US Dollar rallies on bad Chinese data

We had interesting trade overnight with the release of the Chinese PMI Manufacturing at 47.8 vs 47.6 last month. US Dollar rallies on bad Chinese dataAlthough it has shown a small increase month on month it is painfully evident that growth is still lagging behind in the economy as the policy makers are still keeping the brakes on any further monetary easing.

This was the 11 month in a row of a negative growth figure for the sector.

Although new orders have increased which could still point to stabilisation in the sector.

The euro has been shedding investors this morning with the sentiment regarding Spain’s lack of willingness to request aid from the ECB’s new short-dated bond buying plan weighing down.

Also it has been reported that Greece is in the process of selling assets such as embassies, islands, palaces, airports to meet the final €2 billion of Troika cuts that are required before they receive the next tranche of aid.

Yesterday’s Existing Home sales from the US were better then the consensus coming in at 4.82 million which is the strongest result for two years and with the Fed announcing further QE last week should only get stronger in the coming months.

We had UK retail figures this morning which was expected to show a -.4% fall but came in at slightly better at -.2%, which is still a contraction and will only heighten calls for the BoE to increase the Monetary Easing further.

This worsening picture of the UK economy appears to show the grip of the double dip decision could be spiralling out of control with extreme measures still not aiding the recovery.

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