Forex: Friday’s review

The euro fell against the dollar after the European Central Bank representative Kere said that the central bank will be forced to repay earlier loans, which were presented to them in a transaction LTRO (long-term refinancing operations), back in 2011. Recall that the loans were offered troubled eurozone banks to increase liquidity of the banking system. Economists say that the early repayment of loans, is likely to cause upward pressure on interbank rates on borrowing, as banks will be forced to go to another place for short-term financing.

The single currency fell to almost maximum, since February 2012, as Kere added that he does not expect the transaction to repay loans LTRO will have an impact on the overnight rate, which is one of two main interbank borrowing rates used in the eurozone. However, since in the last days of borrowing rates rose, the euro began to decline.

The pound fell against the dollar after the published data showed that retail sales fell last month by 0.1%, while analysts had expected an increase of 0.2%. Recall that in the last month, the value of this indicator was unchanged.

The Swiss franc weakened against the euro after the union called on the central bank to change the limit of the exchange rate EUR / CHF up to the level of 1.25 francs, and "defend" it at any cost. Recall that it is now at 1.2 francs, and held at this level since September 2011.

The cost of the Canadian and Australian dollar fell against most currencies, which was due to a decline in commodity prices, including oil.