Euro: The ECB president, Mr. Draghi surprised markets on Thursday by leaving the interest rates on hold. The decision to refrain from cutting interest rates was unanimous. He also noted that accordingly forecasts the inflation in Eurozone will fall below 2% mark this year and the inflation risks will be generally balanced. An addition, the single currency became definite leader when Mr. Trichet brought his comments on the decision loading considerable optimism to markets. All in all, this positive news organized a rally of the EUR / USD pair more than 200 pips per session. The couple overcame resistance of $1.3155-80 and approached very close to the technically important mark of 1.33 this day. By the end of the week the EUR / USD couple quoted at $1.3345 mark gaining for the period of this week the 2.1% positive change.
US Dollar: In the period of 7 to 11of January the U.S. dollar come under serious pressure after ECB President Mario Draghi announced serious positive changes in the financial sector of the Eurozone. The reasons for the withdrawn funds from the safe heaven assets like dollar and transferring them towards risky ones were the decrease in profitability for a number of bonds of troubled countries, and an increase in deposits in the accounts in the banking systems of Greece, Spain and Italy, which Mr. Mario noted in his speech. This statement provoked a massive sell-off of the dollar. The dollar Index by the Friday’s afternoon lost the 1.3% compared to previous week's close.
British Pound: As usual the pound maintained a great correlation with the euro and strengthened against the U.S. dollar despite the results of the meeting of the Monetary Policy Committee of the Bank of England which brought no cause for optimism. The regulator did not change its monetary and credit policy. The data publishedon Friday, on the index of industrial production for December confirmed the assumption of the continued slowing of British economy and coincided with the expectations of the market analysts. The GBP / USD pair on January 11 was able to get to 1.6125 level gaining for the week about 0.35%.
Japanese Yen: The Japanese yen declined by 1.16% against the dollar during the week and updated its multi-year lows against the other major currencies. The expectations regarding policies of the new government of Japan which will be based on much greater than expected deficit of the current account balance in Japan caused further weakening of currency. During Friday's trading the yen fell to its lowest level since June 2010 against the U.S. dollar demonstrating the decline for the ninth consecutive week which is the most prolonged decline in more than 20 years.
The commodity currencies: The Australian, New Zealand and Canadian dollars increased against the U.S dollar adding 0.545%, 0.584 % and 0.25% respectively on the strong data from China. On Thursday, the China's General Administration of Customs reported that the trade surplus of China has increased dramatically in December, to 31.6 billion against 19.6 billion U.S. dollars in November, while China's exports rose in December to 14.1%.
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