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The euro has risen sharply against the U.S. dollar due to the easing of tensions around Russia and Ukraine

March 5, 2014, Wednesday, 11:30 GMT | 06:30 EST | 17:00 IST | 19:30 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

Euro: The euro exchange rate has risen sharply against the U.S. dollar due to the easing of tensions around Russia and Ukraine. Recall that today Russian President Putin announced the completion of a series of military exercises in the western part of Russia, and ordered the troops to return to base.

The growth is also linked to the expectations of the ECB meeting on Thursday and the employment report in the U.S. on Friday. Little impact on the euro was data that showed prices of producers eurozone declined in January, more than expected, which was due to falling energy prices. According to the report, producer prices fell 0.3 % in January, while offsetting an increase of 0.2 %, which was recorded in December. Many experts expect that producer prices will remain unchanged. Excluding energy, producer prices rose 0.1 % after zero change in December. Energy prices fell by 1.4 % in January, compared with 0.5 per cent increase in the previous month. On an annual basis, the decline in producer prices accelerated in February, 1.4 per cent from 0.8 per cent in December. Last change coincided with the estimates of experts. The EUR / USD pair rose to $ 1.3775: during the European session.

British Pound: Pound rose slightly against the U.S. dollar, as a territorial dispute between Ukraine and Russia began to be resolved. Pressure on the currency was presented data that showed British construction sector continued its expansion in the month of February, but sharply slowed its pace of growth compared to the month of January, as adverse weather conditions violated activity. This was stated in the report, Markit Economics. According to the index of purchasing managers in the construction sector fell last month to a level of 62.6 points, compared with a 77 -month high in January at around 64.6 points. Many experts expected that this figure will decrease only to 63.6 points. I also add that the index remains above the level of 50.0 points, which separates growth from contraction since last May. Studies have also found that higher levels of production and new orders led to a further sharp rise in employment and procurement. The number of new jobs has reached three-month high in February. The total purchase price inflation accelerated to a five-month low in January, as the pressure on the "chain" of supplies contributed to the growth of the burden. As a result, the average price charged by subcontractors, increased at a record pace on record. The GBP / USD pair rose to $ 1.6718 during the European session, but then retreated slightly.

Japanese Yen: The yen weakened against most major currencies after the statements of the Bank of Japan Haruhiko Kuroda supported a pulse for the carry trade. According to Kuroda, low interest rates in Japan are encouraging investors to use the yen as the base currency for the carry trade. The USD / JPY pair rose to Y101.954 during the European session.

American trading session:

Australian dollar: The Australian dollar strengthened slightly updating lows after Australia's central bank left interest rates unchanged at a record low 2.5 %. In its statement accompanying RBA Governor Glenn Stevens noted that the recent decline in the Australian dollar will balance economic growth, but the rate remained in high by historical standards.

Gold: Gold prices fell almost completely disappeared yesterday's gains, as demand for safe assets today downgraded due to signs that Russia may be trying to avoid further military build-up in the Ukraine. The cost of the April gold futures dropped to $ 1330.20 per ounce on the COMEX today.

Oil: The cost of oil brand West Texas Intermediate fell from five-month high amid speculation about tensions between Ukraine and Russia, the largest exporter of energy resources. April futures price fell to $ 103.10 a barrel on the New York Mercantile Exchange.

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