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Thursday, August 8, 2013
CHART OF THE DAY
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Vale profit dives on FX charge; cost-cutting continues Brazilian miner Vale SA said on Wednesday its second-quarter profit plunged after the company recorded a surprise $2.78 billion in foreign exchange losses on currency derivatives and debt, one of its worst bottom-line results in a decade. Click here to read more..
BASE METALS: London copper hit its highest in nearly two months after trade data suggested China's economy is stabilising, while stronger-than-expected copper imports fanned earlier short-covering gains spurred by a weak dollar.
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"Markets are near record shorts in copper so after positive news in China's trade data, we could see copper prices finally break out from the recent trading range, but I don't think it will be sustained," said Natalie Rampono at ANZ in Melbourne. PRECIOUS METALS: Gold reversed early losses as the U.S. dollar languished at seven-week lows, with traders covering short positions in the precious metal. Gold is now up for a second straight session, having fallen to a threeweek low early on Wednesday on fears of a stimulus wind down by the U.S. Federal Reserve from next month. "The buying today is due to short covering since not much is happening to strengthen the U.S. dollar," said a Sydney-based precious metals trader. FOREX: The dollar slid to a seven-week low as uncertainty over when the Federal Reserve might begin reducing its stimulus weighed on prospects for bigger yield advantages, while the Australian dollar jumped after strong July trade numbers from China, Australia's main export market. "The market has been driven by speculation about tapering. What people are doing at the moment is to adjust their positions based on policymakers' comments and data," said a trader at a Japanese trading firm.
China July exports up annual 5.1 pct, imports surge Intrepid loses CEO amid stalemate over lost Indonesia
Guinea could void BSGR mining permits if employees
Rio Tinto to hang on to loss-making Pacific Aluminium
China July copper imports rise to 14-month high
China's July iron ore imports hit record high
helping limit a decline in operating profit to 9.3 percent to 91. Vale said the losses resulted from extraordinary. rose 30. its main market. Nearly all Vale revenue is in dollars." said Marcos Assumpção. tax. Copper . The average estimate of 18 analysts surveyed by Reuters was for profit to fall 7. 2 nickel miner.000 tonnes. Both sales and EBITDA were unaffected by the one-time currency related charges. a reddish metal used in nearly all electrical and electronic goods. Vale has been sustaining its results in a challenging environment with China slowing down and commodities prices falling. While a stronger dollar led to financial losses and lower profit. the real's weakening will help the company a lot on Vale's operational side. "In the third quarter.000 tonnes. though.03 billion from $12. Aug 7 (Reuters) . The result was below market expectations. Still. cost-cutting continues By Jeb B lount RIO DE JANEIRO.78 billion in foreign exchange losses on currency derivatives and debt. But most of its costs are in reais. the company's main accounting currency is the real and a weaker dollar means the local currency value of debt and debt payments will rise.28 billion average EBITDA expectation in the Reuters survey. fell.6 billion.63 percent to $2. No. The Rio de Janeiro-based company is the world's largest iron ore producer. 2 . those for nickel and copper. construction and other goods and services. slowed. which is the real source of value creation despite the opposite non-cash accounting impact on (bottom-line) profit. equipment. compared with analysts' average expectation of $11. while cost-cutting has limited declines in operating results and the bulk of the financial charges have no immediate cash impact. used to make steel resistant to rust. the operating results showed that after a decade of nearly constant growth the world metals and minerals market is getting tougher. Prices for those products." Luciano Siani. I don't think the investor will look at this because the immediate impact doesn't affect Vale. It was also below the $5.1 percent even as the price of iron ore . its main product. said in a taped message that was posted on the company's website after the results were announced." he added. it also helped Chief Executive Murilo Ferreira to cut $736 million from the cost of salaries. compared with a year earlier. showed some of their best production improvements in recent years. In the three months ending June 30. "Thanks to internal efforts to make the company more competitive. one of its worst bottomline results in a decade.9 percent to 65. depreciation and amortization (EBITDA) fell 10 percent to $4.INSIDE METALS August 8. "Thus the Brazilian real's depreciation generates positive effects on our cash-flow.6 billion in the yearago quarter. Vale said. The output of nickel. Vale said in a statement. While most revenue and debt is in dollars.96 billion from $5. Vale's chief financial officer. Earnings before interest. rose 6. and a major producer of copper and fertilizers. 2013 FEATURE Vale profit dives on FX charge. Vale said.Brazilian miner Vale SA said on Wednesday its second-quarter profit plunged after the company recorded a surprise $2.29 billion. Net sales fell 11. "underlying" secondquarter profit was $3. one-time. requiring it to take a financial charge. Nickel dropped an average 38 percent and copper 8. metals and mining analyst with Banco Itau-BBA in São Paulo.2 percent compared with a year ago. net income fell 84 percent to $424 million." the company said in a statement. financial charges that do not reflect its improved operational results. which gained an average 5. and China. When the non-cash losses are excluded. fell 12 percent. research.5 billion a year ago. "Profit came in below expectations but it's non-cash. compared with a profit of $2.5 percent to $11. noncash. Results were tight even as output of some of the company's least profitable mines.61 percent in the quarter against the Brazilian currency.47 billion a year ago.46 billion.
said. "As such. Three BSGR employees have been arrested . rather than recovery.by anti-corruption investigators. on the other hand. to win permits." Nava Toure. to develop the northern half of the deposit. the process of acquiring these titles is invalidated. China's trade performance has whipsawed this year after a government move to quash fictitious deals disguising illegal international cash transfers worsened data volatility. "China is able to reach an annual growth rate of 5 percent in trade. seen to be aligned with the Indonesian. known as Simandou. "Despite these attempts to seek constructive engagement. 3 . more than five times what analysts had forecast." China.INSIDE METALS August 8. the wife of former President Lansana Conte. it has said it would staunchly defend its lower limit on growth -.1 percent in July from a year ago. valuing the company at A$145 million.Intrepid Mines said it has failed to make any progress in talks to reclaim rights to a $5 billion copper and gold project in Indonesia. the committee would have the necessary elements to be able to request . Guinea could void BSGR mining permits if employees are convicted By Saliou Samb CONAKRY. the mining arm of Israeli billionaire Beny Steinmetz's business empire. Although Beijing has siganlled it would tolerate slower growth.9 percent from a year earlier. as it announced on Thursday that its chief executive had quit. Mr Soeryadjaya and his associates have not shown any real interest in reaching a commercial settlement. Shipments to southeast Asia. of China's exports and imports. Exports have been battered by weak demand in the United States and Europe as a lethargic global economy forces consumers in the West to tighten their belts. Aug 8 (Reuters) . Intrepid loses CEO amid stalemate over lost Indonesia gold mine MELBOURNE. the trade surplus of $17.estimated by some to be around 7 percent. head of a committee reviewing mining deals. we remain committed to using every legal remedy available to us to restore value for Intrepid shareholders. with the Australian dollar leaping a third of a cent." said Shen Jianguang. the company's representatives in Jakarta have met twice with Soeryadjaya and Intrepid's financial adviser has met with the other major investor in Tujuh Bukit. Aug 7 (Reuters) . who led Intrepid's investment in Tujuh Bukit and invested $100 million in proving up the resource before losing the project. beating economists' expectations for a 3 percent gain after June's 3. The committee was set up by the government to review the legality of mining permits granted under longtime ruler Conte and the military junta that seized power following his death in late 2008. Data from the Customs Administration showed exports rose 5." McMaster said. the world's largest exporter. Intrepid Chairman Ian McMaster said talks with Soeryadjaya and his associates have been rebuffed in the six weeks since shareholders rejected an attempt by a private equity fund. a cancellation of these titles.8 billion was lower than expected. "I would call it normalisation. In the meantime McMaster will serve as executive chairman. a charge the company has repeatedly rejected." The company is now looking for a new CEO to replace Brad Gordon.A stronger-than-expected rebound in China's exports in July offered hope that the world's secondlargest economy may be stabilising after a slowdown that has prompted the government to shore up activity. 2013 GENERAL NEWS China July exports up annual 5. to spill Intrepid's board. Gavin Caudle of Provident Capital. "That being the case. but economists said it was too early to say trade flows had turned a corner. have held up but their strength is not enough to offset weakness elsewhere. but the official 8 percent target is a bit hard to hit.1 percent fall. a senior official said.Guinea could void Israeli firm BSG Resources' (BSGR) mining permits if its employees who face charges linked to corruption investigations in the West African nation and the United States are convicted. Intrepid's shares last traded at A$0. which led some analysts to say crumbling trade growth was testing Beijing's appetite for slower but better-quality economic growth. is battling Guinea over the right to mine one of the world's largest untapped iron-ore deposits. down from more than A$1 billion in 2011.1 pct. But because imports jumped 10. The data immediately lifted financial markets. economist at Mizuho Securities Asia in Hong Kong. Since the vote in June. "If these allegations are confirmed either by our own hearings or the judicial proceedings under way in the United States." he told Reuters on Wednesday.one in the United States and two in Guinea . or titles.. China's economic cooldown is set to be its worst in over two decades. BSGR.26. imports surge BEIJING. The Guinean government alleges that BSGR bribed officials and Mamadie Toure. Intrepid was kicked off the Tujuh Bukit site a year ago after its Indonesian partners tranferred the leases for the project to a new company. suffered its first fall in exports in 17 months in June. Aug 8 (Reuters) . now controlled by Indonesian tycoon Edwin Soeryadjaya..
including the former vice president of the miner's Guinean unit. U. To help stem the bleeding. The 137-year-old institution. it put Pacific Aluminium in 2011 into a separate business.which houses five aluminium smelters. TRADING PLACES London Metal Exchange eyes3 CEO candidates -Bloomberg Aug 8 (Reuters) .The London Metal Exchange is considering three candidates to succeed Chief Executive Martin Abbott who is set to step down at the end of the year. closing or spinning off the business to shareholders. has been under Abbott's management since 2006. Net profit fell to $1. under which the company is partnered with Brazilian mining group Vale . Garry Jones. authorities in January began investigating potential illegal payments made to obtain mining concessions in Guinea and transfers of those payments into the United States. compared with analysts' consensus forecast of 84 cents. growing 8. Diarmuid O'Hegarty. is choosing between its chief operating officer. In April.S.5 billion in the first half of this year at its operations and in exploration spending. were arrested the same month in Guinea and charged with involvement in corruption. Rio's Australian-listed shares have fallen 10 percent this year. BSGR has accused the government of trying to use the process to confiscate its rights to Simandou. a French national named by Guinea's government as an "agent" for BSGR. tampering with a witness and destruction of records. Ibrahima Sory Toure. The LME. Aug 8 (Reuters) . exactly in line with analysts' forecasts. helped by demand for the metal as collateral for financing and the arrival of shipments from earlier orders. Underlying earnings fell to $4.S. which was bought last year for $2.China's copper imports rose for the third straight month in July.7 billion. 4 . unable to verify the third candidate. was charged in the United States with obstructing a criminal investigation. a potential oversupply of iron ore and its loss-making alumininum operations. but failed to find a buyer and decided not to pursue a spin-off to shareholders. Bloomberg said. Rio has been punished for its $38 billion takeover of Alcan ever since the ill-timed deal in 2007. Rio put Pacific Aluminium . The strong figure was a surprise to some traders who had expected fewer shipments due to weak seasonal demand in the domestic market.2 billion by Hong Kong Exchanges and Clearing .Global miner Rio Tinto said it has abandoned an attempt to hive off its loss-making Pacific Aluminium business. citing two people familiar with the matter. as it reported an 18 percent drop in firsthalf underlying earnings.1 percent to a 14month high. "Following a comprehensive review we have also determined that the divestment of Pacific Aluminium for value is not possible in the current environment and it will be reintegrated into the Rio Tinto Alcan group. Rio Tinto had considered selling. which analysts at Credit Suisse had valued at $2-$3 billion. and a former CEO of NYSE Liffe. Bloomberg reported. On its closely watched campaign to slash $5 billion in costs over two years." Chief Executive Sam Walsh said in a statement on Thursday. hit by weaker iron ore.9 billion and a $300 million write off due to damage from a massive landslide at its Bingham Canyon copper mine in the United States in April. racking up $30 billion in writedowns and booking losses in aluminium as demand slumped and Chinese output soared.23 billion in the six months to June from $5. copper and coal prices. Frederic Cilins. well below a 9 percent gain in the broader market on worries about slowing growth in China. The Foreign Corrupt Practices Act allows U. MARKET NEWS Rio Tinto to hang on to loss-making Pacific Aluminium MELBOURNE. officials to pursue bribery cases abroad. China July copper imports rise to 14-month high By Polly Yam HONG KONG. Two BSGR employees.5 cents. The London-based futures exchange could not immediately be reached for comment late on Wednesday. Aug 8 (Reuters) .15 billion a year earlier. a priority for examination. Rio Tinto said it had cut $1. a bauxite mine and alumina refinery in Australia and New Zealand . 2013 GENERAL NEWS (Continued) It has made BSGR's Simandou titles. It raised its dividend 15 percent to 83. Instead it will now bring Pacific Aluminium back into the fold of Rio Tinto Alcan. hit by a non-cash exchange loss of $1. the world's biggest marketplace for industrial metals such as copper and aluminium.INSIDE METALS August 8.on the block in 2011.
data from the General Administration of Customs showed on Thursday." said Judy Zhu.demand has clearly beaten everyone's expectations. the orders importers placed in June for spot refined copper should have arrived in July if the metal came from other Asian countries. Copper importers have found it easier to obtain letters of credit from banks in the past few weeks after lending was tightened in May. refined copper. Average daily crude steel output has remained at above 2." Chinese steel mills maintained strong run rates as their orderbooks improved. up 17 percent from a four-month low of 62.China's iron ore imports surged to a record high in July as domestic buyers replenished their inventories to meet surprisingly resilient steel demand during the summer. from about 380. "It's really big . China's July iron ore imports hit record high By Ruby Lian and David Stanway SHANGHAI/BEIJING. analyst at Minmetals Futures.shipments from Australia weren't actually that good and I would think it has something to do with the fact that the June number was low and there was some catch-up tonnage coming through. and the higher imports can't reflect the real market demand as some deliveries to bonded warehouses were driven by financing demand. traders said. The July inflow was up 12 percent from the same month in 2012. since the contracted spot shipments from South America should arrive. traders said. Reflecting a rise in imports for financing. boosting appetite for the raw material. "The steel market looks really healthy . stood at 410." said Train.94 million tonnes hit in December 2012.951 tonnes in June 2013. or prices. analyst with Macquarie in Shanghai. "Chinese steel mill margins have improved in July so they have ramped up production. The price of benchmark three-month copper contract on the London Metal Exchange rose one percent after the release of the Chinese data to $7.3 million tonnes in June. Copper arrivals fell 15. The stocks were still down 60 percent from a record of about one million tonnes in the first quarter. Traders expect iron ore shipments to China to remain high in August as mills made more bookings to meet stronger demand." a manager at a copper smelter said." said Judy Zhu. from the same months last year. 5 . Zhu expected the average iron ore prices to stand at $127 a tonne in the fourth quarter. Arrivals of anode.079 at 0121 GMT. Iron ore imports beat the previous record of 70. the data showed. since the bulk of contracted spot shipments are due to arrive between August and October." said Graeme Train.000 tonnes in early August. Copper tubes producers in China typically raise production to meet demand from air-conditioner makers in the second quarter and then cut production in the summer. said Zhang Ao. supporting demand for imports. analyst with Standard Chartered Bank in Shanghai. boosting appetite for iron ore and driving up spot prices of the raw material by 12 percent to above $130 a tonne last month. Aug 8 (Reuters) . "Physical demand for copper in July and August is seasonally weaker than June. the highest since May 2012 and up from 379. customs data showed on Thursday.9 percent to 2. "The consumption should improve in September. Copper imports are expected to stay strong this month. especially after export figures from Australia's Port Hedland showed a slight decline over the month. He added that imports were likely to rise further this month.000 tonnes in mid-July.1 million tonnes since April." Zhang said.413 million tonnes in the first seven months of 2013. said Train. stocks of refined copper in bonded warehouses in Shanghai rose to about 400. Imports of iron ore jumped to 73. up 9 percent from last year.150 per tonne from $7.INSIDE METALS August 8. But the data also reflected healthy underlying demand in the Chinese steel sector. While a slowdown in steel demand is expected in the second half. by far the world's biggest.680 tonnes in July. "Also. "The consensus is that there will be a slowdown in the second half but we are seeing steel destocking continuing so there are no obvious signs the market is out of balance at this stage. and any slowdown will be a lot more moderate than people expect. 2013 MARKET NEWS (Continued) High imports from the world's top consumer of copper could support prices in the international market. which have fallen about 10 percent so far this year. despite persistent complaints about oversupply and weak prices. it is unlikely to have a big impact on iron ore demand.14 million tonnes. alloy and semi-finished copper products. The July arrivals may have reflected higher imports of refined copper from India after the country's top copper smelter reopened in June. traders estimated. China's economic watchdog expects steel output to touch a record high of 780 million tonnes this year. Refined copper consumption in China has weakened in the past two to three weeks due to lower demand from copper tube producers. analyst at Standard Chartered. Analysts were surprised by the extent of the climb.
bringing the total shipments to 8. and the total exports stood at 35. Chinese steel exports eased back to 5. and the risk of a serious decline in iron ore prices is very limited at the moment.8 million tonnes.08 million tonnes in June.29 million tonnes in June. up 8 percent from a year ago. up 14 percent from the same period of last year.01 million tonnes for January-July.2 million tonnes for the first seven months of this year. 6 . almost steady from a year ago. Imports of steel products to China rose to 1. 2013 MARKET NEWS (Continued) "They will need to at least maintain those inventories and that swing in purchasing activity means that iron ore demand is actually a lot better than people are expecting.18 million tonnes from 1. data from the General Administration of Customs showed.15 million tonnes last month from 5.INSIDE METALS August 8." Total iron ore imports stood at 457.
2013 ANALYTIC CHARTS (Click on the charts for full-size image) Daily LME Aluminium 3-months Daily LME Copper 3-months Daily LME Nickel 3-months Daily LME Zinc 3-months Daily LME Lead 3-months Daily LME Tin 3-months Daily LME Alloy 3-months Daily LME Nasaac 3-months 7 .INSIDE METALS August 8.
The dollar slid to a seven-week low as uncertainty over when the Federal Reserve might begin reducing its stimulus weighed on prospects for bigger yield advantages. Other key Fed policy makers. "Investors are selling their long U.S.520 yuan ($8. The most-traded November copper contract on the Shanghai Futures Exchange climbed 3. A rebound in China's exports in July offered hope that the world's second-largest economy may be finding its feet after a slowdown that has prompted the government to shore up activity.64 an ounce by 0700 GMT. The dollar crumbled to seven-week lows on Thursday.S. with traders covering short positions in the precious metal.INSIDE METALS August 8. job market persists." HSBC analysts said. Traders said the short-covering in gold could push prices through the $1. dollar. dollar languished at seven-week lows. including Chicago Fed President Charles Evans and Dallas Fed President Richard Fisher. 8 .300-mark. China's imports of copper rose 8. Aug 8 (Reuters) . start of August. so we're still expecting a bit of near-term weakness. "Despite the pick-up in physical buying. while stronger-than-expected copper imports fanned earlier short-covering gains spurred by a weak dollar. Aug 8 (Reuters) .4 percent to $1." she said. having fallen to a three-week low early on Wednesday on fears of a stimulus wind down by the U. Gold has lost nearly a quarter of its value this year after strong economic data prompted talk the Fed could scale back its support for the economy. "Markets are near record shorts in copper so after positive news in China's trade data.500 a tonne. its highest since June 17 before edging back to $7. "Physical demand from the Far East continued to provide support for gold. Shanghai futures rose on Thursday after a two-day fall. downside risks to bullion persist as the nearterm momentum appears to be negative for gold. triggering off a volley of short-covering in metals.S. but that will depend how much surplus material is around." FOREX-Dollar hits 7-week low. Federal Reserve from next month.951 tonnes in the previous month. we could see copper prices finally break out from the recent trading range. and closing the year around $7. dollar and buying other currencies and gold. On demand. adding markets may well be preempting the expected seasonal fourthquarter recovery in demand.152 a tonne. according to China metals price provider Shmet. Gold is now up for a second straight session. while the Australian dollar jumped after strong July trade numbers from China. 2013 MARKET REVIEW METALS-Copper hits near 2-month high on upbeat China trade data By Melanie Burton SINGAPORE.S." said Matthew Wonnacott.330 in December. which is set to overtake India this year as the world's top gold consumer. gold rose about $6 to $1. China is going to be an attractive place to send material. a consultant with CRU in Beijing.Gold reversed early losses as the U. Ananthalakshmi SINGAPORE. "Scrap has been tight and you've got steady demand and quite a bit of surplus material has been locked up in LME warehouses. "We're in the seasonally slower months for demand. "The market has tightened up quite a bit over the end of July. Cleveland Fed President Sandra Pianalto said on Wednesday that the U.1 percent to 410. U." said Natalie Rampono at ANZ in Melbourne." Spot gold had gained 0.The dollar slid to a seven-week low as uncertainty over when the Federal Reserve might begin reducing its stimulus weighed on prospects for bigger yield advantages. The slide in gold prices earlier this week stirred up some buying interest in China. ANZ sees prices averaging $7. traders said. Australia's main export market. around the highest in four years.60.291. but I don't think it will be sustained. Aug 8 (Reuters) ." Premiums for copper in bond rose to $210 on Thursday from $205 on Wednesday.292.S.London copper hit its highest in nearly two months after trade data suggested China's economy is stabilising.127 a tonne as of 0407 GMT.400) a tonne. PRECIOUS-Gold gains for second day as dollar weakens By A.S. Aussie jumps on China data By Hideyuki Sano TOKYO. As long as the premiums stay high.S central bank could begin reducing the pace of its bond-buying stimulus if recent improvement in the U.1 percent to 51. depending on economic data. "The buying today is due to short covering since not much is happening to strengthen the U. said earlier this week that stimulus could be cut as early as September.680 tonnes in July from 379." said a Sydney-based precious metals trader. data from the General Administration of Customs showed. Three-month copper on the London Metal Exchange rallied to $7.
After the bank's report.S. (Inside Metals is compiled by Pradip Kakoti in Bangalore) For questions and comments on Inside Metals click here Your subscription: To find out more and register for our free commodities newsletters.09073 . now at around 81. raising doubts over whether this was just a fleeting correction in a long-term uptrend. Although the euro came back above the cloud bottom. What people are doing at the moment is to adjust their positions based on policymakers' comments and data.05.165 per dollar . click here Send us a sales enquiry.5534 and it last stood at $1.167. use and share your personal information please read our privacy statement here To unsubscribe to this newsletter click here For more information: Learn more about our products and services for commodities professionals. "I wish there's clearer message from the Fed. Thomson Reuters shall not be liable for any errors or delays in content.5 percent sooner than they had been betting. click here Privacy statement: To find out more about how we may collect. click here Contact your local Thomson Reuters office.5205 on the news.S. Any copying. central bank could soon begin reducing the pace of its bond-buying stimulus if recent improvement in the U.67 on Thursday. 2013 MARKET REVIEW (Continued) Although the U. or for any actions taken in reliance thereon. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world. But he also introduced what analysts called "knockout clauses".34 yen and from one technical perspective. job market persists. dollar had hit a three-year high last month as investors had bet the Fed would be well ahead of other central banks in scaling back its easy money strategy. easing worries about a slowdown in Asia's economic powerhouse.INSIDE METALS August 8. the currency pair seems to be on a shaky ground after it closed below the Ichimoku cloud bottom on Wednesday. connecting its lows in January and June. overnight indexed swaps priced in a 90 percent chance of a rate hike in three years' time. The yen also reached a seven-week peak of 96. The Australian dollar gained after China's exports and imports both beat market expectations. BoE Governor Mark Carney said on Wednesday future interest rate rises in the UK would not happen until unemployment fell to 7 percent. Sterling also broke higher against the dollar as investors brought forward expectations of when the Bank of England will raise rates after a news conference by the central bank's head. another break below that support should send the strongest bearish signal for the pair in more than a year. said that the U. The Aussie rose 0. The dollar index dropped to 81. at 128. This content is the intellectual property of Thomson Reuters and its affiliates. prompting some investors to price in the risk of a rise from the current 0.9 percent to $. click here © 2013 Thomson Reuters. the president of the Cleveland Fed. distribution or redistribution of this content is expressly prohibited without the prior written consent of Thomson Reuters. A break of its channel support. Sandra Pianalto. and some chance of a hike as early as 2015.3353 as the common currency also benefited from data showing German industry output surged at its fastest pace in nearly two years. The pound first fell as far as $1. inconclusive economic data and mixed comments from the Fed in recent weeks have raised doubts over the timing. something seen as unlikely for at least three years. All rights reserved. 9 . recovering from declines suffered after the earlier release of poor Australian employment data." said a trader at a Japanese trading firm. The euro rose to a seven-week high of $1. bringing its losses to 4 percent in just a month.5496 . saying the BoE would consider raising rates if there are threats of inflation or financial instability. could jeopardise the gradual uptrend seen so far this year. On Wednesday." he added. seen as a centrist on policy. "The market has been driven by speculation about tapering. It seems as if the Fed is trying to pass the ball but no one can catch it.S. according to technical analysts. The euro also dropped to one-month low of 128. The yen showed no immediate reaction after the Bank of Japan kept its policy on hold as expected. only to rebound to a seven-week high of $1.
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