• American focus : the euro has grown significantly against the U.S. dollar

Market news

14 March 2014

American focus : the euro has grown significantly against the U.S. dollar

The dollar fell against the euro due to risk aversion amid renewed concerns about the Ukraine and China. Also, the pressure on the currency was weak U.S. data . One report showed that the producer price index, which measures changes in prices of everything from food to energy and transport services decreased by 0.1 % compared with the previous month . Economists had expected a 0.2 % rise . Index for January remained unchanged at 0.2% growth . The index rose 0.9% in February after an annual increase of 1.2% in the previous month .

One more preliminary data , which were presented Thomson-Reuters and the Michigan Institute showed that in March, U.S. consumers feel more pessimistic about the economy than was recorded in the last month. According to reports, in March preliminary index of consumer sentiment fell to 79.9 compared with the final reading for February at 81.6 . It is worth noting that according to the average estimates of experts , the index had to grow compared with the February value to reach 81.9 .

The yen rose against the U.S. dollar , which was due to concerns about events in Ukraine and signs of weakness in the Chinese economy . Note also that the present U.S. Secretary of State John Kerry met with Russian Foreign Minister Sergei Lavrov in London. Lavrov said that Russia will decide on the Crimea only after the referendum , said U.S. Secretary of State John Kerry . " Foreign Minister Lavrov made ​​clear that President Putin is not ready to take a decision before the referendum , which will be held on Sunday," - said John Kerry . The head of the State Department stressed that the U.S. considers the referendum unconstitutional Ukrainian and international law.

Traders also noted the ongoing concerns about the state of China's economy after a series of poor economic performance .

Pound rose against the dollar , while returning all previously lost ground. Impact on the dynamics of the reported data on the trade balance , which were worse than expected , as well as the words of the deputy governor of the Bank of England's Monetary Policy Charles Bean . Bean noted that further deterioration of foreign income could harm the UK pound. According to Bean , the recent decline in net investment income Britain is unlikely to completely unfold . "In my opinion , the situation may recover slightly , but she did not return to the levels before the financial crisis . Undoubtedly, due to the negative net balance we vulnerable , making a sharp depreciation of the pound is more likely that if investors lose confidence in the economy . We saw it happen in emerging markets , "said Bean .

Market Focus
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