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Yesterday, the yen fell against the dollar to its lowest level since April 2011, as the election in Japan won Shinzo Abe, who is committed to the further expansion of monetary stimulus. At the same time, Abe called for the central bank to extend the threshold to 2% inflation and spend unlimited easing to revive economic growth. Note that the discussion of these issues will be held at a meeting of the Bank of Japan, which is scheduled for December 19-20. In addition, it is believed that during this session, the Bank of Japan may announce the expansion of the leniency program.
The dollar rose against most major currencies, as the negotiations on the U.S. budget remain. Note that if the politicians can not find a compromise before the end of this year, from January 1, you will automatically increase taxes and spending cuts to the tune of more than $ 600 billion, which is known as a "financial cliff." Also exerted pressure on the currency presented data on the index of activity in the manufacturing sector of the New York Fed, which declined sharply, reaching the mark with -8.1, compared to -5.22 in November, while analysts expected that the value of this indicator will increase to -0.3. On the dynamics of trade also affected message that House Speaker John Boehner proposed to raise income tax rates of households whose income is more than $ 1 million a year in exchange for cost containment. Earlier, Boehner previously opposed the increase in the tax rates for all income levels. However, U.S. President Barack Obama, who is in favor of tax increases that started from the amount of income of $ 250,000, rejected the proposal.Significant growth also revealed the Canadian dollar, which has appreciated sharply after the publication of data for Canada, which showed that an investment of Canadians in foreign securities declined much less than expected. According to the report, investment fell to 13.26 billion, compared to 14.12 billion last month, and expectations at around 9.81 billion Canadian dollars.
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