Forex: Friday’s review

The euro lost all previously won positions against the dollar after the European Central Bank said that the bank will pay 1.74 billion euros for the first loan LTRO on February 27 against 3.79 billion euros the previous week. Meanwhile, the ECB announced that nine banks paid the first loan LTRO 27 February to 9 banks in the previous week, and 356 bank loan payments for the 2nd operation LTRO on February 27. In addition, the European Central Bank said that the bank will pay 61.1 billion euros in the second three-year loan LTRO on February 27.

The pressure on the European currency has also forecast by the European Commission, according to which, eurozone GDP will decrease by 0.3% in 2013 and grow by 1.4% in 2014, while the budget deficit in the euro area will be 2.8% of GDP in 2013 and 2.7% in 2014. Recall that the Commission previously predicted growth of euro area GDP by 0.1% in 2013 and 1.4% in 2014

The Australian dollar rose sharply against the dollar, departing from a seven-week low amid comments head RBA Stevens, who echo the statements of the last minutes of the Bank, and concluded that the monetary easing "done its job" in supporting the Australian economy. In addition, he noted that for an intervention to weaken the Australian dollar threshold is quite high and it is necessary to be sure that the currency is seriously overvalued. In addition, Stevens has signaled the possible end of a cycle of declining interest rates. At the same time, economists note that the next change in interest rates is likely to be to the downside, and not increase as the economy there are increasing signs of growth. Recall that the Reserve Bank of Australia cut interest rates by 1.75 percentage points, to 3.00% in an effort to support the growth of the economy. Latest interest rate cut was in December.

Course of the New Zealand dollar rose against the dollar, which was the first time in three days, after a report showed that the amount of spending on credit cards has increased in the last month, registering with the third monthly increase in a row.

The yen traded in a narrow range, as market participants are waiting for the meeting of Prime Minister Shinzo Abe and U.S. President Barack Obama.