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Forex

The U.S. dollar fell against its competitors, which was associated with the release of weak U.S

February 28, 2014, Friday, 17:06 GMT | 12:06 EST | 21:36 IST | 00:06 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

Euro: The euro exchange rate decreased moderately against the dollar, despite exceeding the forecast of labor market data in Germany. Euro has not responded to report that the German unemployment fell more than expected, but the unemployment rate remained stable in February as was presented by the Federal Agency of Labour. Number of people out of work fell by 14,000 to 2.914 million in February. Unemployment is projected to drop by was 10,000. At the same time, the unemployment rate to a seasonally adjusted remained stable at 6.8 percent in February. In turn, the French consumer confidence index fell slightly in February, offset by the gain recorded in the previous month, as concerns over rising unemployment continue to plague the country, reducing the economic expectations. The consumer confidence index fell to 85 points on January 86, showed a survey conducted by the statistical office INSEE. Economists had expected the index to remain unchanged at 86. Views of households on the general economic situation in the next 12 months deteriorated sharply in February. Corresponding index decreased by 5 points. Score consumers their financial situation over the next 12 months a little weakened. The EUR / USD pair fell to $ 1.3645 during the European session.

Swiss franc: Pressure on the Swiss franc had data on slowing economic growth. The economic growth in Switzerland slowed more than expected in the fourth quarter as exports declined amid weak global demand for chemical and pharmaceutical products. This was announced on Thursday, the State Secretariat for Economic Affairs (SECO). Real GDP growth slowed more than expected to 0.2 percent from 0.5 percent in the third quarter. Projected growth should have been reduced to 0.4 percent. Economic growth has slowed down the second consecutive quarter. First estimates for the full year, based on quarterly data showed that economic growth accelerated in 2013 against the backdrop of private consumption and investment. The GDP grew by 2 percent in 2013 after expanding by 1 percent in 2012. SECO expects that growth will accelerate to 2.3 percent in 2014.


American trading session:

U.S. Dollar: The U.S. dollar fell against its competitors, which was associated with the release of weak U.S. data and Fed chief comments. It is learned that orders for durable goods fell to a seasonally adjusted 1% from December. This was the second consecutive decline after orders fell 4.2 % in December. However, with except for the volatile transportation category, the orders rose by 1.1 % last month, showing the strongest growth since May. Economists forecasted that overall orders for durable goods fell 0.7% in January.

Meanwhile, another report showed that the number of initial claims for unemployment benefits rose by 14,000 and amounted to a seasonally adjusted 348,000 in the week ended February 22. The figure for the previous week was revised down to 334,000 from 336,000. Economists had predicted that jobless drop to 333,000. The four-week moving average of claims remained unchanged last week at 338,250. Analyst Ministry of Labour said there were no special factors that could affect the data last week.

As for the speech of the Chairman of the Federal Reserve Janet Yellen , she noted : the Fed will continue to reduce the amount of quantitative easing (QE), despite the fact that the recovery of the U.S. labor market is still far from complete. Yellen also reiterated statements made on February 11 at the House of Representatives. Initially, her performance in the Senate Banking Committee to be held on February 13, but was postponed due to inclement weather.

Moreover, Yellen confirmed that the base rate is likely to be maintained at the current level (0-0.25 %) for a long time after the U.S. unemployment rate falls below 6.5%, while maintaining the inflation forecast is not above the level of 2.5 %. She said: decisions regarding reductions in the rate of quantitative easing are not predefined and FOMC will be taken depending on the evaluation of the situation on the labor market and inflation.

Canadian dollar: The Canadian dollar fell slightly against the U.S. dollar, which was associated with the release of data on the balance of payments. As it became known, the current account deficit widened in Canada in the fourth quarter of 2013 and the fourth largest in history - mainly due to a higher deficit in trade in goods. The current account deficit rose to a seasonally adjusted 16.01 billion Canadian dollars ($ 14.39 billion), compared with a revised deficit in the third quarter at 14.80 billion Canadian dollars. Deficit in the previous quarter originally estimated at 15.47 billion Canadian dollars. Economists had expected a deficit of $ 16.5 billion Canadian dollars.

Gold: Gold prices rose today against the background of dollar fluctuations, but remained well below the four-month high, which was reached yesterday. The cost of the April gold futures rose to $ 1334.00 per ounce on the COMEX today.

Oil: Oil prices fell slightly today, due to the instability in Ukraine. April futures price for U.S. light crude oil WTI fell to $ 102.20 a barrel on the New York Mercantile Exchange.