The U.S dollar got some support after the Fed's decision to lower the amount of QE
January 30, 2014, Thursday, 10:52 GMT | 06:52 EST | 16:22 IST | 18:52 SGT
Euro: The euro fell against the U.S. dollar, amid reducing lending to the private sector in the euro area. According to the European Central Bank lending to the private sector in the euro zone fell in December compared with the same period of the previous year as well significantly, as in the previous month. According to published data, in December, as well as in November, lending to the private sector decreased by 2.3%.
Last spring, the housekeeper eurozone emerged from a protracted recession, which was particularly severe in Southern Europe, where the cost of credit for small businesses is much higher than in other regions of the eurozone. Nevertheless, the economic recovery remains slow and insufficient to curb unemployment, which is held at record high levels. According to economists, the economic recovery may not be sustainable if the banks start to lend more actively firms and households.
The report also showed that the M3 broad money supply grew by only 1 % in December, after expanding by 1.5 % in November. Economists had expected the index to rise 1.7 %. During the period from October to December M3 money supply grew by 1.3 % compared with the same period last year. Such growth rates are far below the “reference value “of the ECB 4.5 %, which, according to the central bank, consistent with the mandate of price stability.
Earlier, the euro rose, supported by data on the index of consumer confidence in Germany. German consumer confidence index improved for the fifth month in a row in February amid recovery of the growth momentum in the country. These are the results of a survey conducted by a group GfK. Expected consumer confidence index rose to confidently 8.2 points from a revised 7.7 points in January. The latter figure is the highest level since August 2007. Economists had expected the index to rise only to 7.8.
Income expectations index rose to a 13- year high of 46.2 points in January from 39.5 in December. Measure of economic expectations jumped to 35.3 from 23.3. The result is the highest since July 2011. Readiness Index to purchase rose to 50 from 46.1, noting the highest level since the end of 2006. The EUR / USD pair rose to $ 1.3685, but then fell to $ 1.3619 during the European session.
British Pound: The British pound rose against the dollar earlier after the release of U.S. data on the growth in housing prices. In the UK house prices rose at the fastest pace in more than three and a half years in January, supported by strong growth in employment, record low mortgage interest rates and increasing confidence. Such a survey conducted nationwide housing society. The housing price index rose by 8.8 % per annum in January, marking the fastest increase since May 2010, when prices rose by 9.8 %. Prices were by about 4% below the peak in 2007. Economists had expected prices to rise in January by 8.1 % . In December, the index recorded an increase of 8.4%. Housing prices rose a seasonally adjusted 0.7 % compared to December, when they rose 1.4 %. Expectations were at a gain of 0.7 %. The average house price in the UK has now reached 176,491 pounds, which is more than 175,826 pounds, registered in December. GBP / USD: during the European session, the pair rose to $ 1.6608, but then fell to $ 1.6542
The Yen and the Swiss franc fell against major currencies after the Turkish central bank took steps to stop the further devaluation of the lira, which reduced demand for safe-haven currencies.
American trading session:
U.S. Dollar: The dollar got some support after the Fed's decision to lower the amount of QE. The Fed reduced the amount of asset purchases by $ 10 billion - to $ 65 billion and kept the interest rates, at 0.25 % with 0.25 % forecast.
Gold: The gold prices raised significantly today, the price of February gold futures on the COMEX today rose to $ 1264.90 per ounce.
Oil: The prices for WTI crude oil declined moderately, after a government report showed that U.S. crude inventories rose more than expected last week. The March WTI futures price fell to $ 97.10 a barrel on the New York Mercantile Exchange (NYMEX).