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The dollar fell under the little impact on weak retail sales data

February 14, 2014, Friday, 13:53 GMT | 09:53 EST | 18:23 IST | 20:53 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

Euro: The euro rose against the U.S. dollar on a background of the ECB Monthly Report and data on inflation in Germany. The ECB in its February report indicated that inflation in the euro area should remain low for an extended period of time before it starts to gradually recover to the target of 2%. “Comparison with the monetary analysis confirms the reduced prices in the euro area in the medium term," said the ECB.

According to a study of professional forecasters, forecast HICP in 2014 was revised to 1.1 % from 1.5% previously. Forecast for 2015 was lowered to 1.4 % from 1.6 % in Q4. The forecast for 2016 was 1.7 %.

With respect to data for Germany, inflation, agreed by EU standards, remained unchanged in January, according to preliminary estimates. These are the latest data from the Federal Statistical Office. Harmonized index of consumer prices (HICP) increased by 1.2 percent per annum in January, the result was unchanged compared with the growth rate in December. Outcome corresponded to preliminary estimates. HICP fell by 0.7 percent compared to December, when it recorded a growth of 0.5 percent. Monthly changes are also consistent with preliminary estimates. The Statistical Office also reported that consumer price inflation fell to 1.3 percent in January from 1.4 percent in December, according to initial estimates. Moderation in inflation mainly reflects a downward trend in prices for mineral oil products. In contrast, the cost of electricity and solid fuel increases. In monthly terms, the consumer price index fell by 0.6 percent in early 2014. This followed an increase of 0.4 percent in December. The EUR / USD pair fell to $ 1.3687 during the European session.

British Pound: The British pound strengthened on published data on the UK housing market, according to which in January house price balance of RICS fell to 53 %, compared with 56 % earlier in December. Recall that the index is calculated as the proportion of subtraction of respondents who reported a decline in prices, the share of those who reported an increase in prices. Nevertheless, it is worth noting that the demand for homes remains strong. “It’s no secret that we have seen a rise in prices in many parts of the country due mainly lack of objects represented in the market. Given the fact that more people are now turning to buy a home than at any time in recent years, the number of objects is simply not enough to meet demand. The result is a rise in prices in many areas, and it seems to continue for the foreseeable future "- says Peter Bolton King of the RICS. The survey also showed that the evaluators continue to expect prices to rise over the coming year. The GBP / USD pair rose to $ 1.6657 during the European session.

American trading session:

U.S. Dollar: The dollar fell under the little impact on the U.S. data, which showed that retail sales fell 0.4 percent last month, led by a drop in car sales. Sales fell by a revised 0.1 percent in December. Economists had forecast that retail sales will be unchanged in January after rising 0.2 percent in December, which was reported earlier. Meanwhile, another report showed that the number of initial claims for unemployment benefits, a measure of layoffs, increased by 8000 and amounted to a seasonally adjusted 339,000 in the week ended February 8. The result was slightly higher than the 331,000 projected by economists. Meaning last week 331,000 remained without revision.

Canadian dollar: The Canadian dollar rose against the U.S. dollar, which was associated with the release of data on Canada. As it became known, Canadian prices for new homes rose slightly in December, while the increase at an annual rate showed the slowest 12-month increase in nearly four years. The prices for new homes across the country increased by 0.1 % in December on a monthly measurement. Note that prices for new homes in the previous month showed zero change. A 12 -month basis, prices rose by 1.3%, which corresponded to the market consensus forecast and represented the weakest 12-month gain since February 2010. Rising prices in monthly terms led the Greater Toronto, where the cost of a new home rose 0.2%, the largest increase since July. In 2013, the average annual increase in the price of new homes was 1.8 %, compared with 2.4 % in the previous year, and became the smallest increase since 1999.

Gold: The gold prices rose today, reaching a three-month high at the same time, and closer to $ 1,300 per ounce, as disappointing economic data from the United States put pressure on the dollar and the stock markets.

Oil: March futures price for U.S. light crude oil WTI fell to $ 100.24 a barrel on the NYMEX. The fall in prices was also due to the Report on the United States, which showed that the number of initial claims for unemployment benefits, a measure of layoffs, increased.