The euro rose to a two-month high against the yen after European Central Bank President Mario Draghi announced the decision of the central bank to launch a new program of redemption of bonds, potentially unlimited in volume to "unload" the tense situation on the debt market. Thus, the head of the European monetary authorities do not back down from its July promise to take all necessary measures to save the euro. ECB's key interest rate was in line with expectations remain the same.

More positive than expected ISM report on the non-manufacturing sector came after an equally positive data on the labor market, and together, these data supported the U.S. dollar against the Japanese yen against decrease the potential for additional Fed easing. Positive U.S. data also came out against the background of Japanese authorities for further easing measures to help the Japanese economy.

The British pound rose against the dollar after the Bank of England today decided to keep unchanged the interest rate and scale asset purchase program. The Monetary Policy Committee of the Bank of England left interest rates at 0.5%, and the size of asset purchase program - at 375 billion pounds, which was in line with the forecasts of most analysts.

The Australian dollar advanced after a government report showed that the unemployment rate unexpectedly fell in August.

EUR/USD $1.2500, $1.2525, $1.2550, $1.2625, $1.2635

USD/JPY Y78.50, Y78.70

EUR/JPY Y98.60

GBP/USD $1.5865, $1.5900, $1.5925

EUR/GBP stg0.7865, stg0.7935, stg0.7950

USD/CHF Chf0.9600

AUD/USD $1.0150, $1.0200, $1.0220, $1.0300, $1.0350

USD/CAD C$0.9900, C$0.9925

• ECB's requirements for

• Aid funds must be prepared to act on the bond markets

• The authorities should continue structural reforms with determination

• ECB adheres mandate to protect price stability

• euro is irreversible

• Direct monetary operations will better support

• Buy bonds to help reduce severe strain on the government bond market

• We must be able to protect the transmission mechanism of monetary policy

• The ECB plans to start a "direct monetary operations"

• Dalneshaya tensions in the financial markets may be the downside risks to growth and inflation

• The tension on the financial markets and increased uncertainty have a negative impact on sentiment

• Economic growth in the euro area remains weak

• Inflation expectations remain subdued

• The basic rate of monetary growth remains subdued

• Inflation is expected to remain above 2% in 2012

Data
01:30 Australia Unemployment rate August 5.2% 5.3% 5.1%
01:30 Australia Changing the number of employed August 14.0 5.1 -8.8
03:40 Japan BOJ Governor Shirakawa Speaks -
07:00 United Kingdom Halifax house price index August -0.6% +0.3% -0.4%
07:00 United Kingdom Halifax house price index 3m Y/Y August -0.6% -0.8% -0.9%
09:00 Eurozone GDP (QoQ) (revised) Quarter II -0.2% -0.2% -0.2%
09:00 Eurozone GDP (YoY) (revised) Quarter II -0.4% -0.4% -0.5%
09:00 Eurozone Household Consumption (QoQ) Quarter II 0.0% -0.2% -0.2%
10:00 Germany Factory Orders s.a. (MoM) July -1.6% +0.3% +0.5%
10:00 Germany Factory Orders n.s.a. (YoY) July -7.8% -4.5% -4.5%
11:00 United Kingdom Asset Purchase Facility - 375 375 375
11:00 United Kingdom BoE Interest Rate Decision - 0.50% 0.50% 0.50%
11:00 United Kingdom MPC Rate Statement -
11:45 Eurozone ECB Interest Rate Decision - 0.75% 0.50%

During the day, the euro close to a two-month high against the dollar on speculation the European Central Bank will announce today details of its program to buy bonds. But after the ECB left rates unchanged euro reached a new two-month high.
The single currency rose to its highest level in more than two weeks against the yen after the central bank officials said that ECB President Mario Draghi will present the plan.
The Australian dollar advanced after a government report showed that the unemployment rate unexpectedly fell in August. Under the plan, the ECB, which could be called a "currency transaction Duel", the central bank will refrain from establishing fixed income, the amount of purchases will be unlimited, and the ECB will consider the sale of bonds, if the conditions are not satisfied and the ECB will buy short-term bonds ( up to three years). This plan will focus only on government bonds, rather than a wide range of assets
Pound little changed after the Bank of England left its key interest rate at a record low of 0.5% and maintained its asset purchase program at 375 billion pounds.
The Bank of England has cut economic forecasts last month, while the Organization for Economic Cooperation Development lowered its forecast today.

EUR/USD: during the European session, the pair showed steady growth, while setting a new high at $ 1.2650
GBP/USD: the pair grown, reaching $ 1.5925
USD/JPY: the pair was trading in a narrow range

At 12:15 GMT the United States will change in the number of employees from ADP. At 12:30 GMT will be the monthly press conference of the ECB. U.S. at 12:30 GMT will publish the number of initial claims for unemployment insurance, the number of repeated applications for unemployment benefits, at 14:00 GMT ISM composite index for the non-production sphere for August at 15:00 GMT and are data on stocks of crude oil from Department of Energy.

USD/JPY

Offers Y79.00, Y78.90, Y78.80, Y78.60, Y78.50/55

Bids Y78.20/15, Y77.80

EUR/GBP

Offers stg0.8015/20, stg0.8000, stg0.7955

Bids stg0.7885/80, stg0.7875/70, stg0.7860/50, stg0.7810/00

EUR/USD $1.2500, $1.2525, $1.2550, $1.2625, $1.2635

USD/JPY Y78.50, Y78.70

EUR/JPY Y98.60

GBP/USD $1.5865, $1.5900, $1.5925

EUR/GBP stg0.7865, stg0.7935, stg0.7950

USD/CHF Chf0.9600

AUD/USD $1.0150, $1.0200, $1.0220, $1.0300, $1.0350

USD/CAD C$0.9900, C$0.9925

01:30 Australia Unemployment rate August 5.2% 5.3% 5.1%

01:30 Australia Changing the number of employed August 14.0 5.1 -8.8

03:40 Japan BOJ Governor Shirakawa Speaks

Yesterday the euro rose against most of its 16 major peers after two central bank officials said European Central Bank President Mario Draghi will announce unlimited sterilized bond buying to quell the region’s debt crisis.

The 17-nation currency climbed to a two-month high against the dollar last week amid optimism Draghi would announce additional monetary stimulus at ECB meeting.

Under the ECB blueprint, which may be called “Monetary Outright Transactions,” the ECB would refrain from setting a public cap on yields, according to the central bankers, and a third official, who spoke on condition of anonymity. The plan will only focus on government bonds rather than a broader range of assets and will target short-dated maturities of up to about three years, two of the people said.

German Chancellor Angela Merkel told lawmakers she can accept temporary ECB bond buying, according to a member of her party. German legislator Norbert Barthle said in Berlin that Merkel spoke in a closed-door meeting of Christian Democratic Union lawmakers.

Germany’s Constitutional Court is set to rule on the legality of the European Stability Mechanism, the euro region’s permanent bailout fund, on Sept. 12. The ECB may delay giving full details of Draghi’s bond-buying plan until after the ruling, two central bank officials said on Aug. 24.

Australia’s currency dropped to a seven-week low after the economy expanded less than forecast.

•  

  BOJ chief repeats high yen has more costs than benefit at this stage

   

• Japan govt has intervened on yen at best possible timings

• BOJ chief repeats foreign bond buys equal to fx intervention

• fiscal reform plans must come with action

• Japan's pro-growth efforts not enough yet

• Japan tends to underestimate its growth potential

•  

  BOJ chief repeats high yen has more costs than benefit at this stage

   

• Japan govt has intervened on yen at best possible timings

• BOJ chief repeats foreign bond buys equal to fx intervention

• fiscal reform plans must come with action

• Japan's pro-growth efforts not enough yet

• Japan tends to underestimate its growth potential

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,2602 +0,29%

GBP/USD $1,5901 +0,18%

USD/CHF Chf0,9555 -0,01%

USD/JPY Y78,39 -0,05%

EUR/JPY Y98,82 +0,26%

GBP/JPY Y124,65 +0,14%

AUD/USD $1,0192 -0,30%

NZD/USD $0,7953 +0,10%

01:30 Australia Unemployment rate August 5.2% 5.3% 5.1%

01:30 Australia Changing the number of employed August 14.0 5.1 -8.8

03:40 Japan BOJ Governor Shirakawa Speaks -

07:00 United Kingdom Halifax house price index August -0.6% +0.3%

07:00 United Kingdom Halifax house price index 3m Y/Y August -0.6% -0.8%

09:00 Eurozone GDP (QoQ) (revised) Quarter II -0.2% -0.2%

09:00 Eurozone GDP (YoY) (revised) Quarter II -0.4% -0.4%

09:00 Eurozone Household Consumption (QoQ) Quarter II 0.0% -0.2%

10:00 Germany Factory Orders s.a. (MoM) July -1.7% +0.3%

10:00 Germany Factory Orders n.s.a. (YoY) July -7.8% -4.5%

11:00 United Kingdom Asset Purchase Facility - 375 375

11:00 United Kingdom BoE Interest Rate Decision - 0.50% 0.50%

11:00 United Kingdom MPC Rate Statement -

11:45 Eurozone Economic sentiment index - 0.75% 0.50%

12:15 U.S. ADP Employment Report August 163 141

12:30 Eurozone ECB Press Conference -

12:30 U.S. Initial Jobless Claims - 374 369

14:00 U.S. ISM Non-Manufacturing August 52.6 52.6