European Majors Remain Steady

Market Reviews

The euro rose against the dollar amid weakening of the US currency, receiving additional support from strong data on the Eurozone's GDP. The economy of the Eurozone increased by 0.6% quarter-on-quarter in the fourth quarter, according to forecasts. This is also the 19th consecutive extension. The annual growth in the Eurozone was 2.5%, which was the fastest growth since the financial crisis of 2008.

The business climate in the Eurozone fell to 1.54 in January. Economic confidence declined to 114.7, and industrial confidence declined to 8.8. In January, the consumer price index in Germany slowed to 1.6% yoy, below the forecast of 1.7% yoy.

The British pound also rose against the US dollar, despite weak data on lending in the UK. Approved applications for mortgages in the UK declined in December, according to data from the Bank of England. The number of approved mortgage loans fell to 61.039 in December from 64.712 in the previous month. This was the lowest level since January 2015, and also below the expected level of 66.000.

Economic data from Japan showed that retail sales grew by 3.6% yoy in December, household expenses decreased by 0.1% year-on-year. The unemployment rate increased to 2.8%.