The euro fell against the background data on import prices in Germany
January 29, 2014, Wednesday, 10:00 GMT | 05:00 EST | 15:30 IST | 18:00 SGT
Euro: The euro exchange rate against the U.S. dollar fell against the background data on import prices in Germany. As it was shown by the data published by the Federal Statistical Office, import prices in Germany fell twelfth consecutive month in December, but in a lesser degree than in the previous month. The import price index fell by 2.3 % in December compared with the corresponding month in 2012. This followed a 2.9 % drop in November. Prices are already falling regularly since December 2012. Economists had forecast a slower decline by 2.2 % in December 2013. Index was influenced by a 5 % fall in energy prices as well as falling to 15.5 per cent in the cost of non-ferrous metals. Prices for the products of iron, steel and alloys were 5.4 % lower than a year earlier.
On a monthly basis, import prices were unchanged in December, after an increase in November to 0.1 %. Expectations were level rise by 0.2 %. Overall, in 2013 the import price index fell by 2.6 per cent per annum, after rising 2.2 % in 2012. The decrease was due mainly to a fall 7 % in energy prices.
Department of Statistics also reported that in Germany, export prices decreased at a slower annual rate of 1 % in December compared with a decline of 1.1 % in the previous month. On a monthly measurement of export prices fell by 0.1 %, after being unchanged in November.
At the beginning of the session, some support for the single currency was data on consumer confidence in France. The consumer confidence index rose to 86 in January from 85 in December and 84 in November. Economists had forecast the index to remain unchanged at December. Estimation by consumers of their past financial situation was essentially unchanged in January compared with the previous month. Meanwhile, their expectations of personal finances in the coming months were more optimistic, corresponding sub-indicator rose to -18 from -20 in December.
The survey showed that the number of households that said in January the best time to make major purchases and savings increased. Similarly, their expectations about future ability to save were more optimistic. Measure attitudes households past state of the French economy grew by 2 points to -71 in January. At the same time, their expectations for the future state of the economy showed further improvement. Prospects indicator rose to -45 from -49. The EUR / USD pair rose to $ 1.3690, but then fell to $ 1.3625 during the European session.
British Pound: British pound reacted negatively to the preliminary data on GDP. Economic growth in the UK fell in the last quarter of 2013, and it was a slight slowdown can strengthen the authorities' determination to continue to promote, to support further growth. British National Bureau of Statistics (ONS) said on Tuesday that the gross domestic product in the 4th quarter increased by 0.7 % compared to the 3rd quarter, after rising 0.8% in the previous two quarters.
Compared with the same period of the previous year, the GDP grew by 2.8%. Downturn in the construction industry in November was a major factor slowing, reported ONS, which estimates that production decline in the sector for the quarter was 0.3 %. In other sectors, there was an increase. The GBP / USD pair rose to $ 1.6623, but then fell to $ 1.6535 during the European session.
Japanese Yen: The yen fell to a decline in demand for safe-haven currencies. The reason was an emergency meeting of the committee on monetary policy of the National Bank of Turkey, dedicated to a sharp drop in the national currency - the Turkish lira against the dollar and euro. Currently, market participants insist that the Central Bank of Turkey to set it raised the interest rate. The USD / JPY pair rose to Y103.26 during the European session.
American trading session:
U.S. Dollar: The dollar traded higher against the euro which was influenced by the data on orders for durable goods as well as consumer confidence, which helped regain some positions. As it became known, new orders for durable goods fell 4.3% in December from November to $ 229.3 billion these are the data of the Ministry of Trade. This second drop in three months, and was marked the steepest decline since July. The decrease was due to a decline in demand for civilian aircraft, which is a volatile category. But even excluding the transportation sector, orders for durable goods fell by 1.6 %, showing the biggest drop since March. Economists had forecast an increase of 2 % of orders for durable goods in December. The data indicated that consumers and businesses are still spending cautiously, despite signs that the U.S. economy is gaining strength in recent months of 2013. Another report showed that consumer confidence index from the Conference Board, which rebounded in December, increased again in January. The index is currently 80.7 compared to 77.5 in December. The current conditions index rose to 79.1 from 75.3. The expectations index rose to 81.8 from 79.0 last month.
Canadian dollar: The Canadian dollar declined significantly against the U.S. dollar, reaching at this 4.5 -year low on expectations of further Fed folding and further commitment of the Bank of Canada's policy weak currency. The Fed today begins 2 -day meeting. It expected to further minimize the quantitative easing program. Despite the weakness of the labor market, according to the consensus forecast is expected that the Central Bank will refrain from sharp folding, cutting 75 -billion program gradually, until the end of this year.
Gold: The gold prices declined moderately today, after weak U.S. data on orders for durable goods decreased optimism regarding the strength of the economy, reducing expectations for a further reduction in stimulus from the Fed. Cost February gold futures on the COMEX today dropped to $ 1253.50 per ounce.
Oil: The crude oil futures rose on Tuesday as traders are awaiting the start of a two-day meeting of the Federal Reserve System, the outcome of which will depend on the future dynamics of oil prices. March futures price for U.S. light crude oil WTI rose to $ 97.47 per barrel on the New York Mercantile Exchange (NYMEX).