The Czech crown strengthened and reached a new all-time high, getting below CZK/EUR 27.00 for the first time. The crown strengthens due to continuing interest in Central European currencies. The dollar has dropped to USD/EUR 1.4377.
CNB did not change the interest rates, according to expectations. The new inflation forecast is consistent regarding further rates increase but the trajectory it shows is lower that the one before.
The producers´ prices index in Slovakia increased by 0.5% y/y in September as prices grew by 1.6% y/y. Both figures are above expectations.
The Chinese economy grew by 11.5% in 3Q07 in comparison to 10.6% in 3Q06 and it is now getting ahead of Germany in terms of size.
Orders of long-term consumption goods declined by 1.7% in USA while growth of 0.7% had been expected. The number of new applications for unemployment benefit was 331 thousand in comparison to the expected 320 thousand. New house sales amounting to 770 thousand have not reached the consensus of 780 thousand.