Euro: The euro continued to rise on Monday against almost all major currencies amid support which was provided this day by fact that the majority (473 deputies voted for the project) of the lower house of the German parliament approved the program of financial aid to Greece. Tuesday’s report showed that euro zone’s producer prices rose by 0.1 % in monthly term and 2.6% in yearly, which was higher than forecasts of 0.0 % and 2.5 %. As the result, there were more market participants who entered in long positions on the EUR / USD pair. On Wednesday, the EU finance ministers reconfirmed their readiness to give Greece more time to reduce the budget deficit to the targeted levels. The EUR / USD pair rose to $ 1.3126 at the beginning of the day, however, retreated later as the disappointing results of the Spanish bond auction in rising yields prompted investors to take profits. Also, the weak results of the retail sales data in October, which showed sharp decrease by 1.2 % compared to the previous month -0.2 % and the annual results of -3.6% compared to -0.8% in previous period pressured the trading dynamics of the asset this day. The euro grew again on Thursday the publication of the decision of the ECB to leave key interest rate unchanged at 0.75 %. The decision was in line with the forecasts. The big disappointed news this day were the forecasts of the European Central Bank President, Mario Draghi who said that the European economy weakness will continue in the next year adding that he sees "risks" for the region, and therefore, noticing that the central bank may lower interest rates in the nearest future. Also, Mr. Draghi said that the ECB predicts that economy will shrink by 0.5 % this year, slightly more than the 0.4% reduction about which was originally reported in September. In addition, the ECB lowered its inflation forecast for next year to 1.6% from 1.9 %. The report on the gross domestic product in the euro zone recorded decline by 0.1 % in the third quarter, compared with a fall of 0.2% in the previous three months. The euro fell sharply against its competitors and the EUR / USD pair sunk down to $ 1.2950 area, where it finished this week.
US Dollar: The dollar fell on Monday against the data on index of business activity in the industry HSBC China which recorded growth in November to 50.5 points after 50.4 points a month earlier. The result showed positive performance of Chinese production and supported the indices of the region. On Tuesday, the concerns about "financial cliff” in the U.S strangely affected the dynamics of the U.S. dollar. The dollar index fell this day by 0.25% to 79.57 on. Usually the currency acts with growing as a safe haven asset in times of uncertainty. Amid forecasts of president of ECB, the greenback rocketed on Thursday, the dollar index, which is used to track the value of the dollar against of the six currencies, U.S. partners, rose by 0.7% to 80.298, where it finished on Friday adding almost 0.3% this week.
British Pound: The British pound continued to strengthen against its competitors after the index of business activity of the UK in the manufacturing sector registered a growth to 49.1level, exceeding forecasts and the previous values. The recent comments of the head of the Bank Mr. King suggested that in the coming months the volume of purchases of government bonds can be increased, despite the fact the market is waiting for the Central Bank to leave interest rates and the asset purchase program unchanged. On Tuesday, the GBP / USD pair reacted positively moving up to $ 1.6125 when the Purchasing Manager Index Manufacturing of UK showed growth by 1.9 points in November beating the forecasts of analysts. The currency showed a steady growth against the dollar even not taking into account Wednesday’s report of Purchasing Manager Index for services sector the result of which disappointed investors by recording in November the value of 50.2 versus forecasted 51. The British pound started Thursday very positive amid data showing that Britain's trade deficit rose to £9.539 billion from £8.439 billion for the previous month widening more than expected and driven by a sharp fall in exports to countries outside of the EU as well as due to the increase of imports from USA. In addition, the decision of Bank of England on leaving the key interest rate unchanged at 0, 5% and the amount of the program of asset purchases at around £375 billion pounds provided some support to the currency this day. However, the pound could not keep highs of the day and dramatically collapsed, the GBP / USD pair dropped to $ 1.6038 level due to lowering growth forecasts for the European economy by the ECB.
New Zealand dollar: The New Zealand dollar became cheaper when the report provided by the Bureau of Statistics on New Zealand’s Terms of Trade Index showed decrease by 3.2 % compared to the forecast of 1.5% and was much worse than the previous result for 2nd quarter of 2.6%. After the Reserve Bank of the New Zealand left the interest rate unchanged at 2.5% noticing that the country’s economy growth is likely to accelerate in nearest future.
Australian dollar: The Australian dollar rose, despite the decision of the RBA to lower the interest key rate by 25 basis points (0.25%) to 3.00 % which is the lowest level since 2009. This entire trend was caused by the fact that some of analysts predicted that the rate would be reduced by 0.5 %. The central bank mentioned in its decision that the slowdown in hiring and a high rate of the National still negatively affect the manufacturing and tourism sector. However, after the release of Gross Domestic Product report, which showed that the performance of the Australian economy in the 3rd quarter decreased by 0.1% thus recording growth by only 0.5 % instead of forecasted 0.6% the pressure on the currency significantly increased and it dropped to $1.0450. As it was shown by the Bureau of Statistics, the Australia's GDP in annual terms rose by 3.1% from a revised 3.8 %. The result coincided with analysts' forecasts.
Swiss Franc: The EUR / CHF pair showed the biggest increase since September 2012 when the Credit Suisse Group AG informed some its customers that it will introduce negative interest rates on their cash balances holds in Swiss francs.
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