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Message: [QUOTE="MasterForex Broker, post: 53349, member: 16067"] [size=2][b]Overview of the main economical events of the current day - 10/10/2013[/b] [color="#4169E1"][b]The Pound Fell After Weak Industrial Output Data[/b][/color][/size] The US dollar rose to most major currencies before the publication of September FOMC Meeting Minutes where it was decided not to taper off QE – and reached 3-week high according to the dollar index. British pound dropped at weak industrial output data and trade balance; the euro also fell. Japanese yen weakened amid Japanese stock market growth which showed the best growth since late September. Canadian dollar reached a monthly low according to the US dollar, AUD and NZD looked slightly better. FOMC Meeting Minutes showed that FOMC members who voted against QE3 reduction explained their decision with weak economic statistics, worsening financial conditions and fiscal risks. However, many Fed leaders still would like to start QE3 tapering off by the end of the year and finish this program by the middle of 2014. The decision to put off QE reduction was taken be a few votes. It increases the possibility of bond purchase reduction within next several months. President Obama said on Wednesday about the nomination of Janet Yellen for the Fed chair. According to The Wall Street Journal the budget conflict and the republican opposition can delay the appointment of a new Fed chair. Meanwhile, the US conflict between the white House and the republican opposition is still going on; state institutions still don’t work and there are no signs of exit from this situation yet. President Obama announced that the American economy risked going into a deep recession if the Congress didn’t agree to a government financing recovery and didn’t increase debt limit – and he urged the opponents to refuse from blackmailing. The pound fell on Wednesday to 3-week low Vs the dollar after the release of weak industrial output data and UK trade balance. Industrial output decrease rate turned out the highest for almost a year. Industrial output unexpectedly fell by 1.1% Vs the prior month, manufacturing production – by 1.2% while its growth was expected. Although Total Trade Balance Deficit fell in August from 3.4 billion pounds to 3.3 billion but it turned out worse than expected decrease to 2.1 billion. [center][IMG]http://masterforex.com/useruploads/images/aug_uk_production.png[/IMG][/center] The euro followed the pound and updated October lows having no reaction to German industrial output data that turned out a little better that forecasted due to car production increase by 13.6%. German industrial output rose by 1.4% in August in comparison with the prior month against the expectations of growth by 1%. The decrease in July was less than reported before. Bundesbank marks that extremely good consumer sentiment supports German economy. [center][IMG]http://masterforex.com/useruploads/images/aug_germ_production_1.png[/IMG][/center] apanese yen and Swiss franc weakened on Wednesday against the dollar amid the nomination of Janet Yellen as a Fed chair. Yellen is famous for her adherence to a mild monetary policy and her support of further measures on economy stimulation can favor the growth of risk assets and decrease the demand for safe-haven assets such as the yen and franc. [/QUOTE]

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