Daily Market Report – 25/09/2014

EUR
The Euro struggled on Wednesday after German business confidence fell more than
analysts forecast in September as economic and political risks in the euro area
increase.

The outlook doesn’t look great, Europe’s largest economy contracted in the
second quarter and euro-area growth stalled as international political tension
and stubbornly high unemployment sapped sentiment. The risks prompted the
European Central Bank this month to say it’ll be more active in adding

EUR
The Euro struggled on Wednesday after German business confidence fell more than
analysts forecast in September as economic and political risks in the euro area
increase.

The outlook doesn’t look great, Europe’s largest economy contracted in the
second quarter and euro-area growth stalled as international political tension
and stubbornly high unemployment sapped sentiment. The risks prompted the
European Central Bank this month to say it’ll be more active in adding
stimulus to the euro area by starting asset purchases, further weakening the
currency.

Yesterday Mario Draghi said the ECB will keep its monetary policy
“accommodative” for as long as needed and he will do everything it can to avoid
the euro-zone going into deflation.

Draghi also stated that monetary policy alone cannot bring Europe back to
growth. He stated that he doesn’t see a risk of deflation and ensured
unemployment is the largest concern to Europe.

USD
The Dollar gained against a host of its major counterparts during yesterday’s
session after new home sales hit a six year high. Sales of new single family
homes jumped 18% in August to an annual rate of 504,000. This is the
second straight month of gains, with July’s data revised upwards to show a 1.9%
increase compared to the previously reported 2.4% fall.

Helped by the housing figures, the Dow Jones Industrial Average has edged up by
around 9 points, although investors are still cautious given concerns about the
global economy, and the US air-strikes against Isis in Syria. 

Key Announcements:
13:30 BST – USD – Durable Goods Orders m/m
13:30 BST – USD – Unemployment Claims
14:40 BST – GBP – Bank Of England Governor Mark Carney Speaks

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