• European session: the dollar traded upward

Market news

19 October 2012

European session: the dollar traded upward

Data

04:30 Japan All Industry Activity Index, m/m August -0.6% +0.2% +0.1%

06:00 Germany Producer Price Index (MoM) September +0.5% +0.3% +0.3%

06:00 Germany Producer Price Index (MoM) September +1.6% +1.6% +1.7%

06:35 Japan BOJ Governor Shirakawa Speaks -

08:00 Eurozone Current account, adjusted, bln August 8.8 11.3 8.8

08:00 Eurozone EU Economic Summit -

08:30 United Kingdom PSNB, bln September 12.4 11.8 12.8

 

The euro fell for a second day against the dollar on speculation the European Union summit this week in Brussels will be unable to provide clarity on the potential financial assistance for Spain.

The single currency fell for the first time in seven days against the yen after the Spanish Prime Minister Mariano Rajoy said that his country does not feel any pressure to go for help. Rajoy said at an EU summit in Brussels that has made "significant progress" and showed the EU that will meet their obligations. He also said that his government will decide on the assistance based on the interests of Spain.

The pound rose for the first time in four days against the euro after a report showed that the UK's budget deficit reached the lowest level since 2008.

Sterling may show a fourth weekly decline against the dollar, which would be the longest strip of losses over the past four months. Note that today the Bank of England, David Miles said that the UK economy is not recovering as he had hoped. At the same time, the yield on 10-year bonds reached 1.96% mark yesterday, which is the highest value for the month.

It is learned from the Office for National Statistics, the UK deficit without state support for banks has narrowed to 12.8 billion pounds from 13.5 billion pounds a year earlier.

The yen rose after French President Francois Hollande said that the leaders at the meeting did not discuss the allocation of EU aid for Spain, stimulating demand for safe assets.

EUR/USD: during the session, the pair is trading at c decrease the minimum values ​​at $ 1.3040

GBP/USD: a pair of sharply increased from the minimum values ​​session, setting all-time high of $ 1.6067, followed by a rapid fall in the currency which is close to its lowest level of the day

USD/JPY: currency in today's trading decreased by setting minimum at Y79.13, then rebounded slightly

 

At 12:30 GMT, Canada will release the consumer price index and the core consumer price index from the Bank of Canada in September. Finish the day at 14:00 GMT U.S. data on the volume of sales in the secondary market in September.


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