• American focus: the dollar regained earlier lost ground against the euro

Market news

14 July 2015

American focus: the dollar regained earlier lost ground against the euro

The dollar rose sharply against the euro, returning to the level of opening of the session. Analysts said pressure on the euro has a continuing concern about the situation in Greece, where the parliament should vote for tomorrow, recently reached an agreement. Prime Minister Alexis Tsipras country be until Wednesday night to push through parliament a package of radical measures, which are still absolutely unacceptable for many of his party members, but without which Athens will not be able to start negotiations with creditors and - to escape from imminent bankruptcy. Meanwhile, experts expect that the ECB will continue to fund Greek banks until the end of the negotiations on a new program of assistance. ECB Governing Council kept the amount of emergency financing programs at the level of 89 billion euros, but probably will decide to increase it after the Greek government on Wednesday approved the implementation of the necessary measures.

In the course of trading will also affect the expectations of tomorrow's speech by Federal Reserve Janet Yellen before the Senate Banking Committee to give any hints on the possible terms of a rate hike in the United States. Last week, Fed Chairman Yellen said that the central bank retains plans to raise interest rates this year, but warned that the weakness in the labor market persists. It is worth stressing, expectations of rate hikes led to the fall in gold prices by 2.5 per cent this year.

Previously, the pressure on the dollar was US data. The Commerce Department reported that sales in the retail and restaurants decreased by 0.3% compared with the previous month to a seasonally adjusted reached $ 442 billion. In June Economists had expected growth in June to 0.3%. Retail sales rose 1% in May, compared with the originally reported 1.2% gain. Sales in April were unchanged, reflecting a downward revision from the previously reported 0.2% increase. The decline last month was broad-based, with a drop in sales in several categories, including furniture and clothing stores, auto dealers in building materials and garden materials and suppliers. Excluding autos, sales fell 0.1% in June. And with the exception of gasoline sales fell by 0.4%. With the exclusion of both categories of sales decreased by 0.2% last month.


The pound has appreciated significantly against the US dollar, which was a reaction to the comments of the Bank of England. During his speech, Carney said that the moment of a rate hike is getting closer. He noted that monetary policy has become more accommodative. He added: "In the next 3 years, I do not foresee a scenario in which rates could reach historic levels." He also noted that a key factor for the growth of consumption is to increase wages, and expressed the hope that the announced in the July budget increase in the minimum wage should favorably affect performance. In the matter of productivity supported him colleague CB McCafferty. McCafferty said: "The normalization of rates may support the performance." Monetary authorities are believed to be that the pace of rate hikes will be gradual. Commenting on the inflationary dynamics, MPC member Miles said that inflation expectations are still confident enough restrained. "

A slight pressure on the pound have inflation data, which showed that the CPI remained unchanged on an annual basis in June, as expected by economists, after rising 0.1 percent in May. Core inflation, which excludes energy, food, alcoholic drinks and tobacco decreased slightly to 0.8 percent in June from 0.9 percent in May.

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