New Home Sales Shows a Collapse, Income, Spending Came Less than Expected

New Zealand Third Quarter GDP Missed Estimates, Economic Growth Continues

Economy expanded 0.2 percent in the third quarter, Statistics New Zealand reported today at 10:45 local time. The quarterly number missed the average estimate by 0.2 percent. New Zealand dollar fell against the yen and the US dollar after the report though the depreciation was somewhat limited. I made a very small profit by selling the NZDUSD after the news.

Reactions to US Leading Indicators and the Philly Fed Index

Leading indicators in the US rose in November to 0.9 percent, beating analyst estimates by 0.2 percent. Philadelphia Fed index of manufacturing activity also climbed more than expectations, reaching to 20.4 for December from 16.7 in the previous month.

It is worth noting that the Empire Manufacturing index for that month had already showed significantly less improvement than expectations. Furthermore, a report on jobless claims which released earlier that day showed an increase of 7,000 when the market was waiting for 8,000 decline.

Following charts show the reactions to the news.

UK Retail Sales Disappoints Market

A 0.3 percent decline in November retail sales completely disappointed the market which was looking for a 0.6 percent increase.

Pound depreciated against the dollar and the yen, in a day that the sentiment in financial markets was battered by ongoing concerns about the credit quality of some countries, especially Greece which its rating downgrade raised questions about the economic healthiness of the euro-area. However - and with all the regrets! - I take my profit by selling the pound against the dollar after the report.

UK Jobless Claims Unexpectedly Fell in November

On December 16, employment data from the UK surprised the market. Jobless claims unexpectedly fell by 6,000 when analysts were waiting for more than 12,000 increase. It was the first decline since February. Unemployment rate however rose to 7.9 percent, in line with expectations. Sterling appreciated in response and I managed to take profit by buying the pound against the dollar just minutes after the report.

Australian GDP Missed Average Estimates

On December 16, a report showed that Australian gross domestic product rose just 0.2 percent in the third quarter, after 0.6 percent in the previous three months. The GDP figure missed the average analysts’ estimate by 0.2 percent. I sold the Aussie against the dollar and the yen just after the report and both positions resulted in profit.

Quotes of the Day

“You will find during times of uncertainty, such as the early 1980s, the Russian crisis or Sept. 11, the bond market becomes very ineffective because investors can disappear overnight”, said Julian van Kan, an analyst from the BNP in London, highlighting the concerns about the difficulties companies have to get loan. (Source: Bloomberg)

Making 99 pips of profit from the falling Gold

US Advance Retail Sales and the University of Michigan index of consumer sentiment both rose more than estimates. Dollar rose and gold fell in response to the news and I managed to make 99 pips of profit by selling gold after the retail sales report.