The Euro fell against the U.S. dollar despite the strong data on the labor market in Germany sentiment in the eurozone economy
January 31, 2014, Friday, 09:41 GMT | 05:41 EST | 15:11 IST | 17:41 SGT
Euro: Euro fell against the U.S. dollar despite the strong data on the labor market in Germany sentiment in the eurozone economy. German unemployment fell in January, more than forecast, as companies were more confident in the strength of Europe's largest economy. Number of people out of work fell by a seasonally adjusted 28,000 to 2.93 million, after falling by 19,000 in December, reported the Federal Labour Agency. Economists had forecast a drop of 5000. Adjusted unemployment rate was 6.8 %, almost unchanged from December, and remained near the minimum of twenty years. Unemployment fell by 16,000 in West Germany and 12,000 in the eastern part.
In turn, in the euro area level of economic confidence rose ninth consecutive month in January, data showed on Thursday a survey from the European Commission.
Economic sentiment index rose to 100.9 in January from 100.4 in the previous month. But at the same time the reading was slightly lower than expected level of 101.Confidence in industry fell unexpectedly by 0.5 to -3.9 in January, as a consequence of the management worsened assessment of stocks of finished products. The result was predicted to improve to -3.0. Confidence in the services sector grew by 1.9 points to 2.3, resulting in improved estimates of expected demand and past business situation, while the assessment of the past demand has not changed much. In addition, consumer confidence has improved markedly to 11.7, being in accordance with a preliminary estimate, compared with 13.5 in December. The increase was primarily due to improved expectations about future unemployment and the general economic situation. The result was above its long-term average for the first time since July 2011. Confidence in the retail sector increased to -3.4 -5, due to improvements in all of its three components, namely the present and expected business situation and the assessment of stocks.
Meanwhile, confidence in the construction sector fell strongly to -30.1 from -26.4 as a result of a marked deterioration in ratings portfolio managers’ orders and deteriorating employment expectations. In January, the business climate indicator for the euro area almost unchanged at 0.19 compared to 0.20 in December. Economists had expected the result 0.34. Production expectations leaders, their assessment of past production, and general and export order book remained broadly unchanged. At the same time, the level of stocks of finished products was evaluated more negatively. The EUR / USD pair fell to $ 1.358 5 during the European session.
British Pound: The British pound fell against the dollar after the number of approved applications for mortgage loans in the UK in December rose less than forecast, but this figure was the highest in the last six years. These are the data published by the Bank of England on Thursday.
The number of permits for house purchase rose to 71,638 in December from a revised 70,820 in November. Economists had expected the figure to rise to 72,500 by November initial 70,758.
The latter figure is the highest since January 2008, when the number of mortgage approvals was 71,999.
Loans secured by housing increased by 1.7 billion pounds, while economists expected an increase of 1.2 billion pounds. Consumer loans increased by 0.6 billion pounds, while economists had expected growth to 0.7 billion pounds. The GBP / USD pair fell to $ 1.6440 during the European session.
American trading session:
U.S. Dollar: Dollar got support with regard to U.S. data , was showed that the gross domestic product , which is the broadest measure of goods and services produced in the economy , rose to a seasonally adjusted annual rate of 3.2% in the fourth quarter . Economists had expected in the fourth quarter activity will grow by 3.2%. Overall, in 2013 the economy grew by 1.9%. The last time the economy grew by more than 3 % per annum before the recession, when it reached 3.4% in 2005. In 2012, GDP grew by 2.8%. Recent GDP data show that the economy expanded by 3.7 % in the second half of 2013. This rate was much higher than the growth of 1.8% in the first half of this year. This is the highest growth rate in the second half of 2003, when the economy expanded by 5.8%.
Gold: The gold prices fell by about 1 %, which was associated with a significant appreciation of the U.S. currency after the U.S. Federal Reserve lowered the volume again its monetary stimulus. The cost of the February gold futures dropped to $ 1242.10 per ounce on the COMEX today.
Oil: The oil prices rose today, which was a month high as strong frosts in the United States contributed to the growth in demand for oil. The March futures price for U.S. light crude oil, WTI rose to $ 98.45 per barrel on the New York Mercantile Exchange.