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27 Aug 2013
Flash: EUR/USD and stocks higher on US data disappointment - Danske Bank
FXstreet.com (Barcelona) - Danske bank analysts note that yesterday’s disappointing durable goods orders out of the US sent rates lower and EUR/USD and equities higher (reversed later) as markets continue to discount the Fed tapering process.
Key Quotes
“Notably worrying was the capex trend suggesting that businesses started Q3 on a weak footing and unless July proves an outlier,this could imply downside risks to our H2 forecast that US growth will pick up.”
“Regarding the global economic outlook, we highlight that growth in developed markets is finally taking off in H2 due to the end of fiscal tightening, a turn in US housing and reduced global uncertainty.”
“Rising exports to US and Europe should also help to eventually lift emerging markets (EM) in 2014.”
Key Quotes
“Notably worrying was the capex trend suggesting that businesses started Q3 on a weak footing and unless July proves an outlier,this could imply downside risks to our H2 forecast that US growth will pick up.”
“Regarding the global economic outlook, we highlight that growth in developed markets is finally taking off in H2 due to the end of fiscal tightening, a turn in US housing and reduced global uncertainty.”
“Rising exports to US and Europe should also help to eventually lift emerging markets (EM) in 2014.”