% in three months ended October. House price growth rose for the first time in eight months. Prices were expected to rise 5.9%. Heightened affordability pressures, resulting from a sustained period of house price growth in excess of earnings rises, appear to have dampened housing demand, contributing to the slowdown in house price inflation," Martin Ellis, a Halifax housing economist, said.
Japanese Yen traded at 113.80 per USD at 10:22 am PST. Leading index for Japan, which measures the future economic activity, increased less-than-expected in October to the highest level in nearly a year, preliminary figures from the Cabinet Office showed Wednesday. The leading index rose to 101.0 in October from 100.0 in the previous month, Economists had expected the index to climb to 101.4. This was the best reading since November last year, when the score was 101.6. The coincident index that reflects the current economic activity, climbed to 113.9 in October from 112.5 a month ago. The latest score was the strongest since April 2015, when it marked 114.1. At the same time, the lagging index dropped to 113.3 in October from 114.0 in September.
Canadian dollar traded at 1.3238 per USD at 10:22 am PST. The Bank of Canada is keeping its key overnight rate at 0.5%, pointing to a stronger global economy coupled with continued uncertainty regarding international trends. Donald Trump’s election win in the United States has created expectations in financial markets that Republicans in Washington will inject new fiscal stimulus into a U.S. economy that is near full capacity, a development the bank says has pushed Canadian bond yields “significantly” higher. The bank says the Canadian economy rebounded strongly in the third quarter, as expected, following a very weak first half of 2016 that was largely due to the temporary shutdown of Alberta’s oil patch caused by wildfires in and around Fort McMurray. That strong third quarter growth is expected to shift to more moderate growth in the fourth quarter, according to the bank. The decision to keep the overnight rate at 0.5%, where it has sat for the past 16 months, was widely expected by financial markets.
Onshore Chinese yuan traded at 6.8720 per USD at 10:22 am PST and offshore Chinese yuan traded at 6.9008 per USD. China’s foreign currency reserves, the world’s largest, fell the most since January after the yuan declined to an eight-year low. Reserves decreased $69.1 billion to $3.05 trillion in November, the People’s Bank of China said in a statement Wednesday. That compares with the median forecast of $3.06 trillion in a Bloomberg survey of economists. Decline was biggest since reserves tumbled $99.5 billion in January. Authorities have imposed some capital controls but continue to struggle to stem capital flights out of the country. Further complicating U.S.-China relations, President-elect Trump has vowed to label China a currency manipulator and has furthermore, threatened to impose large tariffs on Chinese goods.
This market update is prepared by Cathay Bank for informational purposes only and does not constitute any form of legal, tax or investment advice, nor should it be considered an assurance or guarantee of future exchange rate movements or trends. This information is provided without regard to the specific objectives, financial situations or needs of any recipient. Cathay Bank does not make any representations or warranties about the accuracy, completeness or adequacy of this market update.