Market news
12.09.2013, 18:20

American focus : the U.S. dollar has fallen markedly against the euro

The dollar fell sharply against the euro , losing the all previously earned a position as too optimistic data on treatment for unemployment benefits , as it turned out , had been distorted because of invalid parameters submitted by the various states.

It is learned that the primary applications for unemployment benefits in the U.S. unexpectedly fell in the week ended Sept. 7. Moreover, the number of applications fell to the lowest level in more than seven years. The Labor Department said that initial applications for unemployment benefits fell to 292,000 , which is 31,000 less than the previous week's 323,000 , which has not been revised . The decrease came as a surprise to economists , who had expected that the primary applications will grow to 332,000 .

With the unexpected decrease the number of initial claims for unemployment benefits fell to the lowest level since reaching 291,000 in the week ending April 1, 2006 .

However , the Labor Department noted that the marked decrease in unemployment claims may be due to the fact that the two states were not informed of all applications for software updates .

Secondary applications for unemployment benefits in the U.S. for the week 25-31 August fell by 73,000 to 2.871 million

Analysts believe that the major currencies will be close to the current level until the Fed meeting next Tuesday and Wednesday. Before that , the market will closely monitor data on retail sales and inflation on Friday .

Note also that without distorted data in the U.S., news that could explain the strong growth of the pair does not go . From the point of view of reports from the euro zone , they were more in favor of the euro's decline , as industrial production in the euro zone fell in July by 1.5 %, although the expected decline of only 0.1 %.

Pound back to the highs of the day against the dollar, after falling output data on the number of applications for unemployment benefits in the United States . Note that this dynamic has also been linked with the comments of the Bank of England. Carney statements were more aggressive than usual. The head of the Bank of England said that "the monetary authorities set the medium-term inflation target of 2.5 % instead of 2% due to the fact that 35 % of the unemployed are long-term unemployed ." "In order to increase transparency new MPC members must report whether they are guided by the current " politics of transparency. " Moreover, Carney said in Parliament that "the effectiveness of the policy of the Central Bank has increased, which can be called mitigation ." Fisher and Miles also noted that "the achievement of 2.5 % level of inflation will force the Bank to reconsider the policy," and "the reaction of markets to improve the GDP may be temporary ."

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