- Disappointing ZEW Economic Sentiment Survey results weaken Euro
- US focuses on Thursday’s Jackson Hole Symposium
- Australian consumers gloomy, while businesses retain confident outlook
- Boost in Chinese GDP closely linked to trade partners
By Rachael Kinsella
Disappointing ZEW Economic Sentiment Survey results weaken Euro
Europe received disappointing economic news in the form of the latest ZEW survey results this morning, with economic sentiment below forecasts for the Euro Area as a whole (29.3, considerably lower than the 34.2 forecast) and Germany (10.0 as opposed to the 15.0 expected). Germany is usually the leader and benchmark for success, so these poor results – the third unexpectedly low results in a row for Germany – have taken their toll on the Euro, causing it to retrace from the recent high versus the US Dollar.
US focuses on Thursday’s Jackson Hole Symposium
Markets are appear cautious and there appears to be increasing interest in buying US Dollars in the run up to the key US economic conference on Thursday, the Jackson Hole Economic Symposium. This has helped the US Dollar to pick up the pace, given its status as a so-called “safe haven” currency. Commodity currencies are feeling the strain of a retraction in oil prices; this has caused the US Dollar to strengthen against its North American neighbour, the Canadian Dollar. Meanwhile, the British Pound has fallen to a month-long low against the US Dollar today.
Australian consumers gloomy, while businesses retain confident outlook
In Australia, consumer sentiment remains low, but in contrast, business confidence is high, as lower consumer confidence figures were released. This follows consumers feeling the squeeze from rising energy costs, lack of affordability in the housing market, and lacklustre real wage growth.
Boost in Chinese GDP closely linked to trade partners
Chinese Gross Domestic Product (GDP) growth has come in higher than forecast, thanks to increased industrial activity and strong trade relationships with Australia and other countries within Asia-Pacific.