Denmark: Goods resilience offsets weaker services – Danske Bank

FXStreet Insights Team FXStreet

Danske Research Team reports that overall consumer spending excluding energy in June was broadly unchanged on the month, with real spending up 4.3% year-on-year. Real retail spending on goods rose, particularly in larger consumer categories, while service spending generally declined. The report highlights reduced real fuel consumption as households respond to higher prices and a shift toward electric cars.

Goods strength contrasts weaker services

"Adjusting for seasonality and prices, total spending excluding energy was broadly unchanged in June, increasing 0.1% compared to May. However, compared to the same month last year, real spending was 4.3% higher. Unlike the broad-based growth seen in May, June was characterised by higher goods spending, while service spending declined across most categories."

"Real retail spending rose 0.7% m/m in June after seasonal and price adjustments, supported by higher spending across all goods categories. Real spending on smaller consumer goods continued to increase modestly, while spending in larger consumer goods categories, such as DIY stores, furniture stores and electronics and household appliance stores, rose significantly. Grocery spending was essentially unchanged in both nominal and real terms following strong growth in May."

"Nominal spending at petrol stations declined 5.0% m/m in June, partly reflecting lower fuel prices from May to June. However, fuel prices remain significantly elevated compared to February, before the conflict in the Middle East. Adjusted for prices, real spending fell 1.6% m/m in June and has declined 4.8% since February."

"Households are buying less fuel in response to higher prices, partly reflecting a declining number of petrol and diesel cars and a significant increase in the stock of electric cars."

"Service spending generally declined in June. While spending in hotels increased in nominal terms, only beauty salons and barbers saw an increase in real spending. Bars and nightclubs, restaurants and most other service categories saw lower real spending, with spending on tourist attractions and amusement parks falling particularly sharply."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Week ahead: US CPI, France’s budget crisis and Q3 earnings to set the market tone

The US dollar held relatively strong this week, despite the disappointing US jobs report on October 2, which further decreased the probability of a back-to-back rate hike by the Fed at the upcoming gathering on October 28.

CFTC Report: Euro and Aussie shorts expand amid diverging signals

The week in one sentence: Euro and Australian Dollar shorts deepened in the week to October 6, while Yen longs rebuilt. In addition, Coffee buying continued, and Gold exposure remained elevated despite another price decline. Speculators turned more negative on the Euro, increasing the net exposure to around 99.3K contracts.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?