• American focus : the Japanese yen has weakened against the dollar

Market news

30 September 2013

American focus : the Japanese yen has weakened against the dollar

The dollar / yen retreated from month low of nearly 100 points during the U.S. session on news that the U.S. Senate that Republicans discussing the adoption of a temporary funding bill that will win more time for negotiations and to avoid interruption of the government.

The debt ceiling is not a constraint for future spending, instead limiting the funding of current liabilities . So , the Republicans are trying to tie the debt ceiling increase to a reduction in federal spending - including a one-year stay of execution of the law of affordable medical care. On the other hand the Democrats wish to defend the charges , especially the program Obamacare, the Republicans in calling for a reduction . In the case of the suspension of the government's delay may occur publication of government reports, including data on employment and retail sales of NFP .

The euro edged higher against the U.S. dollar despite the political tensions in Italy against the background of some improvement of risk sentiment. Talk about the fact that the Italian senators from PdL party could support the Prime Minister Enrico Letta , circulated today among the players , which positively affects the dynamics of the euro. Today , Fitch issued a statement on the situation in Italy , warning that if a vote on Wednesday the government Enrico Letta not receive a vote of confidence , might be jeopardized financial goals of the country.

" Prolonged uncertainty about the economic and financial policy has undermined confidence in the fact that the ratio of government debt / GDP will contract in 2014 , and the country's inability to meet the requirements of a balanced budget could jeopardize Italy's rating at 'BBB +' with a negative outlook ," - says Fitch. In the case of a collapse of the coalition government in Italy , where the country will lose the opportunity to fulfill the requirements under the European Pact on Stability and Growth Pact , EU support in the form of ESM or the OMT will be severely limited .

Previously, some support the pound was able to provide a report that showed that on the basis of last month, the number of mortgage approvals has increased markedly , reaching thus the highest level in more than five years. According to the report , the creditors were granted 62,226 mortgages , which was the highest since February 2008 . Note also that the figure for July was revised upward to the level of 60,914 with an average 60.6 million According to experts the value of this index was to rise to the level of 61.5 thousand net mortgage lending rose to 974 million pounds ( $ 1.6 billion ) in August, and consumer loans increased to 577 million pounds. Meanwhile , today's data also showed that in August of business lending fell to 3.8 billion pounds, or drop more than three times the average decline in the last six months. Add , compared with a year earlier loans declined by 3.6 percent. The volume of loans to small and medium-sized companies fell by 3.2 percent compared to last year.

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