Currency News
&
Forecasts.
This Friday, November
29, 2013, the euro outperforms the dollar and seems to start in a strong
position December.
EURO
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.
POUND
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.
YEN
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.
DOLLAR
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.
