by Damian -
German manufacturing expanded at the slowest pace in 15 months in September as new orders fell, signalling uneven momentum in Europe’s largest economy. The data adds to the uncertainty facing the German economy. While gross domestic product unexpectedly contracted in the second quarter, the Bundesbank said yesterday that positive July data had dispelled fears of an abrupt end to the country’s upturn. In June, Germany’s central bank predicted growth of 1.9 percent this year and 2 percent in 2015.
In the UK, August BBA mortgage approvals and public finances are scheduled for release later in the morning. Julys larger-than-expected budget deficit provided further confirmation that the public finances have started the current financial year on a weak note.
The pound has dropped 70 points against both the US Dollar and the Euro this morning.
In the US, a number of Fed speakers are scheduled for this afternoon.
Currencies of commodity-exporting nations such as Australia, Canada, New Zealand and South Africa dropped as a gauge of raw materials slid to a five-year low on speculation demand will drop after China signalled slower economic growth. The Australian dollar sank to a seven-month low against its U.S. counterpart, dropping against most of its 31 major peers, while South Africa’s rand weakened.
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