• American focus: the dollar rose against the euro

Market news

29 July 2014

American focus: the dollar rose against the euro

The dollar rose modestly against the euro, reaching maximum values ​​at the same time from 20 November 2013. Market participants expect more details on sanctions against Russia. EU Council at the level of Permanent Representatives of 28 countries agreed community today at a meeting in Brussels on economic sanctions against Russia. Reported by the Reuters news agency quoted a diplomatic source. In this companion Reuters added that economic sanctions against Russia in the EU will be reviewed after three months. Bloomberg agency agreement also confirms new sanctions against Russia. According to the agency, the list includes new sanctions restricting access Russian state banks to capital markets, the ban on exports to the Russian equipment for oil embargo on future arms sales to Russia, as well as restrictions on the supply of dual-use equipment.

Little support was U.S. data that showed in July index of consumer confidence in the U.S. jumped to 90.9 points, which was the maximum value of the index since October 2007. This was reported by a research organization Conference Board, which calculates this indicator. However, the indicator value for June was revised from 85.2 points to 86.4 points. Analysts had expected the index to increase to 85.5 points from the previously specified level. Indicator of the attitude of U.S. consumers to the current financial situation in July rose to 88.3 points compared with 86.3 in the previous month. The index of consumer expectations for the next six months jumped to 92.7 points from 86.4 points.

The British pound weakened against the dollar after an early growth data on mortgage loans. Number of mortgage approvals in the UK rose more than expected in June to its highest level since February of last year, data showed on Tuesday the Bank of England. Approved applications for house purchase increased to 67 196, 4-month high of 62,007 in May. Predicted moderate growth to 63000. Loans to individuals increased by 2.5 billion pounds. In total, loans secured by housing increased by 2.1 billion pounds in June, compared with a rise of 2.3 billion pounds in May. On an annual basis, secured loans rose 1.5 percent.

Consumer loans grew by only 0.4 billion pounds, after rising by 0.7 billion pounds. Annual growth remained unchanged at 5.3 percent. M4 money supply rose 0.1 percent in June from May. On an annual basis M4 decreased by 0.6 percent compared with 0.8 percent drop in May.

The yen depreciated markedly against the dollar, reaching a three-week low at the same time. Demand for the dollar is still maintained before the release of preliminary data on U.S. economic growth in the second quarter and the statement of the Federal Reserve's rate. Investors also expect the employment report for July on Friday. Earlier this month, the Federal Reserve Janet Yellen noted that U.S. interest rates may rise sooner if the recovery in the labor market will continue.

Market Focus
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