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16.04.2014 17:40

American focus: the euro fell

The U.S. dollar rose against the single currency after data on promyshlennnomu production. The Federal Reserve said that by the end of last month, the volume of industrial production increased markedly . Last improvement - a sign of recovery sector after the winter slowdown.

According to the report , March industrial output rose a seasonally adjusted 0.7% , compared with growth of 1.2% in the previous month, which was revised upward from 0.6 %. We also add that the capacity utilization rate - the effectiveness of the sensor in various industries - rose by 0.4 percentage points - to the level of 79.2% . Economists had forecast growth of 0.5%, and reduced capacity utilization to 78.4 %.

Also some support for the dollar was data on the housing market . Housing starts continued to grow last month, but the broader trends suggest that the downturn in the market .

Ministry of Commerce announced that the seasonally adjusted number of housing starts rose in March by 2.8% - to the level of 946 thousand , which was mainly due to the increase in single-family homes sector . We also add that the figure for February was revised upwards to 920 thousand from 907 thousand Nevertheless , other figures indicated that the recovery remains uneven. Compared to last year the construction of new housing fell by 5.9%. Also note that the number of building permits - an indicator of future construction - fell by 2.4% in March from February - to a level of 990,000 , registering the fourth drop in the past five months. Many experts expect that the construction of new housing will rise to 970 thousand , and the number of permits to fall to 1.0 million

Euro rate previously increased markedly against the dollar in anticipation of the CPI data , but as the report itself is not pleased , currency movement stalled. At Statistics reported that by the end of March inflation fell to its lowest level since November 2009 , keeping pressure on the European Central Bank . According to the report , on an annual basis the March consumer price index rose by 0.5 percent , compared with an increase of 0.7 percent in February . Last result coincided with forecasts of experts. The greatest increase in prices was observed on tobacco, restaurant meals , milk, cheese and eggs , and showed the biggest decline heating oil and fuel. Core inflation rate , which ignores volatile items such as food and energy , fell to 0.7 percent from 1.0 percent in February (the lowest since December 2013). It was expected that figure fell to 0.8 percent. Note that inflation is below 1 percent for six consecutive months , increasing speculation that the ECB will need to take further measures . The ECB said the bank use unconventional measures to ensure that inflation does not remain at a low level for too long.

Pound rose sharply against the U.S. currency , which helped optimistic data on the labor market in Britain. The Office for National Statistics said that for three months ( to February), the unemployment rate fell to a five-year low , and was 6.9 percent, compared with 7.2 percent in the three months to January. Experts expect that this figure will remain unchanged. We also add that the overall wage growth accelerated to 1.7 percent in the three months to February , compared with 1.4 percent in the previous three-month period . It was the first time since April 2010, when the growth rate of wages keep pace with the consumer price index . Economists , however, expect to see growth in this index by 1.8 percent . Furthermore, it became known that the number of people claiming unemployment benefits fell in March, slightly more than expected - to 30 400 , and totaled 1.142 million people ( the lowest level since November 2008 ) . The figure for February was revised up to 37,000 from 34,600 . Experts predicted that in March the number of applications dropped by 30 200 people.

The yen fell against the dollar , reaching a minimum in this week , which was associated with the statements of the representatives of the Japanese authorities and the sharp rise in the index Nikkei. Today Nikkei index rose by 3% due to improving risk sentiment in Asia. Inverse relationship between the dynamics of the index and the yen led to a breakthrough pair USD / JPY level Y102.00. Meanwhile, adding that today the Bank of Japan Haruhiko Kuroda said in Parliament : the Central Bank will make every possible effort to achieve a 2% inflation target . He also tried to ease fears that the recent volatility in the Japanese stock market undermines economic growth in the country. At the same time he rejected criticism of the fact that mitigation measures of central bank policy is the main cause of volatility indices.

The Canadian dollar rose and then fell against the U.S. dollar against the decision and accompanying statement of the Bank of Canada. The Bank of Canada on Wednesday reiterated its concerns about low inflation , leaving the key overnight rate at 1% , and lowered the forecast for GDP growth in 2014 due to a slowdown in exports and investment companies.

Although the rise in energy prices and reduced the Canadian dollar will push overall inflation to the target level of 2% by early next year , underutilization of capacity in the economy and fierce competition in the retail sector will keep base prices below the target level of 2% prior to 2016. This is stated in a statement issued Wednesday by the Bank of Canada interest rates, which emphasizes its neutral position. Risks associated with the imbalances of the housing sector - a strong housing market and record household debt - remain elevated , said the Bank of Canada .

" Because core inflation is expected to remain for some time below the target level , the downside risks to inflation remain important ," - said the Bank of Canada , repeating line that appears in the March statement. The balance of risks " is still in the zone for which the current policy stance is appropriate." "Timing and direction of the next rate change will depend on how the new data will affect the balance of risks ," - said in a statement the central bank.

16.04.2014 17:20

European stocks close

Market Focus

  • The Bank of Japan decided by a 7-2 majority vote to hold the interest rate at -0.10%
  • Earnings Season in U.S.: Major Reports of the Week
  • U.S. commercial crude oil inventories decreased by 4.7 million barrels from the previous week
  • Australian unemployment rate stable at 5.6% in June
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