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The euro rose against major currencies, responding thus to the completion of a two-month political crisis in Italy. On Saturday, Enrico Letta officially took over as prime minister of Italy. On Sunday, Italy's new government, which was formed from the representatives of the Democratic Party, the "People of Freedom" and "The Civil choice", has taken the oath. Note that a slight pressure on the single currency was weak data on the index of sentiment in the business environment and the economy of the region, which were worse than expected. However, the decline in the euro after the data was limited to the publication of information on the last auction of government bonds in Italy, the results of which are much better than previous similar.
Add that little impact on the dynamics of trade affected, and U.S. data, which showed that the number of pending home sales rose in March by 1.5% to 105.7, what happened after the fall of 1% (to 104.1) in February. We add that, according to the average forecast of economists, this indicator would grow by 1.1%. In addition, the data showed that the annualized amount of outstanding home sales rose by 7.0% compared with March of last year, registering with the 23rd consecutive monthly gain.
In addition, another report showed that personal spending, which measure the amount of purchases, from cars and clothing to health care and heating, rose last month by 0.2%, which was followed, after rising 0.7% in February. Economists note that the slowdown in spending have fueled drop in gasoline prices. Note that consumer spending accounts for about two-thirds of economic activity in the United States, and Americans tend to spend more when incomes rise, giving a potential boost to growth. Meanwhile, it was reported that incomes rose by only 0.2%, possibly reflecting weak job growth.
The Canadian dollar rose to a two-week high against the dollar, helped by a rise in oil prices, which is the country's largest export, as well as speculation that the U.S. will support the incentive program, and the European Central Bank will cut interest rates. Note also that contributes to the strengthening of the fact that tomorrow will be published data on the growth of the gross domestic product of Canada in February. It is predicted that the economy will expand by 0.2%, which corresponds to the January increase. Experts also point out that the growth of currency help the submitted data on U.S. GDP, which is the largest trading partner of Canada. Recall that GDP in the last quarter grew by 2.5 per cent per annum, compared with forecasts of 3 percent.
The pound strengthened to a 10-week high against the dollar as a report showed that house prices in the UK increased this month, boosting optimism about the fact that the recovery is gaining momentum. Also the growth of currency helps a government report that showed that the UK economy has avoided a recession in the last quarter, dropping speculation that the Bank of England will raise incentives. Note that the next meeting of the Bank of England will take place on May 8-9. Economists say that after the split policy this month to agree on whether to increase the size of the program to purchase assets, at the next meeting of the data differences may be reduced.
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