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  1. Conditions are in place for a pick-up in Australia's economic growth to above-trend rates, the International Monetary Fund said.

    Concluding the Article IV mission, IMF staff said, "The pickup in growth is likely to be modest." Meanwhile, inflation and wages will be slow to rise.

    Household consumption is expected to be held back by low real wage growth, given labor market slack and structural change in some sectors. Economic slack is forecast to decline gradually.

    According to IMF, upward pressure on prices and wages should emerge once the economy has been at full employment, including lower underemployment, for some time.

    The lender assessed that continued macroeconomic policy support will remain essential as inflation was close to the mid-point of the target range not yet secured.

    Further, the agency said near-term risks to growth have become more balanced, but large external shocks, including their interaction with the domestic housing market, are an important downside risk.


    The material has been provided by InstaForex Company - www.instaforex.com
  2. Germany's producer price inflation eased in October, in line with expectations, data from Destatis showed Monday.

    The producer price index climbed 2.7 percent year-over-year in October, slower than the 3.1 percent rise in September.

    The price index for intermediate goods increased the most by 4.1 percent annually in October.

    Both energy and consumer goods prices were 2.8 percent higher than last year.

    On a monthly basis, consumer prices rose at a stable rate of 0.3 percent in October. The figure also matched consensus estimate.


    The material has been provided by InstaForex Company - www.instaforex.com
  3. The economy of Australia is expected to accelerate at a “modest” pace as soft wage growth is seen to add pressure on consumption, according to the International Monetary Fund.

    The IMF said that interest rates in Australia were “appropriately accommodative.”

    The Reserve Bank of Australia kept rates at a record low 1.50 percent for over a year now with core inflation below its 2-3 percent target band for two full years.

    “With stronger momentum in domestic demand and inflation close to the mid-point of the target range not yet secured, continued macroeconomic policy support will remain essential,” as stated in the IMF report.

    The IMF expects Australia's A$1.7 trillion ($1.3 trillion) economy to grow at “above-trend rates” due to infrastructure spending by the government.

    The boost from infrastructure will have a positive impact on private investment and could also counterbalance the declining contribution from residential investment.

    According to the report, there is an opportunity to expand on infrastructure spending, beyond the government's existing projects.

    “Near-term risks to growth have become more balanced, but large external shocks, including their interaction with the domestic housing market, are an important downside risk. On the positive side, the improved global outlook could lead to a stronger-than-expected recovery, underpinned by a larger pickup in non-mining business investment.”


    The material has been provided by InstaForex Company - www.instaforex.com
  4. Following the release of German producer prices for October at 2:00 am ET Monday, the euro changed little against its major rivals.

    The euro was trading at 1.1739 against the greenback, 131.51 against the yen, 0.8882 against the pound and 1.1614 against the franc around 2:01 am ET.


    The material has been provided by InstaForex Company - www.instaforex.com
  5. Germany Oct Producer Prices Up 2.7% On Year, Consensus 2.7%


    The material has been provided by InstaForex Company - www.instaforex.com