Saturday, January 19, 2013

Euro worry about Global Growth

Euro worry about Global Growth. Euro knocked off 11-month highs versus the U.S. dollar after data showed Italian industrial orders declined and rising bad loans in Spain, which supports the expectation that the economy will be difficult to expand the area in 2013. Concerns about global growth also helped weigh on the euro after China, the second biggest economy in the world, showed moderate economic growth in 2012.

Yen 'Nervous' Ahead of BoJ Meeting

The yen continues to trade around its weakest level versus the 31-month U.S. dollar as investors try to anticipate the aggressive steps that might be taken the Bank of Japan earlier this week. Analysts believe that if the depreciation of the yen would go back to continue if the BoJ's decision to prevent deflation could exceed market expectations. A source close to the BoJ said that if the central bank is considering asset purchases to boost inflation close to 2%. "Many have tried to anticipate the outcome of the BoJ later. BoJ decision to launch unrestricted asset purchases will be catapulted dollar / yen and euro / yen," said Peter Kinsella, currency analyst at Commerzbank.

Poor Retail Sales, Sterling slumped

Pound slumped to the lowest level against the greenback 8-week retail turnover after data weaker than expected added to worries about the British economy being depressed. Retail sales in December fell 0.1% in December, which dispelled predictions of a 0.2% rise economists. Sterling sentiment was also hit by uncertainty over the relations between the UK and the European Union, which is Britain's biggest trading partner. Lee Hardman, currency analyst at Bank of Tokyo with Mitsubishi. "Grim to the future of British membership in the European Union also helped erode short-term sentiment Sterling. Bias so that the British currency is still weak."

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