The Second Estimate of US Q4/16 GDP Growth Unchanged at 1.9%

The Second Estimate of US Q4/16 GDP Growth Unchanged at 1.9%\

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''Free Forex Signals's'' analysis for Forex international Market.

About Forex Planners,This is For an upward revision to 2.1%, The updated estimate falls a little short of market expectations.Consumer spending was stronger than previously estimated but that was make up for by weaker government expenditure and business fixed investment.Consumer spending growth was revised up to 3.1% in the second approximation of Q4/16 GDP from 2.5% up to that time, now similar the previous quarter's pace. While 2016 was a strong year for consumer expenses, the 2.7% annual raise fell short of the previous two years' gains. Stronger Q4/16 family circle expenditure was counterbalance by modest downward revisions somewhere else most significantly government spending, which is now predictable to have edged up just 0.31%. Business unchanging investment was also revised lower; at 1.32% in Q4/16, there is no longer confirmation of a important pickup comparative to the previous two quarters. With residential investment still screening a near 10.1% increase, final domestic order was revised up slightly to 2.61% from 2.52% previously. Net exports remained a important drag (with an unwind of Q3/16's surge in food exports a major factor) while a stronger supply build provided some offset.Thanks for view ''Free forex signals''.

Our Take.

And the important that, Offsetting revisions to Q4/16's spending detail left increase unmoved, and it remains the case that a lift up in household spending relative to Q3/16 made for a more hopeful report than the headline GDP figure suggests. The upward revision to consumer expenditure indicates strong impetus in the household sector toward the end of the year, but a more unassuming increase in business investment is somewhat hopeless, leaving less confirmation of rebalancing in domestic growth on the way to the end of last year. While the latter movement is less positive than previously predictable, we continue to expect non-residential investment will pick up diffidently this year beside improving business reaction, supplementing another strong input to growth from consumer expenditure. Our estimate has also built in some economic incentive, though much of the boost to yearly growth could fall more in 2018 as indications that tax improvement might not come before late-summer boundary the range for an add from economic policy this year. Thanks for read this post.Thanks for view ''Free forex signals''.

Canadian Dollar Ticks Move Lower, US Jobless Claims Next

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You know that, The Canadian dollar is showing a most slight movement on Thursday, after a unstable volatile movement on Wednesday . presently, the pair is trading at the 1.3420 level. In economic news, OPEC members reached a production cap deal. In the U.S, it's a busy day now, with two key events – unemployment claims and ISM built-up PMI. Employment indicators will be in the limelight on Friday, tinted by U.S Non-farm Payrolls and the Canadian Employment Change. Traders should be ready for some movement from USD/CAD on Friday 2/12/2016.

There was the common drama and fluctuations in oil prices forward of another OPEC meeting, but this time there was a shock ending. And OPEC announced that it had reached a production cut agreement. One of the main sticking points had been Iran's persistence to preserve output at pre-sanction levels. Saudi Arabia swallowed hard and accepted Iran's demand, pave stone the path for a production contract by OPEC since 2008. U.S crude has surged 6.6 percent in the Wednesday session and is trading above the $48 level. The agreement should trim down the worldwide glut of oil and steady oil prices, on the statement that OPEC members do not cheat on their production quotas. The surprise deal initially sent the Canadian dollar higher, but it could not join and ended the Wednesday session unaffected on Market.

U.S indicators overcome on Tuesday. In the Beginning GDP sparkled in the third quarter, as the economy expanded 3.1%, above the forecast of 3.1%. The 3.0% put on was an upwards revision of Advance GDP, which came in at 3.0%. Solid customer confidence numbers have been a serious factor in the U.S improvement, as an optimistic consumer is likely to go out and spend money. CB Consumer Confidence Move up to 107.1 points in November, surpassing the 100-level for the third time in four months. Last week, UoM buyer Sentiment jumped to 93.8 points, its highest level since May. Donald Trump's surprise election victory has not had an adverse effect on consumer confidence, and if these pinkish numbers translate into stronger consumer costs, the U.S dollar could continue to climb against its rivals. Thanks for Reading.

UPDATE 1-EU executive asks Italy to explain rising 2017 budget deficit

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BRUSSELS Oct 25 The European Commission asked Italy on Tuesday to explain why its 2017 structural budget deficit is rising instead of falling as requested by EU finance ministers and why the headline budget gap is to be much higher than Rome promised in May.

The letter from the European Union's executive arm to Italy's Finance Minister Pier Carlo Padoan is part of the Commission's responsibilities to check if the main assumptions of euro zone governments' budgets are in line with EU law.

Italy, like all euro zone countries, is obliged to cut its structural deficit, which excludes one-off items and the effects of the business cycle, by at least 0.5 percent of GDP a year until it comes into balance or surplus.

But in Rome's draft plan for next year, the structural deficit rises 0.4 percentage points to 1.6 percent of GDP, rather than falling 0.6 points to 0.6 percent of GDP as requested by EU finance ministers in July.

In May, Italy wrote to the Commission promising its headline budget deficit in 2017 would be 1.8 percent of GDP, down from 2.4 percent expected in 2016. The 2017 assumptions most recently sent to the Commission, however, put the headline deficit at 2.3 percent.

"We would need explanations for the revision of the targets and the substantial gap emerging with respect to the commitments made last spring," the Commission letter said.

The Commission, which also sent letters with requests for clarifications to Spain, Portugal, Lithuania, Cyprus and Finland, said it understands the extraordinary nature of the costs that Italy was incurring for the recent earthquakes and migration inflows, but it needed more detail.

"We would also need clarifications on amounts included in the Draft Budgetary Plan for consideration as 'exceptional expenditures'," it said.

The letter is an embarrassment for Italian Prime Minister Matteo Renzi, who faces a referendum on Dec. 4 that may determine whether he stays in office.

In 2015 and 2016, thanks to various clauses in the Stability and Growth Pact -- the EU's budget rules -- Italy got a total of about 19 billion euros, or 1.1 percent of GDP of extra budget leeway from the Commission.

The Commission agreed Rome could spend the additional money rather than consolidate state books because it was to go on refugees, investment, security and propping up the economy in bad times.

"Part of this flexibility, namely under the investment and structural reform clauses, was granted subject to Italy ... progressing with the structural reform agenda (and) ... presenting credible plans to resume the adjustment as of 2017," the Commission said.

It gave Italy until Oct. 27 to reply. If the Commission is not satisfied with the explanations, it could reject the budget assumptions and ask for new ones, although this has never happened yet since the Commission got the powers in 2013.

The Commission's doubts about draft budgets of the other countries mainly focused on insufficient planned reductions in the structural deficit, or, in the case of Cyprus, a sharp deterioration of the structural deficit by 1.9 percent of GDP.

In the cases of Spain and Lithuania, which do not have fully operational governments at the moment, the Commission requested an update of the draft budgets as soon as a fully functional government is in place.


ROME, Oct 25 Prime Minister Matteo Renzi said on Tuesday he was optimistic Italy's economy would grow by 1 percent this year, just a few weeks after he cut the official forecast to 0.8 percent.

 BRUSSELS, Oct 25 The European Commission asked Italy on Tuesday to explain why its 2017 structural budget deficit is rising instead of falling as requested by EU finance ministers and why the headline budget gap is to be much higher than Rome promised in May.Thanks.