Euro and Swiss Franc - The Euro and Swiss franc both gained on the day despite economic data that should have otherwise proved a dour one for the two. Mostly encouraged by the news of diversification, euro traders disregarded data that was suggestive of a slowdown in the region. According to the mornings reports, not only did consumer inflation in France come in slower than expected, it seems that overall industrial and manufacturing production was led lower in the month. To put things into perspective, both measures fell almost double what was expected by the consensus, lending a overall bearish outlook for the year end. However, somewhat neutralizing the disappointing data was the OECD leading indicators report. Remaining stable at the 109.1 level for the month of September, the report matches the August reading and coincides with statements released by the Paris based organization for Economic Cooperation and Development that G7 regions are continually expanding. Although noting suggestions of slowing growth in the Euro area, the composite report is in line with recent spate of target interest rate hikes by major central banks, including the hawkish bias by the European Central and Swiss National Banks, as economies are indeed growing. The notion will likely keep Euro bidders on point with central banks in both economies expected to raise interest rates yet again in the short term, notably in the first quarter of 2007 if not before this December.
Al Bawaba
Euro and Swiss Franc - The Euro and Swiss franc both gained on the day despite economic data that should have otherwise proved a dour one for the two. Mostly encouraged by the news of diversification, euro traders disregarded data that was suggestive of a slowdown in the region. According to the mornings reports, not only did consumer inflation in France come in slower than expected, it seems that overall industrial and manufacturing production was led lower in the month. To put things into perspective, both measures fell almost double what was expected by the consensus, lending a overall bearish outlook for the year end. However, somewhat neutralizing the disappointing data was the OECD leading indicators report. Remaining stable at the 109.1 level for the month of September, the report matches the August reading and coincides with statements released by the Paris based organization for Economic Cooperation and Development that G7 regions are continually expanding. Although noting suggestions of slowing growth in the Euro area, the composite report is in line with recent spate of target interest rate hikes by major central banks, including the hawkish bias by the European Central and Swiss National Banks, as economies are indeed growing. The notion will likely keep Euro bidders on point with central banks in both economies expected to raise interest rates yet again in the short term, notably in the first quarter of 2007 if not before this December.
