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Forex

The British pound was down against the U.S. dollar on a background of mixed data on industrial production

March 12, 2014, Wednesday, 11:24 GMT | 07:24 EST | 15:54 IST | 18:24 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

Euro: Euro fell on the background data on the trade balance of Germany. In January, German exports grew more than expected, after a decline in December showed Tuesday, official data agency Destatis. Exports rose by 2.2 % on a monthly measurement in January, rebounding from the 0.9 % drop in December. Exports were projected to grow had 1.5 %. In addition, imports expanded by 4.1 % after falling 1.4 % a month earlier. Growth rate significantly higher than the increase of 1.4 % was expected by economists.
Because of markedly increase import, the trade surplus fell to a seasonally adjusted to 17.2 billion euro in January from 18.3 billion euros in the previous month. In annualized export growth slowed to 2.9 % from 4.5 % in December. Similarly, imports increased by 1.5 %, which is slower than the growth of 2.4 % in December. On an unadjusted basis the current account surplus was 16.2 billion euros in January, compared with 10.6 billion euro surplus, which saw in the corresponding period last year. EUR / USD: during the European session, the pair fell to $ 1.3833

British Pound: The British pound was down against the U.S. dollar on a background of mixed data on industrial production. In the UK, industrial production growth slowed in January, more than expected, while growth in the manufacturing industry remained stable compared to December.
The volume of industrial production increased by 0.1 % compared with December. Issue, according to forecasts, had to expand 0.3 % after 0.5 % growth in December. Manufacturing output rose by 0.4 %, the same as in December and remained above the 0.3 % growth forecast by economists.
The annual increase in industrial output accelerated to 2.9 % from 1.9 %. At the same time, growth in the manufacturing industry increased more than doubled to 3.3 % from 1.4 %.
Today in the British Parliament held a hearing at which the Bank of England and M. Carney MPC members P. Mr. Carney noted that the state of the British economy is improving much faster than in the rest of the world. Over the past few months increased inflation expectations, he said, and suggested that in the next three years, the Bank may raise rates gradually to reach 3.5 %. Carney said that the Central Bank will start folding QE program only after several rate increases, while it does not require consultation with the Treasury on this issue. The GBP / USD pair fell to $ 1.6596 during the European session.


American trading session:

U.S. Dollar: The dollar traded lower against the euro, but was able to recover most of the previously lost positions. Impact on the dynamics had trade balance data of Germany and on wholesale U.S. inventories.
As it became known, in January German exports grew more than expected, after a decline in December. Exports rose 2.2 % on a monthly measurement in January, recovering from the 0.9 % drop in December. Exports are projected to grow had 1.5 %. In addition, imports expanded by 4.1 % after falling 1.4 % a month earlier. Growth rate was significantly higher than the increase of 1.4 per cent expected by economists. Because of the markedly increase import, the trade surplus fell to a seasonally adjusted to 17.2 billion euro in January from 18.3 billion euros in the previous month. In annualized export growth slowed to 2.9 % from 4.5 % in December. Similarly, imports increased by 1.5 %, which is slower than the growth of 2.4 % in December.
Another report showed that wholesale inventories in the U.S. rose more than expected in January. According to the data, wholesale inventories rose 0.6 % in January after raising a revised 0.4 % increase in December. Economists had expected an increase of 0.5 per cent of reserves compared with 0.3 % growth, which was originally reported in the previous month. On the other hand, the Commerce Department reported: Wholesale sales fell 1.9 % in January after rising 0.1 % the previous month.

Japanese Yen: The yen rose sharply against the dollar, while escaping with a narrow range, and reaching high yesterday. Currency appreciation can be explained by the reduced demand for safe-haven assets such as equities and commodities, amid concerns about instability in China's financial system. Besides growth of the yen helped drop in copper prices (fixed for the third day in a row) to the lowest level since 2010.
We add that the Japanese currency barely reacted to the decision to leave the Bank of Japan interest rates unchanged at 0.10%. Board members unanimously voted to keep monetary policy unchanged. By the end of next meeting confirmed the intention to maintain the policy of increasing the monetary base in the range of 60-70 trillion yen annually. The Bank of Japan also confirmed buyback of government bonds in the amount of government about 50 trillion yen and corporate bonds at 2.2-3.2 trillion.

Gold: Gold prices rose today as concerns over a slowdown in China's economic growth and concerns about the crisis in Ukraine undermined risk appetite. The cost of the April gold futures rose to $ 1346.95 per ounce on the COMEX today.

Oil: Prices for WTI crude oil continued its decline yesterday on speculation that a government report will show an increase in U.S. wholesale inventories of oil for the previous week. As the price of Brent Brent, they rose moderately. April WTI futures price fell to $ 100.55 a barrel on the New York Mercantile Exchange.