Trade Gap Widens

Sunrise Market Commentary - Fixed Income: Largely uneventful session for core bonds - Core bonds had an insignificant, technical and sentiment-driven session that left bond yields slightly higher in the close. Overnight, negative headline news on JP Morgan and Greece triggered a moderately strong opening of the Bund. Europe will be in the focus today with the publication of the Spanish banking plan and the EU spring forecasts. - Currencies: EUR/GBP testing 80.00 barrier, as BoE stops printing press - On Thursday, sentiment on risk turned slightly less negative, even without progress in the Greek debt/election crisis. Nevertheless, the decline in EUR/USD slowed. EUR/GBP reached a minor low just below 0.8000 as the BoE halted its program of asset purchases. For now, we see no ...

The number of Americans submitting new applications for jobless benefits edged down last week, easing concerns the labor market was deteriorating after April's weak employment growth. While the claims data indicated the economy remained on a moderate growth path, a report from the Commerce Department showing a widening in the trade deficit in March suggested economic growth was much slower in the first quarter than initially believed. New claims for state unemployment benefits slipped 1,000 to a seasonally adjusted 367,000, the Labor Department said on Thursday. The prior week's figure was revised up to 368,000 from the previously reported 365,000. Economists polled by Reuters had forecast claims inching up to 369,000 last week. The four-week moving average for new claims, considered a ...

Today the USD began to incline against major currencies to regain its power after yesterday’s instability when majors inclined to cover the price gap against the dollar, which helped the dollar against majors today. From another side, the Australian trade balance deficit widens in March for the third consecutive month, negatively affecting its price, especially against the American dollar to be near the lowest in 2012. AUD/USD pair is being traded near the lowest at 1.0166 from 1.0212 with a high of 1.0215 and currently at 1.0182. New Zealand’s dollar fell against the American dollar recording a low of 0.7921 from 0.7968 with a high of 0.7968 and currently ia trading at 0.7930. Japanese yen inclined for the second straight day this week where the pair USD/JPY recorded a high of 80.06 ...

(Reuters) - Americans felt worse about their personal finances in early February, but rising confidence in the labor market's prospects should help to support spending and the broader economy. The Thomson Reuters/University of Michigan overall index of consumer sentiment fell to 72.5 in early February, data showed on Friday, from 75.0 in January. It was the first drop in six months and reflected households' anxiety over their finances. The ebb in morale comes despite the recent run of relatively strong data, including solid job growth and manufacturing activity. "While there is plenty of positive momentum in the economy there is still plenty to worry about," said Lindsey Piegza, an economist at FTN Financial in New York. The Conference Board's survey of consumer attitudes published ...

(Reuters) - Concerns about weak incomes weighed on consumer confidence in early February, but rising optimism over the jobs market should help to support spending and the broader economy. The Thomson Reuters/University of Michigan overall index of consumer sentiment was 72.5 in early February, data showed on Friday, down from 75.0 in January and below the reading of 74.5 expected in a Reuters poll of economists. The pull-back in sentiment is rather surprising given that job creation has picked up, with employers adding 243,000 workers to their payrolls in January and the unemployment rate falling to a three-year low of 8.3 percent. "The survey respondents might have been reacting to higher prices at gasoline pumps more than anything else," said Cary Leahey, a senior economist at ...

(Reuters) - The U.S. trade deficit widened slightly more than expected in December, as stronger U.S. economic growth lifted imports to the highest level in three-and-a-half years. The same Commerce Department report on Friday showed the closely watched deficit with China last year soared to a record high $295.5 billion, underscoring a continuing irritant in the U.S.-China relationship ahead of top level talks next week. The monthly U.S. trade gap swelled to $48.8 billion as goods imports climbed to the highest level since July 2008, just before the financial crisis caused world trade to plunge. Analysts surveyed before the report had expected the December trade deficit at $48.0 billion, up from a revised estimate of $47.1 billion in November. U.S. exports grew slightly in December, ...

(Reuters) - Consumer sentiment picked up more steam in early January, rising to the highest in eight months as Americans grew more optimistic about job prospects, a survey released on Friday showed. Separate data earlier in the day showed the trade deficit widened in November to its largest in five months, suggesting imports weighed on economic growth a bit more than expected during the fourth quarter. The Thomson Reuters/University of Michigan preliminary January reading on its overall index of consumer sentiment rose to 74.0 from 69.9 in December for the fifth month of gains and the highest level since May 2011. The report topped expectations of 71.5 and was in contrast to December's weaker-than-expected retail sales reported on Thursday. "This shows even though the retail sales ...

(Reuters) - The trade deficit widened in November to its largest in five months, suggesting imports weighed on economic growth a bit more than expected during the fourth quarter. The trade gap totaled $47.8 billion, exceeding analysts' forecast of a $45.0 billion deficit, Commerce Department data showed on Friday. The government revised its initial estimate for October's trade deficit slightly lower to $43.3 billion. The trade report "is important for fourth-quarter GDP and this data should bring those (growth) expectations down," said Jacob Oubina, an economist at RBC Capital markets in New York. Imports rose 1.3 percent to $225.6 billion as Americans bought more industrial supplies from abroad and spent more on foreign oil. It was the biggest increase in imports since May, according ...

(Reuters) - Brent crude fell to near $111 on Thursday, snapping six days of gains, after trade data from China pointed to slower demand in the world's second-largest oil consumer. China, the pillar of global oil demand growth, saw its September crude oil imports fall 12.2 percent on a daily basis from a record high rate a year earlier and stood below a 5.0 million bpd mark for the fourth consecutive month. This came despite analysts' expectations of a gain in demand as new refineries opened and some units restarted after scheduled maintenance. Total exports from the world's largest factory were also lower than expected, dealing another blow to investors already worried about the worsening sovereign debt crisis in Europe and a possible recession in the United States. Brent crude for ...