European Session – US dollar flat of employment report
December 6, 2013 1:18 pm
The euro was little changed against the dollar during the European session, rising by 0.04% to 1.3660. The euro made further progress versus the yen, rising by 0.11% to 139.66.
In economic news, German industrial orders missed expectations by dropping sharply month-on-month during October, nearly reversing the previous month’s gain. Orders fell by 2.2%, against expectations of 0.6% fall and a revised gain of 3.1% during September. The reason behind the drop was a sharp reduction in the volatile capital goods orders component.
In the UK, house prices rose at their fastest rate in six years, up by an annual 7.7% pace for the three months ending in November, according to mortgage lender Halifax. Rapidly climbing house prices could put pressure on the Bank of England to reduce its monetary stimulus sooner rather than later.
As a result, the pound gained 0.21% to trade at 1.6353.
Trading was relatively subdued ahead of the US employment report. The consensus view was that the US economy would post healthy job gains, but those gains would not be enough to convince the Federal Reserve to start reducing the rate of asset purchases during its December meeting.
Such a reduction or tapering, would most likely take place during the March Fed meeting.
The dollar made some headway versus the yen, rising by 0.06% to 102.23.
The euro was little changed against the dollar during the European session, rising by 0.04% to 1.3660. The euro made further progress versus the yen, rising by 0.11% to 139.66.
In economic news, German industrial orders missed expectations by dropping sharply month-on-month during October, nearly reversing the previous month’s gain. Orders fell by 2.2%, against expectations of 0.6% fall and a revised gain of 3.1% during September. The reason behind the drop was a sharp reduction in the volatile capital goods orders component.
In the UK, house prices rose at their fastest rate in six years, up by an annual 7.7% pace for the three months ending in November, according to mortgage lender Halifax. Rapidly climbing house prices could put pressure on the Bank of England to reduce its monetary stimulus sooner rather than later.
As a result, the pound gained 0.21% to trade at 1.6353.
Trading was relatively subdued ahead of the US employment report. The consensus view was that the US economy would post healthy job gains, but those gains would not be enough to convince the Federal Reserve to start reducing the rate of asset purchases during its December meeting.
Such a reduction or tapering, would most likely take place during the March Fed meeting.
The dollar made some headway versus the yen, rising by 0.06% to 102.23.
Related Posts: