Market news
21.11.2013, 19:20

American focus : the dollar fell against the euro

The euro rose against the dollar against the publication of indicators of PMI for the euro area . Note that in Germany, business results exceeded forecasts , and in France and the eurozone disappointed investors . According to preliminary estimates Markit, a composite Purchasing Managers Index (PMI) euro zone in November fell to 51.5 from 51.9 in October. Although the indicator is above the threshold level of 50 indicates an increase in activity compared with the previous month , the rate of growth of activity were the weakest in three months.

In Germany, the composite index of manufacturing rose to a ten-month high, while it is up to the level of 54.3 in November from 53.2 in October. The manufacturing purchasing managers' index rose to 29 -month high of 52.5 in November from 51.7 in October. Economists had forecast a rise to 52.3 .

But the main support for the euro had comments of the ECB . European Central Bank President Mario Draghi , who spoke today in Germany, declined to comment on the probability of introduction of negative interest rates on deposits .

" This idea was discussed at the last meeting on monetary policy , but so far no news in this regard is not ," said Draghi . During a press conference earlier , he reported that the bank " technically ready " to lower interest rates to negative values ​​, if required by economic conditions .

In addition, the head of the ECB noted that the recovery in the euro area continues but remains " weak, unstable and uncertain ," and until is achieved price stability , the stability of it , too, should not wait. "The risks to the economic outlook continues to be top-down ", - he added. Draghi also said that only the expense of monetary policy can not stabilize the situation in the eurozone and called on EU governments to make some concessions in the reform program .

The British pound rose against the dollar, which has been associated with the publication of data by the Confederation of British Industry , under which it became known that the growth of British industrial orders and production in the last three months has reached its highest level since 1995.

According to the survey of industrial trends , 36 percent of companies said that their total order book was above normal, and 25 percent said it was lower , which makes the balance of 11 per cent. It was the highest level since March 1995 .

Similarly , the balance of industrial production was 24 per cent in the three months to November and grew at the fastest pace since January 1995 . Companies expect that production growth will continue at the same pace over the next three months. About 44 percent expect an increase in output and 20 percent forecast a decline , resulting in a balance amounted to 24 percent.

Stephen Gifford , director of economics CBI, said: " This new evidence shows encouraging signs of widening and deepening of recovery in the manufacturing sector. " " Manufacturers finally felt the benefit from the growth of confidence and spending in the UK and around the world ," added Gifford .

The Canadian dollar fell significantly against the U.S. dollar, which was in response to the output of positive U.S. data . One report showed that the number of Americans who first applied for unemployment benefits fell for the fifth time in six weeks , becoming the latest sign of improvement in the labor market. The number of initial claims for unemployment benefits , a measure of layoffs, fell by 21,000 to a seasonally adjusted 323,000 in the week ended November 16, the Labor Department said . Economists had forecast 333,000 initial claims . The value of the previous week was revised up to 344,000 from 339,000 , which was originally reported. Four-week moving average of claims , which smooths out the volatility of weekly data, fell to 338,500 .

The positive was also a report on manufacturing activity . Preliminary results from Markit survey showed that in the U.S. November purchasing managers index rose to 54.3 , compared with the consensus forecast of 52.6 . In October, the index was at 51.8 .

The latter value is the highest since March. Component production rose to a maximum of nine months. But at the same time, the data showed that hiring has slowed. The three-month average , which gives an idea of ​​the main trend , was 52.9 , being " in accordance with the current moderate improvement of the working environment ."

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