- European session: the euro fell
Market news
European session: the euro fell
Data
06:45 France Trade Balance, bln August -4.3 -4.9 -5.3
07:30 Eurozone ECB President Mario Draghi Speaks -
08:00 Eurozone ECOFIN Meetings -
08:30 United Kingdom Industrial Production (MoM) August +2.9% -0.5% -0.5%
08:30 United Kingdom Industrial Production (YoY) August -0.8% -1.1% -1.2%
08:30 United Kingdom Manufacturing Production (MoM) August +3.2% -0.6% -1.1%
08:30 United Kingdom Manufacturing Production (YoY) August -0.5% -0.6% -1.2%
08:30 United Kingdom Trade in goods August -7.1 -8.3 -9.8
The euro dropped against the dollar and yen, reversing earlier gains, as European Central Bank President Mario Draghi said the common-currency region faces risks from financial instability.
ECB President Draghi, in his speech presented the European Systemic Risk Board, which must ensure the support of macro economy. He reiterated the need for financial reforms and noted that the proposal for a bank union welcomed by the Council, which should give investors confidence in the quality of bank assets. Surveillance will help to restore confidence in the financial system. Earlier, Spain's Finance Minister said that the Eurogroup endorsed the recently announced government measures, but did not discuss further changes.
The euro slid against all but two of 16 major peers tracked by Bloomberg after the International Monetary Fund also said the region’s economy will shrink this year more than previously forecast. In addition, the IMF has revised a fall forecast global growth to 3.6% in 2013 (from 3.9%), stating as a reason for "substantially increased" the risk of a more serious decline than expected.The British pound fell after the British industrial production fell more than expected. Output in the manufacturing sector of the United Kingdom in August fell more than expected, as the periods of the summer plant closures for maintenance contributed to the fall production of transport equipment. Production registered a decline of 1.1% against 3.1% in July.
In addition, the rate of the UK trade deficit in August registered a sharp increase. The total deficit of 4.169 billion from 1.705 billion in July, while the trade deficit rose to 9.844 billion from 7.337 billion the July Both values exceeded the forecasts of most analysts.
EUR / USD: the pair dropped to $ 1.2906 and then recovered to $ 1.2956
GBP / USD: the pair decreased to $ 1.5999 and then recovered to $ 1.6040
USD / JPY: the pair dropped to the level of Y78.19
At 12:15 GMT, Canada will release a number of new foundations of bookmarks for September. At 14:00 GMT the UK there are data on the volume change of the NIESR GDP in September. At 23:30 GMT Australia is to publish an index of consumer confidence from Westpac in October.
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