The dollar is gaining ground against both the Euro and the pound sterling Friday afternoon, but is basically flat in comparison to the Japanese Yen. The lack of U.S. economic data and the near absence of global economic data has investors kept the focus of investors where it has been for the past few day, on the central banks. Dovish comments from European Central Bank President Mario Draghi are responsible for the dollar’s strength against its top European rivals.
In remarks to the Frankfurt European Banking Congress, Mario Draghi pledged that the ECB would do what it must to raise inflation as quickly as possible.
“At the December Governing Council meeting we will thoroughly assess the strength and persistence of the factors that are slowing the return of inflation towards 2 percent,” Draghi said.
He added, “If we conclude that the balance of risks to our medium-term price stability objective is skewed to the downside, we will act by using all the instruments available within our mandate.”
Draghi’s remarks were seen as a sign that the ECB may ramp up its asset purchase program following its meeting next month.
The monetary stimulus measures already taken by the European Central Bank need more time to have a real impact on the Eurozone economy, but maintaining ultra-loose policy for a long time raises the risk of losing their efficiency, the bank’s policymaker Jens Weidmann said Friday.
“We need to be aware that the longer we stay in ultra-loose monetary policy mode, the less effective this policy will become and the more the attendant risks and side-effects will come into play,” Weidmann, who heads Germany’s Bundesbank, said in a speech at the 25th European Banking Congress in Frankfurt.
He pointed out the exuberance in some financial markets and the problems faced by life insurers as examples.
“We should not ignore the risk that fiscal policy could get used to the very low interest rates,” Weidmann added.
The dollar has climbed to around $1.0650 against the Euro Friday afternoon, from Thursday’s 4-session low of $1.0760.
Germany’s producer prices declined at the fastest pace since early 2010, data published by Destatis showed Friday.
Producer prices decreased 2.3 percent in October from last year, the biggest fall since February 2010, when prices declined 3 percent. Producer prices have been falling since August 2013. Economists had forecast prices to fall 2 percent after easing 2.1 percent in September.
The buck has risen to around $1.5190 against the pound sterling, from yesterday’s 2-week low of $1.5335.
U.K. public sector net borrowing, excluding public sector banks, increased unexpectedly in October, figures from the Office for National Statistics showed Friday. The PSNB, excluding public sector banks, climbed to GBP 8.2 billion in October from GBP 7.1 billion in the same month last year. Meanwhile, it was expected to narrow to GBP 6.0 billion.
Japan’s economy is expected to continue recovering moderately, the Bank of Japan said in its monthly report on Friday.
The bank reiterated that exports and industrial production are set to remain more or less flat for the time being, but after that, they are likely to increase moderately.
The greenback reached an early high of Y123.052 against the Japanese Yen, but has since eased back to around Y122.840, nearly unchanged for the session.
Hey there! I know this is kinda off topic however , I’d figured I’d ask. Would you be interested in exchanging links or maybe guest authoring a blog post or vice-versa? My site goes over a lot of the same topics as yours and I believe we could greatly benefit from each other. If you’re interested feel free to shoot me an e-mail. I look forward to hearing from you! Fantastic blog by the way!
Howdy terrific blog! Does running a blog similar to this require a great deal of work? I have very little knowledge of computer programming but I had been hoping to start my own blog in the near future. Anyhow, if you have any suggestions or techniques for new blog owners please share. I understand this is off topic but I simply wanted to ask. Thank you!
Have you ever considered about including a little bit more than just your articles? I mean, what you say is valuable and everything. However just imagine if you added some great images or video clips to give your posts more, “pop”! Your content is excellent but with images and clips, this blog could certainly be one of the very best in its niche. Excellent blog!
I’m not sure exactly why but this website is loading extremely slow for me. Is anyone else having this issue or is it a issue on my end? I’ll check back later and see if the problem still exists.
Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your blog? My blog site is in the exact same niche as yours and my users would definitely benefit from some of the information you present here. Please let me know if this alright with you. Thanks a lot!
Cheers to conflict of leaders hack resource shown by our
group-you may ultimately get all the things you need through Internet
connection.
I keep listening to the newscast talk about receiving boundless online grant applications so I have been looking around for the best site to get one. Could you tell me please, where could i find some?
I would like to express some thanks to this writer just for bailing me out of this type of dilemma. As a result of browsing throughout the world-wide-web and getting views which are not beneficial, I thought my life was over. Existing without the presence of strategies to the problems you have fixed as a result of this site is a crucial case, and the ones which might have negatively damaged my career if I hadn’t noticed your blog post. Your own expertise and kindness in controlling a lot of stuff was very useful. I don’t know what I would have done if I hadn’t come upon such a solution like this. I’m able to at this moment look forward to my future. Thank you so much for this professional and effective guide. I won’t be reluctant to propose the website to any person who ought to have counselling about this matter.
I keep listening to the rumor speak about getting free online grant applications so I have been looking around for the finest site to get one. Could you advise me please, where could i find some?
Great tremendous issues here. I am very glad to peer your article. Thank you so much and i’m taking a look ahead to touch you. Will you please drop me a mail?