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.
I know this if off topic but I’m looking into starting my own blog and was wondering what all is needed to get set up? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web savvy so I’m not 100% certain. Any suggestions or advice would be greatly appreciated. Many thanks
Awesome site you have here but I was wondering if you knew of any user discussion forums that cover the same topics discussed here? I’d really love to be a part of group where I can get feedback from other experienced people that share the same interest. If you have any suggestions, please let me know. Thanks!
Hi! Someone in my Myspace group shared this website with us so I came to take a look. I’m definitely loving the information. I’m book-marking and will be tweeting this to my followers! Excellent blog and brilliant design.
Hi, I think your website might be having browser compatibility issues. When I look at your website in Safari, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, superb blog!
It’s a shame you don’t have a donate button! I’d without a doubt donate to this superb blog! I suppose for now i’ll settle for bookmarking and adding your RSS feed to my Google account. I look forward to brand new updates and will talk about this website with my Facebook group. Talk soon!
Great post however I was wanting to know if you could write a litte more on this topic? I’d be very grateful if you could elaborate a little bit further. Cheers!
I’ve been exploring for a bit for any high-quality articles or blog posts in this sort
of space . Exploring in Yahoo I at last stumbled upon this website.
Studying this info So i’m glad to show that I’ve a very just right uncanny feeling I found out just what I
needed. I most surely will make certain to don?t overlook this web site and give it a look regularly.
Wow that was odd. I just wrote an very long comment but after I clicked submit my comment didn’t appear. Grrrr… well I’m not writing all that over again. Regardless, just wanted to say fantastic blog!
I do not know if it’s just me or if perhaps everyone else experiencing problems with your site. It seems like some of the written text in your content are running off the screen. Can somebody else please provide feedback and let me know if this is happening to them as well? This might be a issue with my web browser because I’ve had this happen before. Appreciate it
This design is steller! You certainly know how to keep a reader amused.
Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Fantastic job.
I really loved what you had to say, and more than that,
how you presented it. Too cool!