• European session: the euro continues to strengthen

Market news

23 August 2012

European session: the euro continues to strengthen

Data

02:30 China HSBC Manufacturing PMI(preliminary) August 49.3 47.8

06:00 Switzerland Trade Balance July 2.25 2.10 2.91

06:00 Germany GDP (QoQ) (finally) Quarter II +0.5% +0.3% +0.5%

06:00 Germany GDP (wda) (YoY) (finally) Quarter II +1.2% +0.5% +1.0%

07:00 France Manufacturing PMI (preliminary) August 43.4 43.8 46.1

07:00 France Services PMI (preliminary) August 50.0 50.1 50.2

07:30 Germany Manufacturing PMI (preliminary) August 43.0 43.6 45.1

07:30 Germany Services PMI (preliminary) August 50.3 50.2 48.3

08:00 Eurozone Manufacturing PMI (preliminary) August 44.0 44.3 45.3

08:00 Eurozone Services PMI (preliminary) August 47.9 47.9 47.5

08:30 United Kingdom BBA Mortgage Approvals July 26.3 28.2 28.4

10:00 United Kingdom CBI retail sales volume balance August 11 16 -3


The euro rose to a seven-week high against the dollar, with increased expectations that the U.S. and China ease monetary policy to stimulate economic growth, which will increase the demand for higher-yielding assets.

The U.S. currency fell after the minutes of the last meeting of the Federal Open Market Committee showed many politicians in favor of additional measures to support the economy. The third round of asset purchases will provide confidence in the markets, which must be sufficiently adaptive for quite some time.

The pound fell after the published data showed that the number of approved applications for mortgage loans as BBA unexpectedly rose in July.

The New Zealand dollar strengthened against all but one of the major currencies due to the appreciation of Asian stocks. Rates also rose to two-week high after the head of the Federal Reserve Bank of Chicago Charles Evans said that the promotion of monetary policy is to support the growth of the world economy.

The representative of the People's Bank of China Governor Zhou Xiaochuan said yesterday that the adjustment of interest rates and banks' reserve requirements still possible, after the central bank stepped up temporary cash infusions this month.

The Australian dollar strengthened after a report showed that China's manufacturing sector in August showed the fastest rates of decline over the last nine months, increasing the concern that the demand for commodity exports will decline.

The dollar index, which tracks the greenback against six major currencies, fell today by 0.3% to 81.284, which is a minimum of 20 June.


EUR/USD: in the course of trade, the pair grew up, setting all-time high at $ 1.2573, then dropped slightly and is now trading at a value of $ 1.2550

GBP/USD: a pair of sharply peaked at $ 1.5910, then dropped to and now stands at $ 1.5865

USD/JPY: the course in mid-session trading in a narrow range after yesterday's substantial reduction


The main U.S. data will be: traditional statistics on applications for unemployment benefits (12:30 GMT) and the data on the volume of sales in the primary market (14:00 GMT), which will be released simultaneously with the index of house prices.

Later statistics attract attention on the trade balance of New Zealand (22:45 GMT) and the speech of the RBA (23:30 GMT).

Day complete data on the price index for services among Japanese corporations (23:50 GMT).

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