Euro rises to three-week high versus dollar

2017-11-14 17:59:53 GMT (
Euro rises to three-week high versus dollar

Euro rose nearly one percent to the highest since October 26 versus the dollar in American trade, following a basket of data from the euro zone and the US, and after a host of speeches by major global central bankers in Frankfort. 


As of 05:47 GMT, EUR/USD rose 0.89% to 1.1771 from the opening of 1.1667, with a three-week high at 1.775, and a session-low at 1.1662. 


Earlier German data showed the preliminary reading for third quarter growth accelerated to 0.8% from 0.6% in the second quarter, while the final reading for October consumer prices steadied at zero, beating expectations and down from 0.1% growth in September.


Italian GDP grew 0.5% in line with expectations in the third quarter, up from 0.3% in the second, while GDP growth for the overall zone steadied at 0.6% as expected. 


Otherwise, industrial production for the whole zone fell 0.6% in line with expectations, compared to a 1.4% increase in September, while the ZEW Economic Sentiment survey rose below expectations in Germany and beyond them in the whole zone. 


On another note, Federal Reserve Chair Janet Yellen, Bank of Japan governor Haruhiko Kuroda, Bank of England Governor Mark Carney, European Central Bank President Mario Draghi, have all participated in a panel discussion titled "At the heart of policy: challenges and opportunities of central bank communication" at the Central Bank Communications Conference hosted by the European Central Bank, in Frankfurt.


Draghi noted that transparency on the course of monetary policy has become one of the tool for central banks, and an effective one at that, noting the use of modern communications sites such as twitter to keep the public in constant knowledge, and adding that expounding on the future directions help in regulating the markets behavior. .


Otherwise, US producer prices rose 0.4% in October, beating expectations of 0.1%, and same as September, while core prices, excluding food and fuel prices, also rose 0.4%, same as before and passing forecasts of a 0.2% advance. 


In Frankfort, Janet Yellen said the monetary policy should be depended on the economic situation, noting the importance of the market's understanding that the direction of monetary policy isn't absolute or predetermined. 


Yellen said that every member of the FOMC expresses his\her private views in speeches and other lines of communications, noting that healthy arguments are being conducted all the time on monetary policy inside the FOMC meetings. 


Finally, Yellen said the Fed is completely aware that it might require exceptional tools to deal with shocks, noting that risks on financial stability remain moderate, and that the FOMC is taking a direction to balance the targets of inflation and employment. 


On another note, US Treasury Secretary Steven Mnuchin said earlier today he's not worries about whether the Senate tax reform bill could delay reforms, noting there were but small differences on tax cuts between the bills in the Senate and the House of Representatives, and asserting US president Donald Trump targets a growth rate of 3% or above for the economy. 


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