European session: the euro rose substantially against the U.S. dollar

Data

1:30 Japan Changes in the level of wages, y / y in November +0.1% +0.4% +0.5%

The euro rose to the highest level since October 2011 in relation to the dollar as a thin market and low trading volumes contribute to significant fluctuations . In addition, the course of trade affected statement by a member of the Governing Council of the European Central Bank , Jens Weidmann , who said that the ECB should raise rates if inflationary risks in the euro area will increase. He noted that the persistence of low rates for an extended period may have a negative impact on policy reforms in the economies of the euro zone , adding that weak inflationary pressures do not give right to any easing of monetary policy . " We must take care to raise interest rates again . Euro area only gradually recovering from the worst economic crisis in the postwar period , and pricing risks are negligible. This justifies the low base rates ," he said .

The yen fell against the dollar , reaching at this level Y105 to the dollar for the first time since October 2008 , amid rumors that the recent rally was excessive , and the technical indicators signal an overbought against the yen . Also, add that market participants put on divergence rates of the Federal Reserve System, which has moved to reduce the incentives , and the Bank of Japan announced its readiness to expand if necessary unprecedented program to support the economy . Recall that at its last meeting, the Fed decided to cut the current program to stimulate the economy with $ 85 billion to $ 75 billion in the meantime, the Bank of Japan monthly buys government bonds worth more than 7 trillion yen ( $ 67 billion ) in an attempt to put an end to 15 years of deflation.

Also falling yen was associated with the release of inflation data in Japan. In November figure exceeded 1% for the first time since 2008 that a marked progress in the policy of Prime Minister Shinzo Abe , unreduced to overcome 15 years of falling prices in the third largest economy in the world. Prices excluding fresh food rose by 1.2 % compared with a year earlier. Figure exceeded the median forecast of economists, who expect prices to rise by 1.1%.

Pound rose to its highest level in more than two years against the dollar on increasing confidence about the recovery of the UK economy , which is caused by the revival of the housing market.

According to the average forecasts of experts , the British housing prices , which are calculated Nationwide Building Society, rose 0.7 percent in December , compared with an increase of 0.6 percent last month . Add that this report will be presented next week .

"We expect that the economic recovery in the UK will continue at a solid pace in the next year , which will support capital investments and improving domestic demand," said Geoffrey Yu, senior currency strategist at UBS AG. " This should support the pound ."

Moreover, economists expect that the UK economy will grow by 2.4 percent next year , that will be the strongest pace since 2007 , compared with 1.4 percent expansion , which is projected for this year.

EUR / USD: during the European session, the pair rose to $ 1.3824 , but then fell to $ 1.3805

GBP / USD: during the European session, the pair rose to $ 1.6577 , then back up to $ 1.6500

USD / JPY: during the European session, the pair fell to Y104.64, but recovered to a maximum session