• American focus : the euro fell slightly against the U.S. dollar

Market news

19 December 2013

American focus : the euro fell slightly against the U.S. dollar

Rate of the euro traded in a range against the U.S. dollar, while demonstrating a slight decrease . Note that after adjusting Eurocurrency yesterday dollar growth caused by the decision to cut the Fed asset purchases by $ 10 billion to $ 75 billion a month , and an increase in the economic outlook for the United States . So , after a meeting of 17-18 December the Fed has reduced its quantitative easing program and kept the target range of the base interest rate of zero to 0.25 % per annum. Fed from January 2014 intends to reduce purchases of government bonds to $ 45 billion to $ 40 billion a month , mortgage-backed securities - from $ 40 billion to $ 35 billion a month . At the same time the Fed is ready to continue the reduction of future meetings , if justified its macroeconomic forecasts . The Federal Open Market Committee, stressed that the base rate will remain in the current range for a long time after the decline in the unemployment rate to less than 6.5% , especially in the case of continued low inflation .

As for economic data , today appreciable effect on the course of trading , they did not have .

The Canadian dollar rose sharply against the dollar , helped by the weak U.S. reports . The first is to provide data on the number of applications for unemployment benefits . In the Department of Labor reported that the number of people filing for first time applications for unemployment benefits rose by 10,000 and totaled a seasonally adjusted 379,000 in the week ended Dec. 14 , said Thursday . This is the highest level since March and well above 336,000 new claims economists expected . The number of applications from the previous week was revised up to 369,000 . New applications jumped by 74,000 in the past two weeks after moving to six-year lows in late November. The four-week moving average of claims, which smooths the volatile weekly data , rose by 13,250 to 343,500 .

Not pleased as data on the housing market. As it became known , existing home sales fell by 4.3% compared with the previous month to a seasonally adjusted annual rate of 4.90 million home sales fell 1.2 % compared with a year earlier, the first time in 29 months this index decreased compared to the same period last year. Economists had forecast a decline of 2.0% from October to November to an annual rate of 5.04 million .

The Swiss franc fell against the U.S. dollar, which has been associated with the release of unexpectedly weak data on Switzerland. As it became known , the trade surplus narrowed in November, Switzerland , contrary to expectations of improvement. The trade surplus fell to 2112 million Swiss francs from the downwardly revised 2282 million Swiss francs in October. Economists had forecast a surplus of 2.57 billion Swiss francs.

Exports rose for the second month in a row in real terms , after rising by 1.2 percent year on year , after growth of 0.3 percent in the previous month . Imports grew by 1.6 per cent per annum , after falling 2.7 percent in October. Jewelery exports hit a record high in November , while exports of chemicals and pharmaceuticals showed the biggest decline in two years.

Market Focus
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer
Open Demo Account & Personal Page
I understand and accept the Privacy Policy and agree to my name and contact details being used by TeleTrade to contact me about this.