Last Friday, revised U.S. GDP figures for the last quarter of 2014 reflected a growth rate of 2.2%, which was below the first release of 2.6%, but still 0.2% above analysts' forecasts. We are very far from the numbers of the previous quarter, however, which had posted an amazing growth result of 5%.
The People's Bank of China (POCB) announced on Saturday that it would be lowering its key rate for a second time in three months. The main key rate was lowered from 5.65% to 5.35%. The one-year deposit rate was also lowered by 25 basis points to reach 2.5%. This is another sign that China is still trying to stimulate its economy, which is now growing at a rate that is slightly higher than 7%.
The HSBC China Manufacturing PMI, released last night, came in at 50.7, i.e. 0.6 higher than analysts' forecasts. In economic news, we are starting off the week in the United States with Personal Income and ISM Manufacturing Index figures, while in Canada we are awaiting the RBC Canadian Manufacturing PMI. Have a good week!
Philippe Shebib
Range of the day: 1.2450 - 1.2550