Novedades sobre el Intercambio Extranjero (en Inglés)
May 23, 2016
Indicative Interbank spot sell rates only as of 9:00 AM PST.
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United States (US) Flash Manufacturing PMI released today by Markit showed a drop to 50.5 on expectations of 51.0. The decline has been attributed to production declines, slow rate of expansion in new orders, and a pickup in inflationary pressure. The decline in production was the first time output has fallen since September 2009. The decline was reported to be marginal, but at 50.5, output is falling closer towards stagnation. Markit reported the cause to be delays in spending decisions as a repercussion of an uncertain economic outlook. New orders showed growth, albeit at its slowest pace seen in 2016. Foreign client demand saw a reduction in demand as new export sales declined for the second consecutive month. Pressure was also seen on outstanding work, which dropped for its fourth consecutive month, as well as payroll numbers, which saw only modest growth.
Euro traded at 1.1222 against USD at 10:38 am PST. Germany’s PMI reading rose from April’s 53.6 to a five-month high of 54.7. Germany recorded its largest ever monthly current account surplus in March, as exports of German goods held steady in the face of global turmoil and imports dipped. Germany recorded its largest ever monthly current account surplus in March, as exports of German goods held steady in the face of global turmoil and imports dipped. While, Eurozone Markit's Composite Purchasing Managers' Index (PMI) edged down to 52.9 from April's 53. Producers reported that domestic market conditions remained tough and softer international trade flows led to the smallest rise in new export business for 16 months. Growth in Germany continued to strengthen across both manufacturing and services in May with the overall pace of expansion reaching its highest since the end of last year. France also continued its move out of stagnation, with economic output rising at the fastest pace for seven months as faster services growth offset an ongoing manufacturing decline. The boost from France and Germany were offset by a further cooling of the rate of expansion outside of the big-two nations to a 17-month low.
Japanese Yen traded at 109.18 per USD at 10:38 am PST. Japan registered a trade balance of 823 billion Yen in April, the third consecutive month it has posted a trade surplus, this is compared to march’s trade balance of a revised 754.2 billion Yen. Japan's exports fell 10.1% in April from -6.8% in March, while imports also fell further from -14.9% to 23.3% in April. While, Japan's all industry activity recovered in March on an expansion in industrial output. The all industry activity index gained 0.1% in March from February when it fell 0.9%. Nonetheless, it was slower than a 0.5% rise forecast by economists. And the leading index rose to 99.3 in March, which was upwardly revised from the preliminary estimate of 98.4. In February, the reading was 98.9. The coincident index that reflects the current economic activity, climbed to 111.1 in March from 110.7 in the previous month. The reading for March was corrected from 111.2.
Onshore Chinese yuan traded at 6.5533 per USD at 10:38 am PST and offshore Chinese yuan traded at 6.5609 per USD. China’s domestic financial markets may bring volatility to Yuan rates. In terms of equity markets, new rules on trading halts could be released as soon as next week. The news rules intend to increase the odds of China’s A-shares to be included in the MSCI Index. MSCI will announce the decision in June. If the decision is a “yes”, China’s equity market is expected to attract a significant amount of capital flowing into the country, which would be a positive impact on Yuan rates.
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.