GBP Remained Close To 11 Month Lows Against USD
ICM Brokers | Oct 15, 2014 02:07AM ET
EUR/USD
The euro dropped against the dollar on Tuesday after sluggish European data stoked market expectations for the European Central Bank to roll out fresh stimulus measures to spur recovery. The ZEW Centre for Economic Research reported earlier that its German economic sentiment index fell to -3.6 this month from September’s 6.9 reading. Analysts had expected the index to come in at 1.0 in October. The index of euro zone economic sentiment plunged to 4.1 in September from 14.2 in August, well below expectations for a decline to 7.1. A separate report showed that eurozone industrial production contracted 1.8% in August from July, outpacing expectations for a 1.6% decline. July's figure was revised to a 0.9% rise from a previously estimated 1.0% increase. Year-on-year, industrial production fell 1.9% in August, surpassing expectations for a 0.9% decline and after rising at a rate of 1.6% the previous month..
GBP/USD
The pound remained close to 11-month lows against the US dollar on Tuesday, as lower than expected U.K. inflation data continued to weigh, as well as growing concerns over the outlook for global economic growth. In a report, the U.K. Office for National Statistics said the rate of consumer price inflation slowed to 1.2% last month from 1.5% in August. Analysts had expected U.K. CPI to fall to 1.4% in September. Month-over-month, consumer price inflation was flat in September, after rising 0.4% in August. Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a rate of 1.5% last month, down from 1.9% in August. Analysts had expected core prices to rise 1.8% in September. Meanwhile, market sentiment remained under pressure amid global economic growth concerns after the International Monetary Fund cut its forecasts for global growth in 2014 and 2015 last week. Markets were also jittery amid the widening Ebola epidemic, as the U.K. announced on Monday that it will begin conducting fever tests for Ebola at Heathrow airport. Health Secretary Jeremy Hunt said it is likely that the virus will be diagnosed in the U.K. by end of year.
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USD/JPY
The dollar regained ground against the yen on Tuesday, as mounting concerns over the outlook for global economic growth sent the safe-haven greenback broadly higher. Dollar recovers from Fed disappointment, regains ground vs. yen Dollar turns higher vs. yen as growth concerns persist USD/JPY hit one-month lows of 106.76 during late Asian trade, before erasing losses to trade at 107.09, up 0.23%. Demand for the safe-haven yen strengthened last week after the International Monetary Fund cut its forecasts for global growth in 2014 and 2015 and warned that global growth may never reach its pre-crisis levels ever again. Markets were also jittery amid the widening Ebola epidemic. The U.K. announced on Monday that it will begin conducting fever tests for Ebola at Heathrow airport, after Health Secretary Jeremy Hunt says it is likely that the virus will be diagnosed in the U.K. by end of year.
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