The euro has appreciated strongly against the dollar, updating the maximum of 9 May, which was due to profit-taking after a six-day growth of the US currency. Little influenced by the statements of Bundesbank board member Dombreta. He noted that the loose monetary policy of the European Central Bank is justified by depressed prospects for economic growth in the euro zone. “Currently, expansionary monetary policy is justified subdued inflation outlook and fragile growth. Although, of course, there are side effects that increase with time, and may have a negative impact on banks’ profitability.” – Said a board member of the Bundesbank Andreas Dombret. His words were similar to the latest comments from the head of the Bundesbank, Weidmann, who also defended the ECB policy after criticism German Finance Minister Wolfgang Schaeuble.
Also today, the Organization for Economic Cooperation and Development reported that the economic downturn in emerging economies shows signs of easing, data showed that the leading economic indicator covering all OECD countries fell to 99.6 in March from 99.7 in February. China’s index remained at 98.3, while the index for the US fell to 98.8 from 98.9. The figure for the UK remained at around 99.1, while the indicator for Germany was 99.7, as in February. Indicator for the euro area fell to 100.4, the indicator for France stabilized at 100.9, while the index for Italy fell to 100.7 from 100.8.
The pound rose moderately against the US dollar, rebounding after falling in the first half of the session, which was caused by the publication of weak data on Britain. As it became known, the total volume of industrial production in the UK fell in March by 0.2% per annum, leveling the February increase of 0.1%. Output in the manufacturing sector decreased by 1.9%, accelerating compared with February, when production fell by 1.6%. However, the latest update in line with expectations. In monthly terms, the total volume of industrial production increased by 0.3% after falling 0.2% in February. Analysts had expected an increase of 0.5%. In manufacturing, output grew by 0.1% in the fall of 0.9% the previous month and the forecast of + 0.3%.
In the course of trading is also affected by the expectations of the meeting of the Central Bank of England, which is scheduled for tomorrow. Economists will be closely watching those to preserve the unity of opinion among the leadership of the Bank of England after increasing downside risks to GDP growth. Over the weekend edition of the Guardian reported that at least one member of the Committee of Central Bank may act for the interest rate cut to stimulate the economy.
The Canadian dollar rose strongly against the dollar, reaching a peak on 6 May. Support currency had a sharp rise in oil prices following the publication of statistics on US petroleum inventories. US Department of Energy reported that in the week of April 30 – May 6 crude oil inventories fell by 3.4 million barrels to 540 million barrels. Analysts on average had expected an increase of 0.5 mln. Barrels. Oil reserves in Cushing terminal rose by 1.5 million barrels to 67.8 million barrels. Gasoline inventories fell by 1.2 million barrels to 240.6 million barrels. Analysts had expected stocks will decline by only 0.6 million. Barrels. Meanwhile, distillate inventories decreased by 1.6 million barrels to 155.3 million barrels. Analysts expected distillate stocks to decrease by 0.8 million. Barrels. The utilization of refining capacity fell 0.6% to 89.1%. Analysts expected an increase of 0.5%. It was also reported that oil production in the US in the week from 30 April to 6 decreased to 8.802 million. Barrels per day versus 8.825 million barrels per day in the previous week.
The post American focus: the US dollar depreciated significantly against the euro and the Canadian dollar appeared first on forex-analytics.press.