Market news
14.01.2014, 19:20

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

The euro exchange rate fell slightly against the dollar, losing previously won positions . Little impact on the bidding had U.S. data on retail sales and inventories , which confirmed the experts' predictions . Statements were important members of the Federal Open Market Plosser and Fisher . President of the Federal Reserve Bank of Philadelphia Charles Plosser said that the weak employment report for December will force the central bank to refrain from exercising its plans to curtail purchases of bonds . Plosser gave a reassuring speech on the prospects of the economy. According to him, there's no reason that the Fed could abandon the collapse of asset purchases .

During his speech, the representative of the Fed Fisher expressed commitment that the Fed started to cut bond purchases , but still said that the first cut should have been larger. Meanwhile , Fisher added that the Fed is facing enormous difficulties trying to manage liquidity .

Fisher also said that the market correction is not necessarily undermine the economic recovery . In his speech, he also said that he would not mind the correction in the stock market if the economic indicators are good .

Fisher also said that the Fed provided the markets too much liquidity , and liquidity the Fed clouded perception of investors. An important point of his speech were the words that the Fed is important to go ahead and complete the purchase of bonds

Pound rose against the U.S. dollar, after data indicated the slowdown in inflation in Britain. As it became known , inflation fell unexpectedly in December and reached the target level of 2 per cent of the Bank of England for the first time since 2009. Consumer prices rose by 2 percent year on year , after rising 2.1 percent in November. According to forecasts , inflation was to remain stable at 2.1 per cent . But on a monthly basis , consumer prices rose by 0.4 percent , which is faster than the growth of 0.1 percent posted in the previous month .

Excluding energy , food, alcoholic beverages and tobacco products , core inflation declined ">In a separate statement, the ONS said inflation producer prices accelerated to 1 percent in December from 0.8 percent a month earlier. Compared to November , prices for products remained unchanged .

Purchase prices , at the same time , decreased the second consecutive month in December. Prices fell by 1.2 per cent per annum, after easing to 1 percent in November . On a monthly basis the purchase prices increased by 0.1 percent.

The yen fell against the U.S. dollar , which primarily was due to the publication of a report on the current account deficit in Japan . In November, this figure increased to a record , as imports grew . This again highlights the problems for Prime Minister Shinzo Abe, who is trying to achieve sustainable economic growth. Index reached 592.8 billion yen ( $ 5.7 billion ) , the Finance Ministry said today in Tokyo. According to the median estimate of the deficit had to make 368.9 billion yen . The weakness of the yen and the additional demand for energy due to the closure of nuclear facilities have the most direct impact on Japan's imports . Sustained deficit is a major problem for the country because it could undermine investor confidence in the Japanese government debt.

Furthermore, the pressure on the currency was the U.S. data , which showed that retail sales rose 0.2 % last month , in line with expectations . Car sales fell 1.8 % , pulling down the broader indicators . For the automotive industry, this was a record year , and the slowdown in December is considered more a reflection of poor weather conditions and calendar amendments than the beginning of a new trend. Excluding autos, retail sales rose by December confident 0.7%. Value of retail sales for previous months were revised down to an increase of 0.5 % in October and in November, rising by 0.4%. Total retail sales for 2013 increased by 4.2 % compared with the previous year , slowing the pace of 2012 to 5.4% and 7.5% growth in 2011 .

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