25, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The U.S. dollar rose versus the yen and the commodity currencies on Thursday, but fell versus the euro and the pound. The euro strengthened amid the growth of business activity in Germany. The pound grew after a positive report from the Confederation of British Industry. The yen fell amid BoJ 2-day meeting.

Euro strengthened on Thursday amid growing business activity in Germany, the largest economy in the eurozone. PMI index in the industrial sector rose in November to a 29- month high 52.5 from 51.7 p. in October, in the services sector - to 9 -month high; PMI Composite grew to 10 -month high. At the same time, similar indices fell against expected growth in France. Eurozone activity in the industrial sector increased slightly, in line with expectations, while Services PMI declined. Eurozone PMI composite index fell to a three - month low of 51.5 from 51.9 p. October. Euro jumped after ECB President Mario Draghi weakened the expectations of deposit rate decrease.

The pound rose amid a positive report from the Confederation of British Industry (CBI), having reached its highest level since 1995. CBI Industrial Order Expectations reached +11 in November versus -4 in October. Industrial production balance was 24 against nine in October. As the director of CBI on the economy - the new data have become an encouraging sign of recovery of the manufacturing sector.