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The euro slightly weakened

19.01.2016
The main currency pair is falling on Tuesday afternoon, the activity in the instrument is below average.

The single European currency slightly weakened on Tuesday afternoon. The current quotation of the main currency pair is 1.0878; the reduction does not exceed 0.12%. Activity in the instrument is minor.

In the morning, interesting statistics on the Chinese economy were released. GDP growth in the fourth quarter of 2015 is at 6.8% y/y, which is wholly in agreement with predictions, and it is this fact, that became the catalyst for the growth of the morning of capital markets. In fact, there is nothing to especially to enjoy here: the current pace of strengthening is the minimal since 1990. Naturally, we compare it with China's economy from the previous year, it does not make sense to compare the rate of economic growth with the United States and the euro area. The momentum of GDP growth is lost, although the Chinese authorities have made a lot of effort to create a more comfortable environment for businesses and consumers. Even within the Chinese economy they will be able to run a healthy consumer demand and provide stronger orders, it is not a fact that it will be able to resist the flow of external negatives.

Other macroeconomic reports in China have been very doubtful in mood. Thus, industrial production in December rose by 5.9% y/y with expectations of growth of 6.0% y/y, while retail sales last month increased by only 11.1% y/y with the forecast of an 11.3 % y/y rise.

Another troubling signal is the narrowing of the flow of investment in fixed assets in China. In December, this figure rose by 10.0% with the forecast of an increase of 10.2%.

In other words, the slowdown can be seen almost everywhere. This fact suggests a very short-term rebound in today's stock exchange, as there is almost nothing to rejoice about in the Chinese economy.
 
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