The British pound, do not abandon the ranks of losers for many weeks, last night suddenly plucked up courage and flew up. On the technical side movement helped triggered stop-loss, but with a fundamental – a more confident tone of a member of the Bank of England Fischer in an interview with “Financial Times” and talk of mergers and acquisitions involving British companies. Sharp depreciation of the euro / pound gave further impetus to the movement, and the pound managed to win back some lost over the last three weeks of positions.
With regard to the dynamics of the dollar, then that session was ambiguous, since the results of two studies of business activity in the U.S. in October, were contradictory. First published index of manufacturing activity Empire State, which has grown to 34,6 (17,3 forecast; the previous value of 18.9), and this result provoked a decrease in growth rate bonds and dollar / yen above the 90.40 resistance level. The euro / dollar initially weakened slightly under the influence of words ECB head Trichet that euro has not been called upon to become the world’s reserve currency. However, at the least depreciation in the market went back managers (quite funny), and their purchase especially after a positive U.S. statistics have helped the euro / dollar back to the region above 1.49. Later became known results Philadelphia Fed index, which turned out to be worse than expected (11 against the projection 12 and the previous value of 14.1), and thrown off a pair of previously reached heights. With regard to other data, the CPI index did not bring surprises, and the level of weekly applications for unemployment benefits fell to its lowest in the last 40 weeks the level of 514 thousand (as against the forecast 520 thousand), and the level of existing applications the first time since the end of March dropped below the 6 million
The Asian session was poor at the statistics, so the motion was determined news and trade flows. Pound again captured the attention of players, demonstrating the next rally to a mark of 1.64, while the euro / pound weakened to 0.91, and the dollar / yen – up to 149. The reason for this movement has become bullish recommendation by the pound from one of the leading investment houses.
Market Australian dollar had nearly had a stroke from the so-called “creative journalism”, when in the publication “Australian” published an article that the chairman of the RBA Stevens said the Australian dollar to U.S. dollar may reach 1.10. In fact, the question whether the RBA measures not to allow speculators to bring the Australian dollar to 1.10 against the U.S. dollar, Stevens replied that the dynamics of the foreign exchange market is determined not only by the actions of speculators, but most of all basic indicators of economic dynamics growth and dynamics of trade. Of course, the Australian tried to break up the path of taking a new 14-month maximum, but later adjusted downward with the other currencies.
Today will be pleased by some interesting reports, especially reports on trade in Europe. In the North America region will account for production, capacity utilization study of consumer confidence from the University of Michigan, and Canada will publish the inflation data.
Successful to the weekend.