Currency News & Forecasts.
This Friday, November 29, 2013, the euro outperforms the dollar and seems to start in a strong position December.
The single currency continued her meteoric rise since Wednesday pushed by good German economic indicators and supported by the positive unemployment rate (less 12.1 %) and inflation rate ( up 0.9 %) in the European bloc .
These indicators seem to have reassured investors who feared negative November results for weeks and therefore, a possible intervention by the European Central bank again lowering its key interest rate and making the euro less attractive.
The pound fell against the euro, but we expect a recovery in December.
Last Thursday, the England Central Bank (BoE) Governor, Marc Carney, has raised the possibility of removing the BoE stimulus (injecting money in British economy) because of the growing inflation. This decision has been appreciated by investors who pushed the pound to rise, but the British consumer’s confidence indicator, appeared late afternoon, changed everything. According to the report of the GFK, the morale of British consumers drops in November. Investors are still waiting for some clarification.
Today, the yen stagnate due to Government intervention but remains in a weak position against the euro and the dollar. Poor performance of the yen will continue in the coming weeks. The dollar broke through 102 yen yesterday, and forced the Japanese authorities to take further measures. The Japanese central bank will take down it interest rate to cheer inflation and depreciate its own currency. This possibility would make the yen less attractive.
November ended on Wednesday for the dollar because of Thanksgiving (holiday in the United States), traders will benefit from vacation until early December.
Yet the dollar gained strength on Wednesday due to positive economic indicator with a lower job seekers. And these holidays including the Black- Friday will be crucial for the greenback. Indeed, the results of U.S. consumption during this period we will indicate the economic situation in the United States.
Investors are eagerly awaiting the economic results of the period few days before the next U.S. central bank "Fed" meeting on 17-18 December. The Fed could decide to stop its monthly injections of $85 billion if economic indicators are good. The greenback could then benefit from it.
Posted by MBCFX