EUR Weakens on Risk to Economic RecoveryAugust 07, 2014 Posted by: Joe O'Leary
The dollar continues to march higher against the EUR. Today, the European Central Bank President Mario Draghi signaled monetary policy will diverge from the U.S. for an “extended period of time”. The euro weakened as Draghi said the risks to the economic recovery in the region are increasing from the conflict in Ukraine and from recent economic data that have been disappointing. The U.S. currency rose against the majority of its 16 main peers as unemployment claims dropped, pushing the average over the past month to an eight-year low. Russia’s ruble declined to a three-month low as political tension in Ukraine deepened. Australia’s dollar fell by the most in a month against its U.S. counterpart as traders revived bets the nation’s central bank will cut interest rates after unemployment jumped.
• The US jobless claims fell 14k to 289k (median 301k) for the week-ended August 2 after the 303k reading in the prior week.
• The Canadian building permits surged 13.5% in June, building on an upwardly revised 15.4% rise in May (previously +13.8%).
• BoE's MPC announced unchanged policy as was widely anticipated, leaving the repo rate at 0.5% and QE total at GBP 375 bln. No statement was issued, as is usual following unchanged decisions.
• ECB left policy unchanged, as expected.
• NYMEX crude is up 16 cents at $97.08/bbl in early trade, after touching six-month lows of $96.55 lows earlier left policy unchanged, as expected.
08/08 CAD: Unemployment Rate (July)
08/08 JPY: Consumer Confidence Index
08/08 USD: Whole Sale Inventories (June)
08/10 RUB: Russian Trade Balance (June)
08/11 CAD: Housing Starts(July)
08/11 JPY: Japan PPI(July)
08/11 USD: US Mortgage Delinquencies(Q2)
08/11 EUR: Wholesale Price Index(Jul)
08/12 GBP: UK GDP(2Q)
08/12 JPY: Japan GDP(2Q)
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