MasterForex Broker
MasterForex.org Representative
- Messages
- 265
Overview of the main economical events of the current day - 25/02/2014
Commodity Currencies Were Leaders on Monday
On Monday February, 24 the US dollar was traded slightly downwards Vs. most major currencies amid weak statistic data in the USA. The pound sterling strengthened its positions Vs. the US dollar amid growth of Sentiment in the UK Services sector. Commodity currencies increased amid staple prices growth.
The US dollar dropped VS. the pound and major commodity currencies, and had almost no changes Vs. the euro and the yen – having lost about 0.1% to the dollar index. One more series of weak data was released in the USA, though it was not so important. Markit US Flash Services PMI dropped in February to 52.7 p. (4-month low) against 56.7 p. in January, whereas growth was predicted.
Dallas Fed Manufacturing Activity dropped in February to 9-month low at the level of 0.3 p. against 3.8p. in January, having considerably exceeded the expectations of decrease to 3 p. Chicago Fed National Activity Index decreased in January to 6-month low at the level of -0.39, comparing with -0.03 in December (revised from +0.16) – decrease to -0.20 was predicted.
The euro increased to year highs after the release of IFO Business Survey in Germany, which are still at its highs since the middle of 2011, but then it decreased after the release of Inflation data. German Business Climate increased in February to 111.3 p. from 110.6 p. in January, whereas no changes were predicted. Assessment of Business Situation considerably exceeded the expectations, whereas Business Expectations decreased.
Though annual Eurozone Inflation Rate in January composed 0.8% having no changes in comparison with December, and having exceeded preliminary estimations at the level of +0.7% - at monthly rate Inflation dropped in January by 1.1% m/m, which appeared to be the highest decrease rate since 2001, when its current practice account began.
The speech of ECB’s Mario Draghi negatively influenced the euro – after G20 Draghi announced that he is ready to act, if the price forecast will become worse, though he doesn’t notice signs of the Eurozone deflation. ECB will have full set of information necessary for decision making – till the meeting of March, 6 – he added. ECB’s Visco also announced the possibility of interfering negative deposit stake will be discussed at the March meeting of the ECB.
The pound sterling strengthened its positions on Monday amid the growth sentiment in the UK Services Sector. The last CBI survey demonstrated that the climate among the UK companies improved to very high level over the recent 3 months. The comments of BOE’s Marc Carney supported the pound sterling as well – he noted that the Central Bank will support the UK economy recovery, which is close to the moment of interest rate increase.
Commodity currencies increased amid risk appetite increase and staple prices growth. The biggest increase Vs. the Us dollar was demonstrated by the Australian dollar. S&P 500 on Monday reached intraday historical high. Oil refreshed 4-month high amid demand increase in the USA, which is connected with weather conditions, and Supplies risks. Gold prices on Monday considerably increased, having reached the level of the end of October 2013.
By MasterForex Company
Commodity Currencies Were Leaders on Monday
On Monday February, 24 the US dollar was traded slightly downwards Vs. most major currencies amid weak statistic data in the USA. The pound sterling strengthened its positions Vs. the US dollar amid growth of Sentiment in the UK Services sector. Commodity currencies increased amid staple prices growth.
The US dollar dropped VS. the pound and major commodity currencies, and had almost no changes Vs. the euro and the yen – having lost about 0.1% to the dollar index. One more series of weak data was released in the USA, though it was not so important. Markit US Flash Services PMI dropped in February to 52.7 p. (4-month low) against 56.7 p. in January, whereas growth was predicted.
Dallas Fed Manufacturing Activity dropped in February to 9-month low at the level of 0.3 p. against 3.8p. in January, having considerably exceeded the expectations of decrease to 3 p. Chicago Fed National Activity Index decreased in January to 6-month low at the level of -0.39, comparing with -0.03 in December (revised from +0.16) – decrease to -0.20 was predicted.
The euro increased to year highs after the release of IFO Business Survey in Germany, which are still at its highs since the middle of 2011, but then it decreased after the release of Inflation data. German Business Climate increased in February to 111.3 p. from 110.6 p. in January, whereas no changes were predicted. Assessment of Business Situation considerably exceeded the expectations, whereas Business Expectations decreased.
Though annual Eurozone Inflation Rate in January composed 0.8% having no changes in comparison with December, and having exceeded preliminary estimations at the level of +0.7% - at monthly rate Inflation dropped in January by 1.1% m/m, which appeared to be the highest decrease rate since 2001, when its current practice account began.
The speech of ECB’s Mario Draghi negatively influenced the euro – after G20 Draghi announced that he is ready to act, if the price forecast will become worse, though he doesn’t notice signs of the Eurozone deflation. ECB will have full set of information necessary for decision making – till the meeting of March, 6 – he added. ECB’s Visco also announced the possibility of interfering negative deposit stake will be discussed at the March meeting of the ECB.
The pound sterling strengthened its positions on Monday amid the growth sentiment in the UK Services Sector. The last CBI survey demonstrated that the climate among the UK companies improved to very high level over the recent 3 months. The comments of BOE’s Marc Carney supported the pound sterling as well – he noted that the Central Bank will support the UK economy recovery, which is close to the moment of interest rate increase.
Commodity currencies increased amid risk appetite increase and staple prices growth. The biggest increase Vs. the Us dollar was demonstrated by the Australian dollar. S&P 500 on Monday reached intraday historical high. Oil refreshed 4-month high amid demand increase in the USA, which is connected with weather conditions, and Supplies risks. Gold prices on Monday considerably increased, having reached the level of the end of October 2013.
By MasterForex Company