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December 2016

Sterling slips on falling consumer confidence

Published: Thursday 22 December 2016

  • NZD remains weak in spite of improved GDP growth
  • Sterling slips on falling consumer confidence
  • Raft of US data later
Christmas is fast approaching but before we get there we have a few remaining data items to consider.
 
The New Zealand Dollar remains weak despite improved economic growth data. GDP growth of 3.5% on the year points, as Statistics New Zealand put it, to "broad-based growth" with 13 of 16 industries showing improved activity. In fact the main weakness came from the agricultural sector. Household spending jumped 1.6% and export volumes remain high even though growth fell over the quarter. Manufacturing activity also rose on the back of food beverage & tobacco manufacturing; and transport equipment, machinery & equipment manufacturing.
 
We heard overnight that UK consumer confidence was not as bad as last month’s -8 index reading. However, -7 isn’t anything to boast about and Sterling slipped. The compilers of the index, Gfk noted that consumers, "Remain relatively confident about their personal financial situation" but continued that, "looking ahead to 2017, against a backdrop of Brexit negotiations, the decline in the value of Sterling, and the prospect of higher inflation impacting purchasing power, we forecast that confidence will be tested by the storm and stress...of the year to come." Cheery words indeed. Unsurprisingly, Sterling slipped again on the news.
 
That’s it for this morning’s data.  This afternoon we cross the Atlantic for the rest of today’s numbers
simultaneous releases of Canadian inflation and retail sales should show a slight dip in Canada’s inflation rate and a similar slowdown in retail, activity.
 
At the same time we will see US Durable goods orders and their Q4 GDP growth data as well as the weekly jobless claims numbers. This afternoon will also bring the US House price index as well as Personal Income & Spending data.  As you might suspect, the US markets will be pretty lively and that is enhanced by the effect of traders settling up their open speculative positions ahead of the Christmas and Hanukkah holidays.
 
And I don’t know about you but I cannot abide Ikea’s idea of shepherding you through a maze before you can get to the checkouts. I know some people like the place but it’s not for me. Some teenagers though have been hiding in cupboards and under beds in the store, only to sneak out at night and hold sleepovers in the stores. Ikea are asking them to stop. 

 

One-liners

  •          People are making ‘end of the world’ jokes like there’s no tomorrow.
  •          My son asked me what a relationship with a woman would be like so I told him to leave me alone. When he walked away I asked him why he was ignoring me.
  •          My advice is always to give 100%....unless you’re donating blood.
  •          Does refusing to go to the gym count as resistance training?
  •          I asked Siri why I didn’t have a girlfriend and it just took my picture.
  •          If Mayans were actually able to predict the future, wouldn’t they be running the planet now.
  •          If at first you don't succeed, blame your parents and seek counselling.

 

Halo Christmas and New Year Opening Hours

 
Monday 26th December - Bank Holiday Closed
Tuesday 27th December - Bank Holiday Closed
Wednesday 28th December  08:30 - 17:30
Thursday 29th December 08:30 - 17:30
Friday 30th December 08:30 - 17:30
Monday 2nd January - Bank Holiday Closed
Tuesday 3rd January 08:30 - 20:00
Wednesday 4th January 08:30 - 20:00
Normal Opening Hours Resume

Daily Currency Analysis by David Johnson
 
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