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Forex

The Euro rose substantially on positive data of the business activity in the euro area private sector

January 24, 2014, Friday, 09:35 GMT | 04:35 EST | 14:05 IST | 16:35 SGT
Contributed by Forex-Metal

Euro: The euro exchange rate rose substantially against the U.S. dollar on data for the business activity in the euro area private sector, which increased significantly in January, having shown the highest growth in the last 31 months. This was stated in the study results, which were issued by Markit Economics. The data showed that the composite PMI, which assesses the effectiveness of the manufacturing sector and the services sector rose to 53.2 in January from 52.1 in December, reaching its highest level since June 2011. Pleased also another report which showed that the current account surplus of the euro zone rose unexpectedly in November, registering with the second monthly increase in a row, which primarily was due to a significant increase in exports. According to the report, the current account surplus rose to a seasonally adjusted level of 23.5 billion euros in November, compared with 22.2 billion euros in October. The EUR / USD pair rose to $ 1.3647 during the European session.
 
British Pound: The pound continued its yesterday's gains against the U.S. dollar, while setting a new yearly high. Increased risk appetite supporting sterling today. Positive so far for a pound a week contributed to the continuation of its strengthening levels above $ 1.6600, where the couple was not since August 2011. A recent report to the Bank of England combined with data on employment contributed to the development of the current bullish bias. The GBP / USD pair rose to $ 1.6615 during the European session.
 
Swiss Frank: The Swiss franc has risen sharply against the U.S. dollar against the backdrop of the Swiss National Bank raised its capital buffer requirements for banks , they should have to mortgage lending. Note that the SNB is supported by the Government now requires mortgage lenders have to have a 2% higher weighted assets in relation to mortgage risk to maintain their lending , against 1% , introduced in February 2013 . New rules on capital reserves associated with a mortgage come into force on June 30 this year.
 
 
American trading session:
 
U.S. Dollar: The U.S. dollar weakened across the board after the published statistics. Manufacturing activity in the U.S. this month weakened. This wss evidenced by the preliminary report of Markit, presented on Thursday. Nevertheless, one of the factors weakening activity can be extremely cold weather. Preliminary Purchasing Managers Index (PMI) for the manufacturing the United States in January fell to 53.7 from December's final value of 55.0. In Markit reported that the January preliminary value that is based on approximately 85 % of the normal monthly number of responses, “signaled the slowest in three months improving the business environment." Another report showed that the index of economic activity for the region of Chicago gave markedly smaller increase in December, as the sub- indices related to employment and production figures have decreased compared to the previous month. With regard to labor market data, the number of applications for unemployment benefits rose slightly last week, although the overall level indicates a marked improvement in the labor market. According to the report, the seasonally adjusted number of initial claims for unemployment benefits rose for the week ending January 18, 1000, reaching a level with 326 thousand.
 
Gold: The gold prices rebounded from two-week low after reporting a slowdown in manufacturing activity in China and on the eve of the Fed meeting, at which the central bank may continue to reduce incentives. The cost of February gold futures rose to $ 1267.50 per ounce on the COMEX today.
 
Oil: The cost of March futures of WTI oil brand rose to $ 97.80, to three-week high after a government report showed that U.S. inventories of distillates fell as demand rose.