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 think this is among the most important info for me.
Andd i’m glad reading your article. But want to remark on few general things, The siite
style is ideal, the articles is really nice : D. Good job, cheers
Woah! I’m really enjoying the template/theme of this blog. It’s simple, yet effective. A lot of times it’s challenging to get that “perfect balance” between usability and visual appearance. I must say you’ve done a great job with this. Also, the blog loads extremely quick for me on Firefox. Superb Blog!
Howdy are using WordPress for your blog platform? I’m new to the blog world but I’m trying to get started and create my own. Do you require any html coding expertise to make your own blog? Any help would be greatly appreciated!
When I originally commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get three emails with the same comment. Is there any way you can remove me from that service? Cheers!
Hi there! Someone in my Facebook group shared this website with us so I came to look it over. I’m definitely enjoying the information. I’m bookmarking and will be tweeting this to my followers! Outstanding blog and brilliant design.
Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You definitely know what youre talking about, why waste your intelligence on just posting videos to your site when you could be giving us something informative to read?
I know this if off topic but I’m looking into starting my own weblog and was wondering what all is needed to get setup? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web smart so I’m not 100% positive. Any recommendations or advice would be greatly appreciated. Thanks
Have you ever thought about writing an ebook or guest authoring on other sites? I have a blog based on the same topics you discuss and would really like to have you share some stories/information. I know my readers would value your work. If you are even remotely interested, feel free to send me an email.
Howdy! This is kind of off topic but I need some help from an established blog. Is it hard to set up your own blog? I’m not very techincal but I can figure things out pretty fast. I’m thinking about creating my own but I’m not sure where to begin. Do you have any points or suggestions? With thanks
Hi there, i read your blog occasionally and i own a similar one and i was just wondering if you get a lot of spam responses? If so how do you protect against it, any plugin or anything you can recommend? I get so much lately it’s driving me mad so any help is very much appreciated.