• American focus: the euro is trading restrained

Market news

22 August 2012

American focus: the euro is trading restrained

The dollar strengthened against the euro on speculation that the Federal Reserve will take steps to boost economic growth, although recent reports suggest that the economy is gaining momentum.

The dollar showed growth against the yen after Japan reported that the trade deficit in July rose more than expected.

We also learned that the U.S. central bank is considering various ways to buy bonds for further easing, as investors fading expectations of further stimulus.

The pound rose against the euro ahead of the report this week, which will be able to show that the UK economy fell by less than previously estimated in

second quarter. Sterling strengthened against most of its 16 major counterparts. Yesterday it fell to its lowest level in two weeks against the euro.

The euro rose, after Greek Prime Minister Antonis Samaras said in Athens that his government deliberately meet the objectives of saving and help to combat the sovereign debt crisis.

Also influenced the growth of the published data on the level of sales in the secondary market, which increased compared to the previous month, but were below analysts' expectations.

The Australian dollar fell, as the decline in stock markets eroded demand for higher-yielding assets.

The dollar index, which tracks the greenback against six major currencies, was 81.910, after rising to 82.121.

Now market participants are awaiting publication of the minutes of the meeting FOMC, which may shed light on the possibility of further quantitative easing.

Market Focus
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