Browsing all articles tagged with growth
May
25

German Economy to Pick up Although Fall Short of Traditional Pace

Germany’s economy will recuperate from a bout of winter weakness however fall well short of the dynamic growth rates of previous years as euro zone recession and global slowdown stunt investment and exports.

There are homegrown problems too. What hue of government will result from September elections is injecting doubts and foreign investors cite worries regarding over-regulation and Germany’s future energy mix after Chancellor Angela Merkel turned her back on nuclear power.

Europe’s paymaster was long flexible to the euro debt crisis but contracted at the end of previous year and only eked out meager growth in the first quarter.

The Bundesbank stated this week a solid second quarter recovery was in prospect. Construction is expected to bounce back following a harsh winter and private consumption will grow thanks to low unemployment inflation-busting wage boost and low interest rates.

Although even the government forecasts just 0.5 percent growth in 2013 and economists doubt German companies will start investing heavily in the short term.

Christoph Schmidt, head of the German Council of Economic Experts, nobody expects strong growth for this year now particularly as the first quarter was so sobering, advisors to the government known as the wise men.

The economy grew just 0.1 percent in the first quarter following shrinking 0.7 percent in the previous three months of 2012.

Schmidt said trade will not contribute much, it could even drag on growth so that leaves domestic demand, private consumption is comparatively stable however investments are restrained and the key question will be when and how much they pick up.

Sep
7

EUR/USD D1 Technical September 7

EUR/USD rose as Manufacturing orders for July in Germany gained 0.5% against the forecast of 0.3% growth and in contrast to 1.6% fall in June, At 16:30 Non-farm payrolls index is expected for August. The economists expect it to reach 121K in contrast to 163K in July. But as far as the growth in the private sector was the highest for the last 6 months, Non-farm payrolls should be above expectations as well.
Technically the price broke through the downward channel of October 30, 2011 and May 1, 2012), it still should fix above the maximum of June 18 (1.2746).So buy deals are recommended targeting 1.2690 and 1.2730.