Foreign Exchange Market Update

April 25, 2024

United States (U.S.): GDP Climbs Much Less Than Expected in Q1; Weekly Jobless Claims Unexpectedly Dip to Two-Month Low

A report released by the Commerce Department showed that the U.S. economy grew by much less than expected in the first quarter of 2024. The Commerce Department said GDP increased by 1.6% in the first quarter after surging by 3.4% in the fourth quarter of 2023. Economists had expected GDP to jump by 2.5%. The notable slowdown in GDP growth primarily reflected decelerations in consumer spending, exports, and state and local government spending and a downturn in federal government spending. 04/25/2024 - 08:40:00 (RTTNews)

The Labor Department released a report showing an unexpected decrease by first-time claims for U.S. unemployment benefits in the week ending on April 20. The report said initial jobless claims fell to 207,000, a decrease of 5,000 from last week's unrevised level of 212,000. The dip surprised economists, who had expected jobless claims to inch up to 214,000. With the unexpected decline, jobless claims dropped to their lowest level since hitting 200,000 in the week ending on February 17. The Labor Department said the less volatile four-week moving average also edged down to 213,250, a decrease of 1,250 from last week's unrevised average of 214,500. Continuing claims, a reading on the number of people receiving ongoing unemployment assistance, also slid by 15,000 to 1.781 million in the week ending on April 13. The four-week moving average of continuing claims also fell to 1,794,000, a decrease of 7,250 from the previous week's revised average of 1,801,250. Next Friday, the Labor Department is scheduled to release its more closely watched report on employment in April. 04/25/2024 - 09:08:00 (RTTNews)

United Kingdom (U.K.): Retail Sales Decline Sharply in April - CBI

British Pound traded at 1.2494 against USD at 9:00 am PST.

U.K. retailers reported a sharp decline in sales in April, the latest monthly Distributive Trades survey results from the Confederation of British Industry showed. A net 44% of retailers said sales volumes decreased in April, in contrast to the 2% reporting an increase in March. A balance of 19% forecast sales to fall again next month. About 20% of retailers said sales were below "average" for the time of year and about 25% said sales are set to remain below seasonal norms next month. A net 49% said order placed on suppliers decreased in April and 30% said orders will decline next month. 04/25/2024 - 08:09:00 (RTTNews)

Germany: Consumer Sentiment to Hit 2-Year High in May

Germany's consumer confidence is set to rise again in May to hit a two-year high as households turned more optimistic about future income, adding to the list of positive indicators that suggests the biggest euro area economy is likely to undergo a very shallow recession. The forward-looking consumer sentiment index rose to -24.2 in May from a value of -27.3 in April, a survey conducted by the market research group GfK and the Nuremberg Institute for Market Decisions (NIM) showed on Thursday. The reading was expected to rise modestly to -25.9. The score hit a two-year high but it remained at an extremely low level, GfK said. The stronger rise in consumer confidence compared to the previous two months was primarily driven by the noticeable improvement in income expectations.

Meanwhile, the propensity to save acted as a drag. NIM consumer expert Rolf Burkl observed that increases in wages and salary combined with a fall in inflation form the basis for increasing purchasing power among households. Consumers' income expectations strengthened for the third month. The corresponding index climbed 12.2 points to 10.7 in April. The reading was at a higher level in January 2022. Falling inflation together with the increase in collectively agreed wages and salaries strengthened the purchasing power of households. At the same time, the propensity to buy index gained only 2.7 points to -12.6 in April. However, the reading stayed at an extremely low level as consumers remain cautious and set aside their resources rather than spending. The economic expectations index grew 3.8 to 0.7 in April. This was the best score since July 2023. 04/25/2024 - 08:35:00 (RTTNews)

Hong Kong: Trade Gap Widens in March

Hong Kong Dollar traded at 7.8281 against USD at 9:00 am PST.

Hong Kong's foreign trade deficit increased in March from a year ago as imports rose faster than exports, data from the Census and Statistics Department showed. The trade deficit widened to HK$45.0 billion in March from HK$40.6 billion in the same month last year. In February, the trade shortfall was HK$41.6 billion. The visible trade deficit of HK$45.0 billion was equivalent to 10.5% of the value of imports. The annual increase in exports was 4.7% in March, reversing a 0.8% fall in February. Total exports to Asia grew by 8.1%. Within this, shipments to Vietnam advanced the most, by 41.6%. 04/25/2024 - 06:33:00 (RTTNews)