#Daily_market_report Dollar Gains to Almost 9-Month High Versus Euro on Policy - Euro slightly weaker after ECB, Italy under spotlight - U.K. House Prices Rise to Record as Sales Surge The dollar strengthened to an almost nine-month high against the euro after European Central Bank President Mario Draghi signaled monetary policy will diverge from the U.S. for an extended period of time. The greenback rose against all but one of its 16 main peers as unemployment claims dropped, pushing the average over the past month to an eight-year low. Russia’s ruble declined to a three-month low as political tension in Ukraine deepened. The dollar advanced 0.1 percent to $1.3364 per euro at 5 p.m. New York time after touching $1.3333 yesterday, the strongest since Nov. 8. The euro fell 0.2 percent to 136.43 yen. Japan’s currency was little changed at 102.10 per dollar. The euro weakened as Draghi said headwinds facing the economic recovery in the 18-nation euro area are intensifying, after Italy slipped back into recession and the standoff between Russia and the U.S. and its allies escalated. Draghi has in the past said an external shock to the economy that endangers the inflation outlook could be a trigger for broad-based asset purchases, or quantitative easing. Mario Draghi says Italy can only blame itself for its third recession since 2008. The day after data showed the euro-area’s third-biggest economy unexpectedly contracted last quarter, the European Central Bank president singled out his country’s lack of structural reform and the disincentive for investment it engenders. That followed an opening statement that lamented the region’s “uneven” recovery. The comments may increase pressure on Italian Prime Minister Matteo Renzi to turn around an economy with youth unemployment above 40 percent and a recession that threatens the 18-nation currency bloc’s nascent revival. The ECB president’s comments on his homeland are blunter than normal, adding to the contrast with countries such as Spain that have engaged in more structural adjustments. U.K. home prices rose to a record last month as sales reached the highest in seven years, according to Acadata. Values rose 0.6 percent from June and were up 9.9 percent compared with a year earlier, pushing the average price to 270,636 pounds ($456,000), it said in statement today. About 90,000 properties were sold, marking a 21 percent surge over the past year. While the report adds to evidence of a booming property market, Acadata said the national picture is being skewed by London and the south east. Other reports have indicated the market is cooling after stricter lending rules were introduced this year, and Bank of England Deputy Governor Ben Broadbent said last month that the “edge is coming off” U.K. housing. Have a good day! Infinity International, Ltd
Posted on: Fri, 08 Aug 2014 07:53:01 +0000
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