The euro exchange rate fell slightly against the dollar, losing previously won positions . Little impact on the bidding had U.S. data on retail sales and inventories , which confirmed the experts' predictions . Statements were important members of the Federal Open Market Plosser and Fisher . President of the Federal Reserve Bank of Philadelphia Charles Plosser said that the weak employment report for December will force the central bank to refrain from exercising its plans to curtail purchases of bonds . Plosser gave a reassuring speech on the prospects of the economy. According to him, there's no reason that the Fed could abandon the collapse of asset purchases .
During his speech, the representative of the Fed Fisher expressed commitment that the Fed started to cut bond purchases , but still said that the first cut should have been larger. Meanwhile , Fisher added that the Fed is facing enormous difficulties trying to manage liquidity .
Fisher also said that the market correction is not necessarily undermine the economic recovery . In his speech, he also said that he would not mind the correction in the stock market if the economic indicators are good .
Fisher also said that the Fed provided the markets too much liquidity , and liquidity the Fed clouded perception of investors. An important point of his speech were the words that the Fed is important to go ahead and complete the purchase of bonds
Pound rose against the U.S. dollar, after data indicated the slowdown in inflation in Britain. As it became known , inflation fell unexpectedly in December and reached the target level of 2 per cent of the Bank of England for the first time since 2009. Consumer prices rose by 2 percent year on year , after rising 2.1 percent in November. According to forecasts , inflation was to remain stable at 2.1 per cent . But on a monthly basis , consumer prices rose by 0.4 percent , which is faster than the growth of 0.1 percent posted in the previous month .
Excluding energy , food, alcoholic beverages and tobacco products , core inflation declined ">In a separate statement, the ONS said inflation producer prices accelerated to 1 percent in December from 0.8 percent a month earlier. Compared to November , prices for products remained unchanged .
Purchase prices , at the same time , decreased the second consecutive month in December. Prices fell by 1.2 per cent per annum, after easing to 1 percent in November . On a monthly basis the purchase prices increased by 0.1 percent.
The yen fell against the U.S. dollar , which primarily was due to the publication of a report on the current account deficit in Japan . In November, this figure increased to a record , as imports grew . This again highlights the problems for Prime Minister Shinzo Abe, who is trying to achieve sustainable economic growth. Index reached 592.8 billion yen ( $ 5.7 billion ) , the Finance Ministry said today in Tokyo. According to the median estimate of the deficit had to make 368.9 billion yen . The weakness of the yen and the additional demand for energy due to the closure of nuclear facilities have the most direct impact on Japan's imports . Sustained deficit is a major problem for the country because it could undermine investor confidence in the Japanese government debt.
Furthermore, the pressure on the currency was the U.S. data , which showed that retail sales rose 0.2 % last month , in line with expectations . Car sales fell 1.8 % , pulling down the broader indicators . For the automotive industry, this was a record year , and the slowdown in December is considered more a reflection of poor weather conditions and calendar amendments than the beginning of a new trend. Excluding autos, retail sales rose by December confident 0.7%. Value of retail sales for previous months were revised down to an increase of 0.5 % in October and in November, rising by 0.4%. Total retail sales for 2013 increased by 4.2 % compared with the previous year , slowing the pace of 2012 to 5.4% and 7.5% growth in 2011 .
EUR/USD $1.3550
USD/JPY Y103.30, Y103.50, Y104.00, Y104.70, Y104.75, Y105.00, Y106.00, Y106.50
GBP/USD $1.6425
GBP/JPY Y168.40
AUD/USD $0.8900, $0.8950, $0.9050
NZD/USD $0.8275
USD/CAD C$1.0800, C$1.0900
07:45 France CPI, m/m December 0.0% +0.4% +0.3%
07:45 France CPI, y/y December +0.7% +0.8% +0.7%
09:30 United Kingdom Retail Price Index, m/m December +0.1% +0.5% +0.5%
09:30 United Kingdom Retail prices, Y/Y December +2.6% +2.7% +2.7%
09:30 United Kingdom RPI-X, Y/Y December +2.7% +2.8%
09:30 United Kingdom Producer Price Index - Input (MoM) December -0.7% -0.2% +0.1%
09:30 United Kingdom Producer Price Index - Input (YoY) December -1.0% -1.1% -1.2%
09:30 United Kingdom Producer Price Index - Output (MoM) December -0.2% +0.2% +0.1%
09:30 United Kingdom Producer Price Index - Output (YoY) December +0.8% +1.1% +1.0%
09:30 United Kingdom HICP, m/m December +0.1% +0.6% +0.4%
09:30 United Kingdom HICP, Y/Y December +2.1% +2.1% +2.0%
09:30 United Kingdom HICP ex EFAT, Y/Y December +1.8% +1.8% +1.7%
10:00 Eurozone Industrial production, (MoM) November -0.8% Revised From -1.1% +1.6% +1.8%
10:00 Eurozone Industrial Production (YoY) November +0.5% Revised From +0.2% +0.8% +3.0%
The euro rose against the U.S. dollar after strong data on industrial production in the euro area . Eurozone industrial production in November rose at the highest rate in three and a half years , indicating that the currency bloc 's GDP at the end of 2013 , probably increased the third consecutive quarter .
Unexpectedly strong growth in manufacturing eurozone reduces doubts about the sustainability of economic recovery . Although the results of the poll in the business world in the last quarter of 2013 were positive , the official data were weak industrial production , production in construction and retail sales fell in October .
Statistical Office of the European Union reported that industrial production in November rose by 1.8% compared to October , and by 3% compared with the same period last year. These data were better than forecast.
October data were revised upward . In Eurostat reported that industrial production in October fell by 0.8 %, whereas the previously reported 1.1% decline .
Growth in industrial production in November compared with the previous month was the highest since May 2010 , when it rose by 2%. Annualised growth was the highest since August 2011 , when industrial production grew by 5.5%.
The British pound rose against the U.S. dollar on data on slowing inflation in Britain. Inflation in the UK fell unexpectedly in December and reached the target level of 2 per cent of the Bank of England for the first time since 2009, the Office for National Statistics reported .
Consumer prices rose by 2 percent year on year , after rising 2.1 percent in November. According to forecasts , inflation was to remain stable at 2.1 per cent .
But on a monthly basis , consumer prices rose by 0.4 percent , which is faster than the growth of 0.1 percent posted in the previous month .
Excluding energy , food, alcoholic beverages and tobacco products , core inflation declined ">In a separate statement, the ONS said inflation producer prices accelerated to 1 percent in December from 0.8 percent a month earlier. Compared to November , prices for products remained unchanged .
Purchase prices , at the same time , decreased the second consecutive month in December. Prices fell by 1.2 per cent per annum, after easing to 1 percent in November . On a monthly basis the purchase prices increased by 0.1 percent.
EUR / USD: during the European session, the pair rose to $ 1.3699
GBP / USD: during the European session, the pair rose to $ 1.6448
USD / JPY: during the European session, the pair rose to Y103.75
In the U.S. at 13:30 GMT will change in the volume of retail trade , the change in retail sales excluding auto sales , the change in volume of retail trade turnover , excluding sales of cars and fuel, the import price index for December at 15:00 GMT - change in stocks in commercial warehouses for November. At 23:30 GMT Australia will release the consumer confidence index from Westpac in January , the index of leading indicators of economic activity from the Westpac-MI in December.
EUR/USD $1.3550
USD/JPY Y103.30, Y103.50, Y104.00, Y104.70, Y104.75, Y105.00, Y106.00, Y106.50
GBP/USD $1.6425
GBP/JPY Y168.40
AUD/USD $0.8900, $0.8950, $0.9050
NZD/USD $0.8275
USD/CAD C$1.0800, C$1.0900
05:00 Japan Eco Watchers Survey: Current December 53.5 54.2 55.7
05:00 Japan Eco Watchers Survey: Outlook December 54.8 54.3 54.7
The yen dropped against all of its 16 major peers after data showed Japan’s current-account deficit widened to a record in November. Japan posted a record 592.8 billion yen ($5.73 billion) shortfall in its current account in November, the broadest measure of international trade, according to a Ministry of Finance report released in Tokyo today. The yen tends to strengthen during a period of financial turmoil because the nation had an annual current-account surplus since at least 1985, making it less reliant on foreign capital.
Government data showed today investors in the Asian nation increased holdings of dollar bonds for a fifth month, as economists forecast the Bank of Japan will boost asset purchases this year that hold domestic yields at the lowest globally.
The yen fell against the dollar after Osaka-based Suntory Holdings Ltd. agreed to buy Beam Inc. in the U.S. for $16 billion.
The Bloomberg Dollar Spot Index snapped a three-day decline before Charles Plosser from the Federal Reserve Bank of Philadelphia and Richard Fisher from the Dallas Fed speak today. Plosser, an opponent of bond purchases by the Fed, said earlier this month policy makers shouldn’t try to make up for a permanent loss in potential growth caused by the financial crisis. Fisher argued for a $20 billion reduction in the central bank’s monthly bond purchasing pace instead of the $10 billion announced last month. The regional Fed chiefs and other voting members of the Federal Open Market Committee next meet on Jan. 28-29.
The New Zealand dollar extended a gain from yesterday versus its Australian peer after reports showed business confidence surged to an almost 20-year high in the smaller nation.
EUR / USD: during the Asian session, the pair traded in the range of $ 1.3655-70
GBP / USD: during the Asian session, the pair traded in the range of $ 1.6375-00
USD / JPY: during the Asian session, the pair rose to Y103.55
Tuesday sees a full calendar on both sides of the Atlantic, with a list of data releases and central bank speakers. The European calendar kicks off at 0700GMT, with the release of the December wholesale prices index. French data due at 0700GMT sees the release of the November current account and the December HICP data. HICP is expected to rise 0.4% on month, up 0.9% on year. At 0800GMT, ECB Governing Council member Ewald Nowotny speaks at the Euromoney Central and Eastern European Forum 2014, in Vienna. Italian December final HICP will be released at 0900GMT and is seen up 0.6% on year. At 1000GMT, the EMU November industrial output numbers will be released and is seen up a seasonally adjusted 1.4%. At 1800GMT, Bundesbank Vice-President Sabine Lautenschlaeger will speak on "European bank union: status quo and outlook." Then, at 1830GMT, Spanish Prime Minister Mariano Rajoy will deliver a speech in Washington. UK inflation data due at 0930GMT and will be in focus, most see the y/y number to remain unchanged at 2.1% though others comment that last year's increase in energy prices could feed through to raise that to 2.2%.
(pare/closed(00:00 GMT +02:00)/change, %)
EUR/USD $1,3672 +0,06%
GBP/USD $1,6382 -0,61%
USD/CHF Chf0,8988 -0,40%
USD/JPY Y102,98 -1,05%
EUR/JPY Y140,78 -1,00%
GBP/JPY Y168,59 -1,73%
AUD/USD $0,9052 +0,64%
NZD/USD $0,8374 +0,91%
USD/CAD C$1,0859 -0,37%
02:00 China New Loans December 625 589
05:00 Japan Eco Watchers Survey: Current December 53.5 54.2
05:00 Japan Eco Watchers Survey: Outlook December 54.8 54.3
07:45 France CPI, m/m December 0.0% +0.4%
07:45 France CPI, y/y December +0.7% +0.8%
09:30 United Kingdom Retail Price Index, m/m December +0.1% +0.5%
09:30 United Kingdom Retail prices, Y/Y December +2.6% +2.7%
09:30 United Kingdom RPI-X, Y/Y December +2.7%
09:30 United Kingdom Producer Price Index - Input (MoM) December -0.7% -0.2%
09:30 United Kingdom Producer Price Index - Input (YoY) December -1.0% -1.1%
09:30 United Kingdom Producer Price Index - Output (MoM) December -0.2% +0.2%
09:30 United Kingdom Producer Price Index - Output (YoY) December +0.8% +1.1%
09:30 United Kingdom HICP, m/m December +0.1% +0.6%
09:30 United Kingdom HICP, Y/Y December +2.1% +2.1%
09:30 United Kingdom HICP ex EFAT, Y/Y December +1.8% +1.8%
10:00 Eurozone Industrial production, (MoM) November -1.1% +1.6%
10:00 Eurozone Industrial Production (YoY) November +0.2% +0.8%
13:30 U.S. Retail sales December +0.7% +0.2%
13:30 U.S. Retail sales excluding auto December +0.4% +0.4%
13:30 U.S. Import Price Index December -0.6% +0.3%
15:00 U.S. Business inventories November +0.7% +0.4%
17:45 U.S. FOMC Member Charles Plosser Speaks
18:20 U.S. FOMC Member Richard Fisher Speaks
21:30 U.S. API Crude Oil Inventories January -7.3
21:45 New Zealand Food Prices Index, m/m December -0.2%
21:45 New Zealand Food Prices Index, y/y December +1.4%
22:45 New Zealand REINZ Housing Price Index, m/m December +1.2%
23:30 Australia Westpac Consumer Confidence January -4.8%