• American focus: the yen declined significantly against the U.S. dollar

Market news

28 March 2014

American focus: the yen declined significantly against the U.S. dollar

The euro retreated from its session high against the dollar, but continues to trade with a slight increase . Currency was supported data for the euro area , which showed that the level of economic confidence improved in March, more than expected, owing much more confident consumers. Economic sentiment index rose to 102.4 from 101.2 in February , when he was predicted to rise to 101.3 . The index of business optimism in the industry as a whole remained unchanged at -3.3 as a result of expectations of managers relative to the total portfolio of orders and stocks of finished goods . Increased confidence in the services sector by 0.9 points to 4.2 was caused by a more positive assessment last business situation and past demand, which contrast with the pessimistic view of the expected demand . Consumer confidence index was particularly growing , registering the strongest monthly increase since April 2009 . The indicator rose to -9.3 from -12.7 last month. Retailers confidence index was -2.6 compared to -3 in February. Meanwhile , the indicator for construction fell to -28.8 from -28.5 .

Made a slight negative data for Germany . They showed that consumer prices in Germany rose in March by 0.3 % compared with the previous month , after rising 0.5% in February this year . In annual terms, inflation in Germany in March was 1% after 1.2% last month. Consumer prices calculated according to the standards of the European Union in March rose 0.3% on the month and increased by 0.9 % per annum.

Analysts point out that " although recent confidence indicators confirmed baseline scenario ECB economic recovery , inflation falls short of expectations , and probably , this situation will be maintained and further. It is not expected that the ECB will react to a single release, but inflation rates on Monday may be the last straw , to determine the final position of the Governing Council of the ECB , which is still dominated by doubt . "

British pound moderately higher against the U.S. dollar, weak responding to the final GDP data . UK economic growth coincided with a preliminary evaluation at the end of 2013 , data showed on Office for National Statistics released Friday . Gross domestic product grew 0.7 percent sequentially in the fourth quarter , according to the second estimate published on February 26. In annualized GDP rose by 2.7 percent , as well as the previous estimate . At the same time , economic growth in 2013 was revised down to 1.7 percent from 1.8 percent . In turn , the British consumer confidence index reached its highest level since August 2007 against the background of the optimistic expectations of the general economic trends and personal finance . On Friday reported research group GfK. Consumer sentiment index was -5 in March compared with February -7 . Projected growth to -6 . All five measures used to calculate the index , showed an increase in this month. Score personal financial situation over the past twelve months rose to -11 from -13 in February, and their expectations rose slightly to 5 from 4 . Measure of the overall economic situation in the country last year rose by 2 points to -15 . In addition , expectations for the next year rose 2 points to 4 . Index " climate for major purchases " rose four points this month to -7 . Meanwhile, the index " now is a good time for savings" fell two points to -14 .

The yen declined significantly against the U.S. dollar , losing almost 100 points . Explanation for this may be the growth dynamics of stock markets and U.S. bond yields , and, of course , the tax increase on April 1. We also add that market participants continue to assess today 's inflation data , which suggest that the Bank of Japan adopted measures to achieve the inflation target of 2% produce results . National consumer price index in February rose by 1.5% compared with the same period of the previous year , after rising by 1.4%. Meanwhile , CPI Tokyo, which is a leading indicator , in March rose by 1.3 % compared with the same period of the previous year , after rising by 1.1%.

Market Focus
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