The Dollar Index fell to a more than three-month low after Federal Reserve Chairman Ben S. Bernanke said he wouldn’t rule out further bond purchases to boost growth and reduce unemployment, which he called a “grave concern.”

The currency fell against all but one of its 16 most-traded peers after Bernanke told central bankers and economists at an annual forum in Jackson Hole, Wyoming, that “nontraditional policies” shouldn’t be ruled out if economic conditions warrant. The dollar also weakened as reports showed business activity in the U.S. expanded more slowly this month and demand for U.S. capital goods dropped in July.

The pound is set for a monthly gain versus the greenback as a report showed U.K. house prices rose in August, easing concern that the recession is worsening.

The weakness in the labor market is "serious concern" at the Fed

The economic situation is "far from satisfactory"

Downside risks from the incentives "manageable"

I do not exclude non-traditional options for further stimulus

I doubt that the structural changes are responsible for the high unemployment

To reduce unemployment, economic growth requires a better

Little evidence, that may contribute to financial imbalances

Inflation expectations are stable, despite the large Fed balance

Fed buying bonds does not harm the work of the bond market

The first and second quantitative easing prompted an increase of 3%, added 2 million jobs

Fed bond purchases can still help the economy

Fed bond purchases so far helped the economy

Improvement in the labor market "painfully slow"

Inflation is close to 2%, the target Fed

• The weakness in the labor market is "serious concern" at the Fed

• The economic situation is "far from satisfactory"

• Downside risks from the incentives "manageable"

• I do not exclude non-traditional options for further stimulus

• I doubt that the structural changes are responsible for the high unemployment

• To reduce unemployment, economic growth requires a better

• Little evidence, that may contribute to financial imbalances

• Inflation expectations are stable, despite the large Fed balance

• Fed buying bonds does not harm the work of the bond market

• The first and second quantitative easing prompted an increase of 3%, added 2 million jobs

• Fed bond purchases can still help the economy

• Fed bond purchases so far helped the economy

• Improvement in the labor market "painfully slow"

• Inflation is close to 2%, the target Fed

EUR/USD $1.2400, $1.2500, $1.2540, $1.2550, $1.2580, $1.2600

USD/JPY Y78.40, Y78.50, Y79.20, Y79.30

GBP/USD $1.5690, $1.5800, $1.5845

USD/CHF Chf0.9600, Chf0.9500

• ECB must "fully" to limit bond yields

• There is room for additional fiscal stimulus in the U.S.

• It is premature to judge the success of the financing for lending

• The Fed is interested in receiving information on the funding scheme for lending in the UK

• Limitation of bond yields can restore market confidence

• ECB may act to mitigate the debt problems in Spain and Italy

Data
01:30 Australia Private Sector Credit, m/m July +0.3% +0.4% +0.2%
01:30 Australia Private Sector Credit, y/y July +4.4% +4.4% +4.2%
05:00 Japan Construction Orders, y/y July +4.6% +8.0% +8.0%
05:00 Japan Housing Starts, y/y July -0.2% -10.0% -9.6%
06:00 United Kingdom Nationwide house price index August -0.7% +0.2% +1.3%
06:00 United Kingdom Nationwide house price index, y/y August -2.6% -2.2% -0.7%
06:00 Germany Retail sales, real adjusted July -0.1% +0.2% -0.9%
06:00 Germany Retail sales, real adjusted July +2.9% +0.1% -1.0%
09:00 Eurozone Harmonized CPI, Y/Y (preliminary) August +2.4% +2.5% +2.6%
09:00 Eurozone Unemployment Rate July 11.2% 11.3% 11.3%

The dollar fell to eight-week low against the euro in the run-up speech by Federal Reserve Chairman Ben Bernanke on the central bank symposium in Jackson Hole, where he will present his annual speech on monetary policy.
The U.S. currency weakened against all of its 16 major counterparts after the Atlanta Fed President Dennis Lockhart said the central bank is serious about conducting further stimulate the economy.
The dollar index (DXY), which tracks the greenback against six major currencies, was down by 0.5% to 81.296, and fell by 1.6% for the month.
The U.S. currency also weakened against the fact that market participants expect a report on factory orders, which are expected to rise in July.
Also today it was announced that the unemployment rate in the euro area in June to 11.3% recorded at the same time the highest level since 1995.
The pound strengthened against the dollar, a report showed that house prices in the UK rose in August, reducing fears that the recession worsens.
The Australian dollar traded near a five-week low on fears of slowing in China, which will hinder economic growth in Australia. Demand for Australian and New Zealand dollar will be limited to the output of the index of purchasing managers in China, which will be presented next week and be able to show the current state of the manufacturing industry, which is expected to be in stagnation. Also today, the RBA said that credit to the private sector grew by 0.2%, compared with growth of 0.3% in June and expectations at 0.4%.

EUR/USD: during the European session, the pair rose more than a figure, and is now approaching the level of $ 1.2625, which is a maximum of 3 July.
GBP/USD: pair shows a steady and strong growth and is now trading near the maximum of yesterday
USD/JPY: the pair managed to update a minimum of 24 August, and then retreated slightly and is now trading at Y78.48

At 12:30 GMT, Canada will report for a change of GDP in June, changes in GDP for the quarter on an annualized basis in the second quarter. At 13:45 GMT the U.S. will release Chicago PMI index for August. At 13:55 GMT the U.S. will publish an indicator of consumer confidence from the University of Michigan in August. At 14:00 GMT the U.S. said the change of volume of industrial orders in July. At the same time will be an economic symposium in Jackson Hole, where an address by Federal Reserve Chairman Ben Bernanke. At 15:55 GMT, the Executive Director of the Bank of England (Financial Stability) Andrew Haldane will deliver a speech at 17:10 GMT and will speak member Monetary Policy Committee Adam Posen.

• The ECB will continue to strive to maintain price stability
• ECB will do whatever is necessary to preserve the integrity of the euro
• Europe needs more solidarity and overall control of the budget
• The main risk for the euro is the lack of confidence in the euro itself

EUR/USD

Offers $1.2600, $1.2590

Bids $1.2487, $1.2470, $1.2450, $1.2430

AUD/USD

Offers $1.0450, $1.0420, $1.0400, $1.0390, $1.0380/85, $1.0345/50

Bids $1.0250, $1.0215, $1.1070 Medium demand

GBP/USD

Offers $1.5850, $1.5820/25, $1.5800/10

Bids $1.5765, $1.5750/40, $1.5720, $1.5705/00

EUR/JPY

Offers Y99.80, Y99.45/50, Y99.20, Y99.00

Bids Y97.80/70, Y97.50

USD/JPY

Offers Y79.20, Y79.00, Y78.90, Y78.75/80

Bids Y78.30/25, Y78.20, Y77.90

EUR/GBP

Offers stg0.8000, stg0.7980, stg0.7945/55

Bids stg0.7890, stg0.7875/70, stg0.7860/50

• It is difficult to say how long it would take to countries in crisis, for reform

• Structural changes in the countries in crisis, will take time

• The banks remain high refinancing needs in the future

• ECB may stop immediately all emergency measures

• Optional emergency measures to stop now

EUR/USD $1.2400, $1.2500, $1.2540, $1.2550, $1.2580, $1.2600

USD/JPY Y78.40, Y78.50, Y79.20, Y79.30

GBP/USD $1.5690, $1.5800, $1.5845

USD/CHF Chf0.9600, Chf0.9500

AUD/USD $1.0275, $1.0300, $1.0395, $1.0400

01:30 Australia Private Sector Credit, m/m July +0.3% +0.4% +0.2%

01:30 Australia Private Sector Credit, y/y July +4.4% +4.4% +4.2%

05:00 Japan Construction Orders, y/y July +4.6%

05:00 Japan Housing Starts, y/y July -0.2% -10.0%

Yesterday the euro continued its yesterday's decline against the dollar on negative sentiment in the market, as well as a sharp decline in stock markets at the opening of trading. At the same time, the Spanish Prime Minister Mariano Rajoy said that Spain will wait a formal request for financial assistance, and the International Monetary Fund said that the European Central Bank should take steps to mitigate the policy. Investors are also slow to cover short dollar positions that are open in the expectation that Bernanke will announce the beginning of the third phase of quantitative easing in Jackson Hole on Friday, as the outcome of this speech is unclear. The single currency rose slightly amid lower borrowing costs in Italy. Italy sold a ten-year treasury bills in the amount of 4.0 billion euros, 3.0-4.0 billion euro target. The ratio of applications to cover was 1.42 versus 1.29 previously.

On stronger dollar also weighed data on consumer spending, which rose in July for the first time in three months, gaining 0.4%. A separate Labor Department report showed that the number of initial claims for unemployment benefits in the U.S. has changed, from a revised upward index last week.

During the first half of the day's pound rose against most currencies after data showed that the number of approved applications for mortgage loans increased in July, thus indicating a recovery from the recession in June. Data from the Bank of England showed that the number of mortgage approvals rose to the level of 47,312 in July. But even these positive data have not helped the pound to hold their positions, and as a result the currency plummeted, updating the yesterday's low. This trend was caused by the Prime Minister of Spain, Mariano Raho.

His speech also contributed to the decline in value the Australian dollar, which lost its position against most major currencies. But the decline began after a government report that the number of approved applications for housing construction fell in July to -17.3%, reaching the minimum values ​​at the same time in the last ten years in the background of the fact that most of the investment now accounts for the mining industry, which is now at its peak. We also learned that the profitability of Australian 10-year bonds continued to decline, fixing the fall for 10 consecutive days, and is on the verge of the long fall, at least since 1990.

Canadian dollar continues to decline relative to the 16 major currencies after yesterday's data showed that the U.S. economy, which is the largest trading partner, increased by more than the initial estimate. Was supported by the fall in output today's U.S. data, which proved positive.

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

EUR/USD $1,2506 -0,19%

GBP/USD $1,5783 -0,29%

USD/CHF Chf0,9601 +0,19%

USD/JPY Y78,62 -0,09%

EUR/JPY Y98,31 -0,31%

GBP/JPY Y124,07 -0,39%

AUD/USD $1,0293 -0,49%

NZD/USD $0,7988 -0,19%

01:30 Australia Private Sector Credit, m/m July +0.3% +0.4% +0.2%

01:30 Australia Private Sector Credit, y/y July +4.4% +4.4% +4.2%

05:00 Japan Construction Orders, y/y July +4.6%

05:00 Japan Housing Starts, y/y July -0.2% -10.0%

06:00 United Kingdom Nationwide house price index August -0.7% +0.2%

06:00 United Kingdom Nationwide house price index, y/y August -2.6% -2.2%

06:00 Germany Retail sales, real adjusted July -0.1% +0.2%

06:00 Germany Retail sales, real adjusted July +2.9% +0.1%

09:00 Eurozone Harmonized CPI, Y/Y (preliminary) August +2.4% +2.5%

09:00 Eurozone Unemployment Rate July 11.2% 11.3%

12:30 Canada GDP (m/m) June +0.1% +0.1%

13:45 U.S. Chicago Purchasing Managers' Index August 53.7 53.6

13:55 U.S. Reuters/Michigan Consumer Sentiment Index (finally) August 73.6 73.7

14:00 U.S. Factory Orders July -0.5% +1.1%

14:00 U.S. Jackson Hole Symposium -

14:00 U.S. Fed Chairman Bernanke Speaks -

17:10 United Kingdom MPC Member Posen Speaks -