• American focus : the euro has increased markedly U.S. dollar

Market news

20 December 2013

American focus : the euro has increased markedly U.S. dollar

The euro exchange rate rose sharply against the dollar, while restoring all the previously lost positions , and updating the session high. Helped strengthen the euro currency data that showed pessimism among consumers of the 17 eurozone countries decreased significantly in December , exceeding with evaluation experts, and offsetting deterioration in the previous month. It became known from the latest data , which were presented to the European Commission.

According to the report , a preliminary index of consumer confidence rose to 13.6 points in December , compared with -15.4 points a month earlier. According to the average forecasts of experts, this indicator was improved to the level of -15.0 points.

It should be noted that these data were released today after a report showed that German consumers are more confident in December than expected, which is likely , and helped increase the total index for the euro area .

The latest report is likely to be welcomed by politicians of the European Central Bank, as it indicates that the current year to end on a positive note. Note that in the last months of data showed that unlike Germany, economic growth in France, Italy and Spain was not pleased that caused doubt in accelerating growth in the current quarter . Recall that in the second quarter of the eurozone economy grew by 0.3%.

The yen retreated from a 5- year high , and that was due to the general weakening of the dollar, even though a positive report on U.S. GDP . Experts note that the upward revision of GDP reinforced expectations that the Fed will continue rolling asset purchases in 2014. Key elements are the unemployment rate / p and employment without regard to the / x sector. However, today published a revised GDP is also important , as it reflects the strong growth in consumption, which may contribute to increased employment. Meanwhile, experts said that , despite the fact that today the dollar not strengthened , GDP data will contribute to the growth of the U.S. currency in the medium term .

The Canadian dollar rose against the U.S. dollar by restoring all the previously lost ground. The course of trade a considerable impact on U.S. GDP data , which caused the Canadian dollar to drop significantly , albeit briefly . Later, the market turned its attention to Canadian reports which, although lower than forecast, indicated a slight improvement . Note that one of the reports showed that annual inflation in Canada rose by less than 1% the second consecutive month in November , as higher energy costs and the vegetables were offset by lower prices for mortgage loans on household tools and prescription drugs . Overall consumer price index in November rose by 0.9 % compared with the previous year Growth was higher growth the previous month by 0.7 % , but below market expectations at 1.0% increase .

Core CPI , which excludes volatile components, such as some food and energy , rose 1.1 %, below market expectations of 1.2 % growth and the slowest annual growth rate in five months.

Meanwhile, other data showed that retail sales fell 0.1% in October compared with the previous month to 40.72 billion Canadian dollars ( $ 38,180 million). Market expectations were at the level of growth of 0.3%. In volume terms, sales in October rose 0.2 %. In annual terms retail sales rose 3.0%. Except for the automotive sector Canadian retail sales in October rose 0.4 % for the month and reached 31.21 billion Canadian dollars .

Market Focus
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