Currencies: Euro tumbles against the dollar back lower against the Swiss franc
London (awp / afp) – The euro fell sharply against the dollar Friday, from under the threshold of $ 1.15 for the first time since November 2003, weighed down by a possible announcement of asset purchases by the European Central Bank (ECB) next week, and resumed its decline against the Swiss franc.
Around 5:15 p.m. GMT (6:15 p.m. CET) The single European currency was worth 1.1532 dollars, against 1.1623 dollars on Thursday to 2200 GMT. The euro fell Friday around 3:45 p.m. GMT at 1.1460 dollars, its lowest level since 11 November 2003 and going under $ 1.15 for the first time since that date.
L euro resumed its decline against the Swiss franc at 0.9799 against 1.0035 franc franc on Thursday and 1.2010 on Wednesday before the decision of the Swiss National Bank (SNB) to remove the floor rate.
The European currency was trying to take against the Japanese currency to 135.41 yen against 135.12 yen the night before. The euro fell early Friday Asian trading at 134.71 yen, its lowest in three months.
The dollar gained ground against the Japanese currency to 117.43 yen against 116 25 yen Thursday.
The slide of the euro was done in a context of “high volumes of trade,” noted David Rodriguez, analyst at DailyFX.
The decline in the euro against the dollar accelerated Friday as intensified speculation about the announcement of asset purchases, including sovereign debt by the ECB at the end of the next monetary policy meeting the institution planned for Thursday.
These asset purchases would aim to stimulate economic activity but as they are related to liquidity injections into the financial system, they would have the collateral effect dilute the value of the euro.
In addition, the euro was “penalized by the fact that two Greek banks seeking liquidity from the ECB before the elections,” noted Kathleen Brooks , an analyst at Forex.com.
Indeed, Eurobank and Alphabank, two of the four major Greek banks, anticipating a lack of liquidity linked to the electoral context of the country have asked the ECB recourse to the program emergency liquidity (ELA) provided by the institution, has-been learned Friday from the Bank of Greece.
Most importantly, the euro “capitulated” against the dollar after the publication an American flag better than expected, Brooks noted.
The moral of US households has posted up in January to 98.2 points, according to the preliminary estimate released Friday by the University of Michigan, marking the sixth month of consecutive increase and stood at its highest levels since 2004.
Overall, “despite falling oil and slowing prices of inflation in the major economies, the United States is going against the current “still showing signs of robust economic recovery, said Dennis de Jong, an analyst at UFX.com.
So “Fed (Federal Reserve) should feel more confident for 2015 that the ECB and the BoE (Bank of England),” said the analyst.
Indeed, “the contrast between the euro area and the United States is becoming more striking, “noted Chris Beauchamp, an analyst at IG.
” Obviously, the weakness of the euro will allow the euro area to earn a bit of time but it can not replace a robust growth of which there is no sign on the continent now, “said Mr. Beauchamp.
The euro was over again Pressure against the Swiss franc, still weighed down by the announcement the day before the SNB end of the floor during the Swiss currency against its European counterpart, previously fixed at 1.20 francs per euro, and thus suddenly removed the main focus of its monetary policy for more than three years.
The decision immediately provoked a surge in the Swiss franc. After the announcement of the SNB, the euro fell in the morning to its lowest level against the franc since the introduction of the single currency in 1999 to 0.8517 francs per euro.
The market interpreted the very surprising move by the SNB, which acquired far massively euros to maintain its minimum rate as an element increasing the chances of a further easing of monetary policy of the ECB since the next week
In addition, as noted Connor Campbell, an analyst at Spreadex, “one of the main beneficiaries of the withdrawal of the SNB floor was gold. The precious metal has seen its price jump, advantage of its safe haven status after suffering for months strengthening of the dollar. “
The strength of the dollar had made gold purchases, mainly denominated in dollars more expensive for investors provided other currencies, but in case of market turmoil and worries about the global economy, the investment is considered the gold safer for operators seeking safety.
To 17H15 GMT, the British pound rose against the single European currency at 76.14 pence per euro – even up to 3:50 p.m. GMT 75.95 pence, its strongest level since late February 2008. The pound fell against the dollar at 1.5142 dollar for a book.
As vis-à-vis the euro, the Swiss currency set off again on the rise against the greenback at 0.8513 francs to the dollar. The franc reached yesterday 0.7406 franc, its strongest level since August 2011.
The Chinese currency finished at 6.2078 yuan to the dollar, against 6.1883 yuan the previous day, which was its strongest level in a month.
The ounce of gold finished at 1277.50 dollars at the evening auction, against 1,259 dollars on Thursday. The price of the ounce of gold is mounted Friday around 4:35 p.m. GMT 1282.17 dollars, its highest level since early September.
Thursday Friday Course Course
5:15 p.m. GMT 2200 GMT
EUR / USD 1.1532 1.1623
EUR / JPY 135.41 135.12
EUR / CHF 0.9799 1 , 0035
EUR / GBP 0.7614 0.7656
USD / JPY 117.43 116.25
USD / CHF 0.8513 0.8632
GBP / USD 1.5142 1.5181
afp / rp
(AWP / 16.01.2015 6:54 p.m.)
(AWP / 01.16.2015 6:54 p.m.) ^ ->
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