Draghi signals Hold Euro Rally.
President's press conference the European Central Bank, Mario Draghi, on
Thursday the signaling no rate cut plans this year to support
the Euro rally, which raced to its highest level since April 2012 versus
the U.S. dollar on Friday. The euro also managed to reach the
strongest level since May 2011 against the yen, which was hit by a
Japanese prime minister Shinzo Abe agreement on a stimulus package
worth $ 117 billion.
While U.S. data released on Friday only a limited impact, and does not preclude risk appetite. The U.S. trade deficit widened unexpectedly in November, which adds a drag on economic growth. But the widening deficit was more likely caused by a surge in imports of consumer goods is actually a positive sign for consumer spending.
Hurting Output Data UK Sterling
Pound weakened against the greenback turned around after a poor output data added to concerns the UK economy will shrink in the 4th quarter. In addition to keeping the expectations of a contraction in the UK economy, the latest industry data also support the speculation that the Bank of England will shed further monetary stimulus. Going forward, the focus of investors will be focused on the UK CPI data on Tuesday next.
"The data today (Friday) has been the main reason for the weakening of Sterling," said Daragh Maher, currency analyst at HSBC. He also added that Sterling is still potentially fall even further to the level of $ 1.60, and then target the target at its 200-day MA at around $ 1.59.
Oil Slips On Global Demand Concerns
Oil ends lower on Friday, cutting back strengthening seen in the previous session as traders considered signs of demand from China. Traders are worried the "Saudi Arabia's low production reports that may tell you what Saudis know that demand will be worse than the perception of consensus," said Matthew Parry, an oil analyst at the International Energy Agency. There is also concern that "China's current inflation rate will limit the scope to get more support from the government," which is probably what prompted the strong pace of recent years of China's oil demand growth, he added.
Aussie worried about China Inflation Rate
The Australian dollar was thrown from the highest level in nearly 4-months as technical indicators indicate if the price increases might be too soon. The Aussie was also pressured by Chinese inflation data that accelerates faster than expected, fueling concern that policy makers will act to balance price increases and growth. Report of the National Bureau of Statistics showed China's consumer price index grew 2.5% last month from a year earlier, after posting a 2% increase in November. This figure is higher than the estimated 2.3% of the economists.
Kraft With the rise of Chinese Inflation
Gold futures ended lower on Friday, but scored weekly gain, as investors consider the impact of the increase in the larger-than-expected consumer prices in China, which is the second largest buyer in the world for the precious metal. China data raise concerns over monetary easing may be foiled by the country's central bank, but gold will probably find some support from the fear of inflation because it is seen as an asset hedge against consumer prices continue to rise, according to some analysts. "The overall trend remains high until next week," said Jeffrey Wright, an analyst at Global Hunter Securities. But "volatility remains high for gold and silver for the daily movement. I would anticipate this level of movement by continuing to play in the short term. "
While U.S. data released on Friday only a limited impact, and does not preclude risk appetite. The U.S. trade deficit widened unexpectedly in November, which adds a drag on economic growth. But the widening deficit was more likely caused by a surge in imports of consumer goods is actually a positive sign for consumer spending.
Hurting Output Data UK Sterling
Pound weakened against the greenback turned around after a poor output data added to concerns the UK economy will shrink in the 4th quarter. In addition to keeping the expectations of a contraction in the UK economy, the latest industry data also support the speculation that the Bank of England will shed further monetary stimulus. Going forward, the focus of investors will be focused on the UK CPI data on Tuesday next.
"The data today (Friday) has been the main reason for the weakening of Sterling," said Daragh Maher, currency analyst at HSBC. He also added that Sterling is still potentially fall even further to the level of $ 1.60, and then target the target at its 200-day MA at around $ 1.59.
Oil Slips On Global Demand Concerns
Oil ends lower on Friday, cutting back strengthening seen in the previous session as traders considered signs of demand from China. Traders are worried the "Saudi Arabia's low production reports that may tell you what Saudis know that demand will be worse than the perception of consensus," said Matthew Parry, an oil analyst at the International Energy Agency. There is also concern that "China's current inflation rate will limit the scope to get more support from the government," which is probably what prompted the strong pace of recent years of China's oil demand growth, he added.
Aussie worried about China Inflation Rate
The Australian dollar was thrown from the highest level in nearly 4-months as technical indicators indicate if the price increases might be too soon. The Aussie was also pressured by Chinese inflation data that accelerates faster than expected, fueling concern that policy makers will act to balance price increases and growth. Report of the National Bureau of Statistics showed China's consumer price index grew 2.5% last month from a year earlier, after posting a 2% increase in November. This figure is higher than the estimated 2.3% of the economists.
Kraft With the rise of Chinese Inflation
Gold futures ended lower on Friday, but scored weekly gain, as investors consider the impact of the increase in the larger-than-expected consumer prices in China, which is the second largest buyer in the world for the precious metal. China data raise concerns over monetary easing may be foiled by the country's central bank, but gold will probably find some support from the fear of inflation because it is seen as an asset hedge against consumer prices continue to rise, according to some analysts. "The overall trend remains high until next week," said Jeffrey Wright, an analyst at Global Hunter Securities. But "volatility remains high for gold and silver for the daily movement. I would anticipate this level of movement by continuing to play in the short term. "
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