Market review for 14.02.13: The GDPs results of Japan and Eurozone came out worse than forecasted.

Asian and European trading sessions:

Euro: The EUR / USD pair traded in the range of $ 1.3433-55 during the Asian session. On the next following session the currency fell against its rivals; the EUR / USD pair fell to the lows of $ 1.3315 after the release of the preliminary report on the GDP of the Euro zone, the result of which was unexpectedly worse than forecasted. In the 4th quarter Eurozone GDP declined from -0.6% to -0.9 % in annual term compared with an expected 0.7%. In the quarterly equivalent index fell by -0.6 % versus -0.4% forecasted.

Japanese Yen: The USD / JPY pair rose to Y93.65 during the Asian session. The market participants did not react to the decision of the Bank of Japan kept monetary policy unchanged and consider further support for the Japanese economy in the coming months due to the ongoing recession in the country. Instead, the pressure on the Japanese currency had a statement of a potential candidate for the presidency of the Bank of Japan, the former deputy head of Kazumasa Iwata, who reported that the currency has prospects for further depreciation. Also today was released data, which recorded that the Japanese economy in the 4th quarter of 2012 was not able to get out of recession decreasing in GDP by 0.4% in annual terms. The average forecast expected growth of 0.1% compared to the third quarter and 0.4% year on year. The USD / JPY pair traded around of Y93.4 level during the European session.

New Zealand dollar: The “kiwi” rises for a third day on the data released that the country's manufacturing industry grew at the fastest pace since May last year. The PMI was held higher than 50 levels, which indicates the level of economic expansion and rose in January to 55.2 from a revised 50.4 in December.

American trading session:

U.S. Dollar: The dollar had support after the release of U.S. data which showed that the number of initial claims for unemployment benefits fell last week, more than expected. According to the U.S. Department of Labor, for the week ends by February 10th, the numbers showed a larger than expected decline dropping by 27K to 341K which was lower than 360K forecasted and the revised value for the previous week of 368K.The dollar index erased yesterday’s loses and jumped over the 80.5 area.

Gold: The cost of the February gold futures on the COMEX today dropped to 1633.90 dollars per ounce reaching its five-week low.

Oil: The cost of oil fell today after data showed that the euro zone’s GDP declined by the end of last quarter, more than expected. The decline in oil prices associated with the constraining expectations for world economic growth and increased demand for energy. The March futures price of WTI dropped to $96.75 per barrel rose then, however, was able to cover some loses moving up to $97.33 area on the NYMEX.

Posted in: Market Review