• European session review: the pound continues to recover after the collapse

Market news

29 June 2016

European session review: the pound continues to recover after the collapse

The following data was published:

(Time / country / index / period / previous value / forecast)

1:00 Australia Sales of new buildings, m / m in May -4.7% -4.4%

6:00 UK House Price Index from Nationwide, m / m in June 0.2% 0% 0.2%

6:00 UK House Price Index from Nationwide, y / y in June 4.7% 4.9% 5.1%

6:00 Germany consumer confidence index from the GfK July 9.8 9.8 10.1

6:00 Switzerland indicator of consumer activity from May 1.24 1.35 UBS

8:30 Volume UK net lending to individuals, 1.6 billion in May 4.3

8:30 UK Changing the volume of consumer lending, million 1400 1503 May 1294

8:30 UK approved applications for mortgage loans, th. May 66.21 65.25 67.04

9:00 Eurozone index of sentiment in the economy in June 104.6 104.7 104.4

9:00 Eurozone consumer confidence index (final data) June -7 -7 -7.3

9:00 Eurozone Sentiment Index in the business community June 0.26 0.26 0.22

9:00 Eurozone business confidence index in industry in June -3.7 -3 -2.8

12:00 Germany Consumer Price Index m / m (preliminary data) June 0.3% 0.2% 0.1%

12:00 Germany Consumer Price Index y / y (preliminary data) June 0.1% 0.3% 0.3%


The euro rose slightly against the dollar, returning to yesterday's high, which was associated with the expectations of US reports, including personal income and expenses, and home sales. Investors also continue to follow the news from the EU summit, during which politicians discuss Britain's decision to leave the EU. Market analysts believe that European leaders will expect to see negative economic data, before taking measures against the consequences of the referendum.


he results of the research, published by the European Commission showed that economic confidence in the euro area fell in June, contrary to expectations of a slight increase. According to the data, the index of economic sentiment, which is a gauge of consumer and business confidence fell in June to 104.4 points from 104.6 points in May (revised from 104.7 points). In addition, it was announced that the final index of sentiment among consumers dropped in June from -7.0 points to -7.3 points, confirming the initial assessment, but exceeded the experts' forecasts (-7.0 points).

Sentiment in the services sector fell to 10.8 from 11.3 in May, but the index of business optimism in industry rose to -2.8 from -3.7. It was expected that the confidence in industry improved to -3.0. The index of sentiment in the business circles dropped to 0.22 from 0.26 in May. Analysts predicted that the rate will remain unchanged.


The pound rose moderately against the dollar, helped by renewed risk appetite, as well as statistics on Britain. The Bank of England said that the volume of consumer credit has increased significantly in May, recording the fastest pace since 2005. According to the data, in May, the number of approved applications for mortgage loans rose to 67 042 compared to 66 205 in April (revised from 66,250).

Analysts had forecast a contraction of approved applications to 65 250. In the meantime, consumer loans increased in May by 9.9 percent in annual terms (up to 1.503 billion gbp), showing the biggest gain since November 2005. Economists had expected a rise to 1.4 billion gbp.

Net mortgage lending rose in May to 2.824 billion pounds, which was more than forecast (2.2 billion). Consumer credit rose by 1.503 billion gbp. Lending to non-financial enterprises increased by 2.814 bn. pounds after falling 176 million n April.

Also today, Fitch revised the outlook on the reduction of Britain's GDP, adding that it may encourage the Central Bank to lower the rate to 0.25% by the end of the year.


EUR / USD: during the European session rose to $ 1.1102


GBP / USD: rose to $ 1.3453


USD / JPY: rose from Y102.14 to Y102.75

Market Focus
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer
Open Demo Account & Personal Page
I understand and accept the Privacy Policy and agree to my name and contact details being used by TeleTrade to contact me about this.