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Swiss Franc firmed the increased risk aversion amid worries about China and the situation between Russia and Ukraine

March 13, 2014, Thursday, 09:15 GMT | 05:15 EST | 13:45 IST | 16:15 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

Euro: The euro exchange rate rose sharply against the U.S. dollar, despite weak data on industrial production in the euro area. Official data showed Eurostat, in the euro zone industrial production fell unexpectedly in January, largely due to reduced production of energy.Industrial output fell 0.2 % on a monthly basis in January, showing the second consecutive fall. Economists had expected growth of production by 0.6 % after falling by a revised 0.4 % in December.

Production of energy decreased by 2.5 %, and the production of durable consumer goods fell by 0.6 %. Intermediate goods decreased by 0.1 %. Partially offset this decline is that the release of capital goods rose by 0.9 %, while production of consumer non-durable goods increased by 0.4 %.On an annual basis, industrial production growth accelerated to 2.1 % from 1.2 % in December. Economists forecasted that output will grow by 1.9 %.

In light of these release analysts ING Bnak NV commented: “The main reason for poor outcome again was to reduce energy production by 2.5%, but intermediate goods and consumer durables also pointed to the decline in production. While the benchmark did not meet expectations, weak energy component probably overshadowed a slight improvement in the overall indicator. However, to strengthen the eurozone recovery process still requires export growth. “ The EUR / USD pair rose to $ 1.3908 during the European session.

Japanese Yen: The yen rose against most currencies on concerns about the state of China's economy. This increases the demand for safe-haven assets, which, in particular, is the yen. In February, China's exports fell by the largest value since the beginning of the financial crisis. Index decreased yearly by 18.1 %, while the experts had expected growth of 7.5%. However, the real picture is quite difficult to evaluate because of the rather long New Year celebrations on the lunar calendar. Holidays in China traditionally distort statistics. Meanwhile, imports grew by 10.1%, resulting in a trade deficit reached highs for 2 years at $ 23 billion. The USD / JPY pair fell to Y102.65 during the European session.

American trading session:

Swiss Franc: Swiss Franc continued to strengthen against the dollar, breaking with a two-day consolidation and peaking in the last 28 months. Franc firmed the increased risk aversion amid worries about China and the situation between Russia and Ukraine.

Market participants are waiting for tomorrow's data for China. Economists predict that the Chinese industrial production has increased markedly during the first two months of this year, but the rate of this increase will be less than was recorded in December. It is estimated that industrial production increased by 9.5 % ( yearly ) in January and February, compared with a gain of 9.7 % in December. Experts also expect that retail sales rose by 13.5 % per annum for the first two months of this year - it's a little less than 13.6 per cent growth in December. Growth of investment in fixed assets, probably slowed to 19.5 per cent per annum, compared with an increase of 19.6 % in January.

Gold: Gold prices rose significantly today, while reaching a six-month high, as investors expect that fears of corporate defaults in China and geopolitical confrontation between Russia, Ukraine and the West have a negative impact on the stock market, and increase the attractiveness of the precious metal as a hedge against the risk of. The cost of the April gold futures rose to $ 1365.90 per ounce on the COMEX today.

Oil: The WTI Oil prices fell markedly today, reaching at this month low which was associated with the publication of a report on oil reserves in the United States. April futures price for U.S. light crude oil  fell to $ 98.34 a barrel on the NYMEX.