Euro rise up to the highest level in 11 months

Euro rise up to the highest level in 11 months

The euro rose to its highest level in 11 months against the dollar yesterday, and strengthened its gains against the yen after Japan increased pressure on its central bank, while the European Central Bank played down the possibility of interest rate cuts in the euro zone. While European stocks settled little changed.

The euro hit a new high of nine and a half months against the pound sterling, yesterday, extending last week’s gains, benefiting from the most positive attitude of policy makers in the euro zone versus the growing concerns about the British economy.

The euro rose about 0.4% to 83.03 pence, its highest price since the fourth of April, breaking the barrier options at 83 pence.

The traders and analysts said: The positive attitude of the policy makers in the euro zone leaves room for the rise of the euro more than that, especially against expectations for further monetary easing in Japan.

He urged Japanese Prime Minister Shinzo Abe Central Bank the day before yesterday, to adopt a target level of inflation at 2% medium-term target and not long-term. This prompted the yen to its lowest level in two and a half years, against the dollar and the lowest level in 20 months against the euro.

He hinted European Central Bank President Mario Draghi, on Thursday, that the interest rate cut is not needed at the current stage, and pointed to signs of improvement in the euro-zone economy and financial markets.

Consecutive hikes

The euro rose 0.1% against the dollar to 1.3360 dollars and had recorded earlier $ 1.2404, its highest level since late February 2012.

Against the yen, the euro was up 0.4% to 119.40 yen after earlier record 120.13 yen, its highest level since May 2011. This is in addition to the increase exceeded 3% last week.

The dollar rose 0.25% to 89.41 yen after earlier record 89.67 yen, its highest level since June 2010.

The euro rose to its highest level in nearly 13 months, against the Swiss franc, yesterday, with receding fears over the euro zone debt crisis, and by the comments of the European Central Bank last week, which pointed to a decline opportunities to reduce the interest rate in the near term.

The euro rose 0.4% to 1.2237 francs, according to data «y. B. S», the highest level since late December 2011, and traders said: It is no options barrier at 1.2250 francs.

European stocks

European stocks settled little changed in early trade yesterday, and he shares the French energy company «y. DVD. AFP biggest gainers, after the company reached an agreement with the government on taxes.

The FTSEurofirst 300 index reached in intraday 1163.91 points, stable near its highest level in two years, after rising about 3% since the beginning of the year.

Said Craig Arlam, market analyst at Alpari: It is expected that the announcement of the results season remains the main engine of companies in market sentiment. He continued: «Because earnings expectations for the fourth quarter are already low, it is difficult to see another negative factor. So I expect that European markets continue to climb this week. And will move attention to the banking sector this week, where he is expected announcement of good results. JP Morgan and Goldman Sachs. Across Europe, opening FTSE 100 was up 0.1%, while Germany’s DAX index rose 0.3% and France’s CAC 40 0.4%.

 

Lower factory output in the euro zone

Factory output fell in the euro zone for the third consecutive month in November, compared with expectations for an increase, but the data issued yesterday whale evidence supporting hopes that the recession currency bloc may have reached its maximum extent. The European statistics office Eurostat said industrial production in seventeen countries that use the euro currency fell 0.3% in November compared to the previous month, extending its decline since the summer.

Factory production fell two thirds of which comes from Germany, France and Italy about 4% on an annual basis in November. On the other hand, said the Organization for Economic Cooperation and Development said yesterday that growth forecasts for most industrial countries is improving, led by the United States and Britain while the both the Chinese and Indian economies turn positive. The organization said in a statement on the monthly forward-looking indicators that growth prospects for the core countries in the euro zone – France, Germany and Italy – and the bloc as a whole has started to stabilize. The Composite Index settled for the economies of the thirty-three members of the organization at 100.2 in November, the same level recorded in October and with little more than the long-term average of 100. Reuters