The beast of the business week brought strengthening of the dollar and the crown (Comment)

Sentiment indicators this week showed a slight improvement in mood. This was evident not only in the domestic economic survey for March (more here: https://bit.ly/3vxw9aZ), but also in April of the GfK consumer portal in Germany or the new survey of economic sentiment in the Eurozone by the European Commission. Perhaps the worst is behind the eurozone economy. According to us, its recovery will only be gradual this year. In the whole year, the estimated GDP growth of the euro area was 0.6%.

The domestic economy grew solidly in the middle of the year.The final estimate of the domestic GDP for the fourth quarter resulted in an upward revision of the quarter-on-quarter growth of the economy from the original 0.2% to 0.4%. In the meantime, the comparative economy grew by 0.2%, while according to the previous estimate S of the beginning of the month, the economy fell to the same extent. Oiven recorded both household consumption and fixed investment. A positive increase in certain imports, which clearly affected the import of two products in progress, was compensated by a negative increase in production. Despite the robust quarter-on-quarter growth, real consumer spending remained 0.5% low, when according to it it increased so strongly by the dispute. The measure of profit of non-financial enterprises also remained above average. Everything here: https://bit.ly/4aPYNDt. Evidently with the support of these data, the koruna resisted the strengthening dollar on Thursday and strengthened by 0.1% to 25.30 CZK/EUR, which was about 5 ha stronger than on Monday.

The dollar was supported today by Ch. Waller of the Fed.He stated that before changing rates, he wants to wait for further data that would confirm the degree of inflationary pressure and moderate tension on the labor market. The GDP in the USA for Q4 23 also had a positive impact from the point of view of greenbacks.where the same as in the case of R for upward revision. Instead of the initial 3.2% quarter-on-quarter annualized growth, the American economy eventually grew by 3.4%. In addition, the revision of the growth structure pointed to stronger demand pressure, when the dynamics of personal consumption was increased and, on the contrary, the growth of total resources. Against the euro, the dollar traded 0.2% stronger in the afternoon at around USD/EUR 1.08.

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