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The Euro made the biggest one-day rise since January on results of the inflation report for the euro area

April 17, 2013, Wednesday, 15:53 GMT | 10:53 EST | 19:23 IST | 21:53 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

Euro: During the European session the euro rose against its rivals. The EUR / USD pair retreated from yesterday's lows and grew to $ 1.3145 area. The reason for that sharp growth was the result of the annual inflation report released today by the European Central Bank, which showed that at the end of last month the rate of inflation in the euro area declined below the target level. According to this report, the March’s figure was the lowest since August 2010. It recorded the annual rate of inflation at a level of 1.7 %, compared to 1.8 % in February, confirming an earlier estimate of analysts.

British Pound: The pound grew today after the report showed that consumer price index remained above the target level which was designated by the Bank of England. The inflation rate in the UK remained stable in March, but was still above the target level. According to the report released today by the Office for National Statistics, the annual rate of consumer price inflation in March remained at 2.8%, despite the expectations of economists of rising to 2.9%. The GBP / USD pair during the European session grew to the high of $1.5327.

Japanese Yen: Despite yesterday's strengthening against almost all its competitors amid the mitigation of monetary policy adopted by the Bank of Japan, the yen fell today resuming its previous trend. The USD / JPY pair rose to Y98 level during the European session. Also, the dynamics of the trade were affected by the official information published today, which showed that the international rating agency Moody's changed the rating outlook of China's government bonds to “stable” from ”positive”, confirming its rating at " Aa3 " stage.

American trading session:

U.S. Dollar: The dollar weakened today, the dollar index fell below 82 levels cutting off yesterday's results, because of the recovery in gold prices and U.S. equities which erased demand for safe assets.

Euro: The euro rose to a seven-week high against the U.S. dollar to the level of almost $1.32 after the stop orders on short positions on the euro were triggered and boosted the single European currency to its highest levels since the end of February 2013. The euro closed today almost making the biggest one-day rise since January 2013.

Gold: The price of gold went green for the first time in two days where the aggressive sales were involved and returned to positive territory. The cost of the asset is still far of covering up all of its lost positions. The U.S. spot gold grew today to $ 1401 area.

Oil: The price of oil has also bounced back after recent sell offs and the May futures for WTI rose to 88.73 dollars a barrel on the NYMEX. However, the pressure on oil trading dynamics existed due to some speculations that U.S. crude inventories would demonstrate growth in its upcoming report.