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Euro fell against the U.S. dollar , which was associated with the comments of representatives of the ECB. Note that today, ECB Governing Council member Christian Noyer that interest rates should remain low for an extended period of time , and if necessary they can be further reduced , as officials try to ensure price stability in the euro area .
"If regular monetary policy stops working , in order to achieve price stability, the central bank must " invent " policy" , - said Noyer , suggesting that after a sudden deceleration of inflation , the ECB leaves all options open. "We see a risk that inflation will remain low for some time . We will keep interest rates low for an extended period of time , or even lower , if it is necessary for price stability , " Noyer said .
Meanwhile, ECB executive board member Benoit Ker said that at the moment disinflation in Europe is likely to continue , but will not progress to deflation , because the economy recovers , and inflation expectations remain at around 2 percent. Ker said that the European economy is stabilizing and strengthening the banking sector , but policymakers need to make progress in structural reforms to reduce unemployment and stimulate business investment .
Several euro recoup their losses and retreated from the lows after the latest data from the National Association of Realtors U.S. dollar weakened . The data showed that the number of Americans who signed contracts to buy housing on the secondary market, unexpectedly fell in October , registering with the fifth consecutive monthly decline . Such dynamics is a sign that higher prices and borrowing costs have a negative impact on the housing market recovery .
According to the report , the seasonally adjusted index of pending sales of existing homes fell last month by 0.6 % - to the level of 102.1 , reaching its lowest level in nearly a year . Economists forecast that the value of this indicator will increase by 2.2% , after falling 4.6 % in September ( was revised downward from 5.6% ) .
Pound declined significantly against the dollar after a report showed that the number of mortgage approvals in the UK fell unexpectedly in October. According to the data , the number of mortgages approved for home purchase in October was 42,808 , compared with 43,182 in September. Economists forecast that the value of this index will rise to the level of 45200 .
Nevertheless , it became known that the number of permits for house purchase increased by 33 percent compared to October last year. Note that this growth contributed to the government scheme " help with buying " as well as a mortgage program for those who are first-time buyers .
Meanwhile, data showed that gross mortgage lending was 9.9 billion pounds ($ 16.060 billion ) in October , which was the highest level since December 2009 (when lending stood at £ 10 billion ) . We also recall that in September this indicator was at 9.7 billion pounds . In October last year the volume of lending was 7.5 billion pounds .
In the British Bankers' Association also reported that bank lending to non-financial firms fell to 940 million pounds in October, which followed the growth of 2.234 billion pounds in September. This implies that the demand from firms and access to bank loans is impaired .
The yen fell to a six-month low against the dollar after reaching an agreement with Iran on its nuclear program . Iran and "six" ( five permanent members of the UN Security Council and Germany) on Sunday night during the next round of talks in Geneva have reached an agreement on the Iranian nuclear program ( INP) . Within six months, Iran " freeze " its nuclear program and halt construction of a reactor in Arak . Western countries , in turn, will remove economic sanctions against Tehran . After the deal with Iran , the market is a better attitude towards risk.
Also this week, Statistics Bureau of Japan may report that consumer prices in the country rose in October by 0.9 % in annual terms , after rising 0.7 % the previous month . The acceleration of inflation will testify to the success of efforts to restore the Bank of Japan's economy. Today in Tokyo, Japan's deputy finance minister said that deflation in the country coming to an end and the economy starts recovering.
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