September 17, 2019
United States (US): Industrial Production Rebounds Much More Than Expected in August
Industrial production climbed by 0.6% in August. The bigger than expected rebound in production came as manufacturing output rose by 0.5% in August, more than reversing the 0.4% decrease in July. The Fed noted factory output has increased 0.2% per month over the past four months after having decreased 0.5% per month during the first four months of the year. Mining output also showed a substantial rebound, surging up by 1.4% in August after tumbling by 1.5% in July. Output in July had been suppressed by a cutback in oil extraction in the Gulf of Mexico due to Hurricane Barry. Capacity utilization for the industrial sector climbed to 77.9% in August after dropping to 77.5% in July.
Australia: AUD Drops as RBA Minutes Indicate Further Easing
Australian dollar traded at 68.58 U.S. cents at 9:00 am PST.
AUD fell against its major counterparts after the minutes from the RBA's latest meeting showed that the board would ease monetary policy further, if required to support growth and inflation target. The members assessed that an extended period of low interest rates would be required to make sustained progress towards employment and achieve the inflation target, according to the minutes from the September 3 meeting. Members agreed that they would assess developments in both the international and domestic economies, including labour market conditions, and would ease monetary policy further if needed to attain growth and inflation target. The board observed that the risks to the global growth outlook were tilted to the downside.
European Union (EU)
Euro traded at 1.1064 against USD at 9:00 am PST.
Germany: Economic Sentiment Improves Sharply, Yet Economic Outlook Negative
Economic sentiment improved strongly and at a faster-than-expected pace in September, after a slump in August, but the economic outlook remains negative. The ZEW Indicator of Economic Sentiment for Germany climbed to -22.5 from -44.1 in August. The score was close to the -21.1 logged in June but remained below the long-term average of 21.5 points. The current conditions index, however, fell to -19.9, the lowest level since May 2010, from -13.5 in August.
United Kingdom (UK): GBP Edges Higher as Supreme Court Hears Brexit Case
British Pound traded at 1.2489 against USD at 9:00 am PST.
GBP was higher as the Supreme Court heard a case over whether PM Johnson’s move to suspend Parliament before the country was due to leave the EU was legal. David Pannick, a lawyer who represents one of the campaigners challenging the government, told 11 Supreme Court judges that PM Johnson had improperly suspended the legislature “to silence Parliament ... because he sees Parliament as an obstacle to the furtherance of his political aims.”
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