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The weak result of the Japanese GDP put Yen under pressure

February 18, 2014, Tuesday, 10:48 GMT | 05:48 EST | 15:18 IST | 17:48 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

British Pound: The British pound retreated from four-year highs against the dollar reached on housing data. Housing prices in Britain have risen markedly in February, registering with the largest increase in the last seven years. This was stated in the data, which were released on site estate Rightmove. According to the report, average house prices across England and Wales increased in February to ? 251,964, which was 6.9 % higher than the same period last year, as demand from potential buyers continued to strengthen. Add that last jump was the highest (in annual terms) since November 2007. In addition, it was reported that prices in London rose by 11.2 % per annum, in connection with which the average price was at around ? 541,313. In the north- east cost of housing has risen by only 0.1 %, against which the average price was ? 142,372. In Wales, house prices rose by 2.3 % year on year, reaching ? 165,055 on average.

After several years of uncertainty, more people are thinking about moving. Over the past four weeks, the number of new homes that were for sale on the website, averaged 27,768 units, an increase of 18 % compared with the same period last year. Growing supply increases demand from buyers, which indicates that the number of homes sold in 2014 may be more than last year, according to Rightmove. The GBP / USD pair fell to $ 1.6718 during the European session.

Japanese Yen: The Japanese Yen lost scored during the Asian session positions against the dollar after data on GDP and industrial production. According to the report submitted by the Cabinet Office in Tokyo, annualized gross domestic product grew by only 1 % compared to the previous quarter. Thus, the figure fell short of the most pessimistic estimates of economists in 1.1%, while the average forecast assumed a 2.8% increase. The economic slowdown in Japan emphasizes the risks to recovery, especially before the rise of the sales tax in April to 8% from 5%. “Inevitably, the fact that the economy has weakened in the period from April to June because of the negative reaction to the demand," - said Yoshimasa Maruyama, chief economist at the Institute for Economic Research Itochu. Despite the fact that capital spending rose by the maximum value for two years, and consumption growth rose, external demand is still negatively affected GDP data. In January-March GDP growth is likely to accelerate, but some economists careful because higher wages cannot support the costs after raising taxes. Relatively weak exports could also have a negative impact on growth.

The volume of industrial production in Japan grew weaker pace in December than previously assumed. This was stated in the final data, which were presented today by the Ministry of Economy, Trade and Industry. According to the report, industrial production grew by 7.1 % in December compared with the same month last year, which was slightly less than the increase of 7.3 %, which was reported on January 30. However, growth in December was significantly higher than in November - at the level of 4.8 %. Seasonally adjusted industrial production rose by 0.9 % compared with the previous month. Recall that in November industrial output fell by 0.1 %. Preliminary data reported growth in December by 1.1 %. The USD / JPY pair rose to Y101.99 during the European session.

American trading session:

Gold: The gold prices rose to a peak of 3.5 months on a weaker dollar and concerns over U.S. economic growth. The cost of the April gold futures on the COMEX today rose to $ 1329.90 per ounce for ounce.

Oil: The cost of oil brand West Texas Intermediate rose for the first time in three days, while signs of improvement of the U.S. economy and record levels of new loans in China reinforced the demand outlook in the world’s two biggest oil consumers. March futures price for WTI rose to $ 101.13 a barrel in electronic trading on the New York Mercantile Exchange.