#Daily_market_report Dollar Advances as European Data Highlights Risks of Slowdown - German growth forecast cut - UK inflation slowed, Pound weaker The dollar rose the most against the euro in more than a week as signs of growth faltering in Europe contrast with an improving U.S. economy. The 18-nation shared currency dropped after reports showed industrial production in the region slumped and Germany’s government cut the economic outlook for this year and the next. The pound fell against most of its major peers as a report showed U.K. inflation declined to a five-year low. The yen rose against most major peers on haven demand, while the Canadian dollar reached the lowest since July 2009 as crude oil fell. The dollar strengthened 0.7 percent to $1.2658 per euro at 5 p.m. New York time and rose as much as 0.9 percent, the biggest intraday gain since Oct. 3 and recovered most of yesterday’s 1 percent decline. The greenback climbed 0.2 percent to 107.05 yen. The yen strengthened 0.5 percent to 135.51 per euro. The dollar pared a decline from yesterday triggered by Federal Reserve comments that slower global growth may delay U.S. interest-rate increases. The U.S. economy will expand 2.2 percent this year and 3 percent in 2015, according to Bloomberg News surveys. The euro area will grow 0.8 percent and 1.3 percent, while Japan’s will expand 1 percent in 2014 and 1.2 percent the following year, the surveys predict. Germany’s Economy Ministry yesterday cut its 2014 forecast to 1.2 percent from 1.8 percent, and reduced its estimate for next year to 1.3 percent from 2 percent. The ZEW Center for European Economic Research said its index of investor and analyst expectations slid for a 10th month. ZEW President Clemens Fuest said he doesn’t rule out a technical recession. Draghi will speak in Frankfurt today after saying Oct. 11 that the central bank will use further unconventional monetary policy instruments if needed to support a recovery. It has implemented a negative deposit rate, offered cheap loans to banks and unveiled a plan to buy asset-backed securities. The euro has dropped 1 percent in the past three months against a basket of nine developed-market currencies tracked by Bloomberg Correlation Weighted Indexes. The dollar is up 7.1 percent while the yen has gained 0.9 percent. The pound fell the most in a month yesterday as a report showed U.K. inflation slowed, damping expectations the Bank of England will increase interest rates. The annual pace of consumer-price growth dropped to 1.2 percent in September, the Office for National Statistics said. Sterling was little changed at $1.5902 following a 1.1 percent slide yesterday, the steepest since Sept. 8. It touched $1.5877 today, the least since Nov. 12. Have a good day! Infinity International, Ltd
Posted on: Wed, 15 Oct 2014 12:17:50 +0000
Trending Topics
Recently Viewed Topics
© 2015