• American focus : the European currency rose against the U.S. dollar

Market news

10 April 2014

American focus : the European currency rose against the U.S. dollar

The euro rose against the U.S. currency against the backdrop of French data on industrial production and inflation. Also helped strengthen the news on Greece. Note that Greece for the first 4 years is selling government bonds to gain for them more than 3 billion euros , which was above the expectations of the government. Government bonds with a maturity of 5 years and a low rate of 4.95 % used in demand : the government received bids worth over 20 billion euros from potential buyers. Last Greek bonds exposed to the market in March 2010 , and since then the country's economy depended on help from the "troika" of international creditors (European Commission, European Central Bank and International Monetary Fund. The fact that the country has again entered the market loans , is a positive signal for the economic situation in Greece.

Important for the euro were comments and ECB chief economist Peter Preta , who said that the central bank has not changed its assessment on the conservation rates at current or lower levels for a long period . Pret assured that " forward-looking statements " had a positive impact on the currency markets . Markets Trust ECB, which comes true in a low inflation environment , the economist said . He also noted that the eurozone economy remains quite vulnerable. The recovery process in the euro area is still " modest flows , uneven pace , but it covers more countries ." Senior economist at the Bank acknowledged that , while confidence indicators have increased markedly , the activity has not increased at a pace that raises questions.

Pound fell against the dollar, almost completely offsetting while yesterday's rise as the Bank of England left policy unchanged . The Bank of England did not bring any surprises , decided to leave its key rate at a record low of 0.5% , which she held for 5 years ( since March 2009 ), and a program of bond purchases in the amount of £ 375 billion is expected , the bank managers will not change policies in the coming months as the UK economy for a long time in a state of stagnation , once again demonstrates the rapid growth in a low inflation environment .

It should be noted that the heads of the Bank of England signaled its intention to continue the policy of "cheap money " as long as the increasing number of Britons do not find a job , and the economy approaches the functioning at full capacity , provided that inflation will remain under control. Dates of the first interest rate hikes are crucial : if the central bank will have to wait too long, inflation could accelerate sharply , as if he would take action too quickly, the economic recovery could stall .

The yen rose against the dollar , which was associated with the release of data on the reduction of Chinese exports , which increased demand for " safe havens ." The strengthening of the Japanese yen helped decrease expected to raise interest rates after the release of the Fed minutes of the meeting FOMC. The report showed that in March, China unexpectedly recorded a reduction in exports by 6.6 % compared with the same month last year , after falling 18.1 % in February, which was the worst since the financial crisis. Analysts expected export growth by 4.8%. While imports fell last month to 11.1% in February after rising to 10.1% , resulting in a trade surplus of $ 7.71 billion , according to the General Administration of Customs of China. Experts predicted import growth of 3.9% and a deficit of $ 0.9 billion, the Customs Administration of China announced that it expects to improve trade performance in the second quarter amid recovery in global demand .

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