Business activity at French service sector firms contracted the least in one year, despite a faster decline in incoming new work, detailed results of a survey by Markit Economics showed Wednesday.

The business activity index, which measures the health of the service sector, rose to a 12-month high of 48.9 in August from 48.6 in July. The preliminary report showed a lower reading of 47.7.

An index reading above 50 indicates expansion of the sector, while a reading below 50 suggests contraction.

The composite output index, that measures business activity in the entire private sector including manufacturing and service sector firms, slipped to 48.8 from 49.1 in July. This was higher than the preliminary reading of 47.9.

The level of new business placed with service providers continued to decrease in August, extending the current period of contraction to 17 months.

Employment at service providers fell for a sixteenth consecutive month. However, the latest decrease in staffing levels was only modest and the least marked since June 2012, Markit said.

Data also signaled a modest drop in overall private sector employment during August that was the slowest since April 2012.

Value of the pound significantly higher against the dollar, helped by a report on the index of the PMI services sector. As the results of recent studies that have been presented Markit Economics and BME, following last month active in the UK service sector has grown considerably , registering with the fastest pace of expansion in more than six and a half years , helped by an increase in new orders.

According to the report , the seasonally adjusted index of purchasing managers in the services sector rose in August to a level of 60.5 from 60.2 in July. Economists expected the index to decline to 59.8 . The index remains above the neutral mark of 50 , and points to the greatest improvement in business activity in December 2006 .

Add that led the growth of the overall index stood increase in the number of new orders received by the British services sector , which rose at the fastest pace in more than 16 years, due to the ongoing strengthening market confidence and improve marketing.

In addition, it was reported that input price inflation declined in August, but at the same time showing the slowest pace since May. At the same time, the prices for the products recorded a slight increase . The study showed that the British service providers still believe that the activity will continue to grow over the next year.

The euro rose against the dollar despite the fact that the previously weak retail sales data from the blocked part of the positive GDP report . According to the report , in the second -quarter gross domestic product grew by 0.3 % , thus confirming the predictions of experts and the previous estimate . Meanwhile , we add that the decline in the first quarter was revised downward to 0.2 % from 0.3 %. On an annualized basis , GDP fell by 0.5 percent, which was slightly lower than originally reported - at 0.7 per cent reduction.

Meanwhile , it was revealed in July retail sales rose by 0.1 % compared to the previous month. Many experts believed that the value of this index will rise by 0.5 % , after falling 0.7 % in June , which was revised upwards from -0.5 %. Sales of food, beverages and tobacco increased by 1% during July , while retail trade in non-food sector fell by 0.4 %. On an annual basis, retail sales fell in July by 1.3 %. It was little more than a drop of 1.1% ( revised from -0.9 %) , which was reported in June. We add that the projected sales had fallen by 0.3 %.

The Australian dollar has appreciated significantly against its U.S. counterpart , responding thus to the GDP report . According to the latest data, which were published today the Australian Bureau of Statistics , at the end of the second quarter of Australia's economy grew by confirming with the estimates of experts.

As it became known, in quarterly terms of Australia 's economic growth in the second quarter was 0.6 percent, which is fully in line with the experts, and followed the same growth in the last two quarters .

Meanwhile, it became known that the annualized growth of 2.6 %. We add that, according to the average forecast of economists was to increase of 2.5 %, which would equal the growth that was recorded in the first quarter.

Note that today's numbers and other previously submitted reports support the view of the Reserve Bank of Australia in respect of the fact that the economy is growing below its trend, and the arguments of the opposition that the decline in interest rates was reflected in weak economic growth. But the modest difference in growth rates between the first and second quarters, and more substantial than expected , the contribution of household expenses , can suggest that the economy is strengthening.

The Canadian dollar rose slightly against the U.S. dollar after the Bank of Canada has upheld the key interest rate for the twenty-fifth time in a row .

The Bank of Canada left its key interest rate unchanged at 1.00 %. The central bank said that " considerable monetary stimulus , which is now seen to remain fit." The Bank of Canada reiterated that total and core inflation are expected to remain low-key and gradually return to a level of 2%.

Earlier, the Canadian dollar has ignored data showing an increase in the trade deficit in Canada in July. The trade deficit of Canada in July was 931 million Canadian dollars ( 884.14 million U.S. dollars ) , well above the forecast of 200 million Canadian dollars, economists said Royal Bank of Canada.

Activity in the German private sector economy increased for the fourth successive month in August, and to a larger extent than estimated earlier, final data from a survey conducted jointly by Markit Economics and BME showed Wednesday.

The seasonally adjusted composite output index, a measure of activity in the manufacturing sector and the service sector, rose to a seven-month high 53.5 in August from 52.1 in July. The preliminary estimates were for a score of 53.4. The index has now stayed above the no-change 50 mark - which separates growth from contraction - for the fourth month in a row.

At the same time, the business activity index for the service sector advanced to a 6-month high of 52.8 in August from 51.3 in July. The index was estimated to rise to 52.4.

The improvement in service sector business activity were driven by a further growth in new work during August, which rose at the fastest pace since January. Responding to the increase in activity, service providers raised their workforces for a second successive month, though at a slower rate than in July.

Average input prices faced by German service providers increased sharply in August amid higher energy bills and fuel prices. Meanwhile, output prices increased only moderately and at a slower pace than in the previous month.

EUR/USD $1.3100, $1.3150, $1.3250, $1.3325, $1.3350

USD/JPY Y98.50, Y99.00, Y99.25, Y99.50, Y99.75, Y100.00, Y100.30

EUR/JPY Y130.20, Y131.35

GBP/USD $1.5400, $1.5450, $1.5550

EUR/GBP stg0.8475

USD/CHF Chf0.9380, Chf0.9400

AUD/USD $0.8955, $0.9025, $0.9055

NZD/USD $0.7750, $0.7800

Data

01:30 Australia Gross Domestic Product (QoQ) Quarter II +0.6% +0.6% +0.6%

01:30 Australia Gross Domestic Product (YoY) Quarter II +2.5% +2.5% +2.6%

01:45 China HSBC Services PMI August 51.3 52.8

07:50 France Services PMI (Finally) August 47.7 47.7 48.9

07:55 Germany Services PMI (Finally) August 52.4 52.4 52.8

08:00 Eurozone Services PMI (Finally) August 51.0 51.0 51.5

08:30 United Kingdom Purchasing Manager Index Services August 60.2 59.8 60.5

09:00 Eurozone Retail Sales (MoM) July -0.7% Revised From -0.5% +0.5% +0.1%

09:00 Eurozone Retail Sales (YoY) August -1.1% Revised From -0.9% -0.3% -1.3%

09:00 Eurozone Household Consumption (QoQ) Quarter II +0.1% +0.1% +0.2%

09:00 Eurozone GDP (QoQ) (Revised) Quarter II +0.3% +0.3% +0.3%

09:00 Eurozone GDP (YoY) (Revised) Quarter II -0.7% -0.7% -0.5%

The euro exchange rate fell slightly against the dollar, while retreating from a session high against the background of the fact that the weak retail sales data from the blocked part of the positive GDP report . According to the report , in the second -quarter gross domestic product grew by 0.3 % , thus confirming the predictions of experts and the previous estimate . Meanwhile , we add that the decline in the first quarter was revised downward to 0.2 % from 0.3 %. On an annualized basis , GDP fell by 0.5 percent, which was slightly lower than originally reported - at 0.7 per cent reduction.

Meanwhile , it was revealed in July retail sales rose by 0.1 % compared to the previous month. Many experts believed that the value of this index will rise by 0.5 % , after falling 0.7 % in June , which was revised upwards from -0.5 %.

Sales of food, beverages and tobacco increased by 1% during July , while retail trade in non-food sector fell by 0.4 %.

On an annual basis, retail sales fell in July by 1.3 %. It was little more than a drop of 1.1% ( revised from -0.9 %) , which was reported in June. We add that the projected sales had fallen by 0.3 %.

Value of the pound significantly higher against the dollar, helped by a report on the index of the PMI services sector.

As the results of recent studies that have been presented Markit Economics and BME, following last month active in the UK service sector has grown considerably , registering with the fastest pace of expansion in more than six and a half years , helped by an increase in new orders.

According to the report , the seasonally adjusted index of purchasing managers in the services sector rose in August to a level of 60.5 from 60.2 in July. Economists expected the index to decline to 59.8 . The index remains above the neutral mark of 50 , and points to the greatest improvement in business activity in December 2006 .

Add that led the growth of the overall index stood increase in the number of new orders received by the British services sector , which rose at the fastest pace in more than 16 years, due to the ongoing strengthening market confidence and improve marketing.

In addition, it was reported that input price inflation declined in August, but at the same time showing the slowest pace since May. At the same time, the prices for the products recorded a slight increase . The study showed that the British service providers still believe that the activity will continue to grow over the next year.

The Australian dollar has appreciated strongly against its U.S. counterpart , responding thus to the GDP report . According to the latest data, which were published today the Australian Bureau of Statistics , at the end of the second quarter of Australia's economy grew by confirming with the estimates of experts.

As it became known, in quarterly terms of Australia 's economic growth in the second quarter was 0.6 percent, which is fully in line with the experts, and followed the same growth in the last two quarters .

Meanwhile, it became known that the annualized growth of 2.6 %. We add that, according to the average forecast of economists was to increase of 2.5 %, which would equal the growth that was recorded in the first quarter.

Note that today's numbers and other previously submitted reports support the view of the Reserve Bank of Australia in respect of the fact that the economy is growing below its trend , and the arguments of the opposition that the decline in interest rates was reflected in weak economic growth. But the modest difference in growth rates between the first and second quarters, and more substantial than expected , the contribution of household expenses , can suggest that the economy is strengthening.

EUR / USD: during the European session, the pair rose to $ 1.3186 , but then fell to $ 1.3171

GBP / USD: during the European session, the pair rose to $ 1.5630

USD / JPY: during the European session, the pair fell to Y99.37

At 12:30 GMT , Canada and the United States will present data on its trade balance for July. At 14:00 GMT we will know the decision of the Bank of Canada Interest Rate , and will cover the application of the Bank of Canada. At 18:00 GMT the United States will publish economic survey of the Fed's regional "Beige Book ."

EUR/USD

Offers $1.3290/300, $1.3250/60, $1.3230/40, $1.3220/25, $1.3195/200

Bids $1.3145-30, $1.3120/10, $1.3100, $1.3090

GBP/USD

Offers $1.5780/85, $1.5750/55, $1.5720/25, $1.5680/85, $1.5640/50

Bids $1.5522, $1.5510/00, $1.5460/50, $1.5425/20

AUD/USD

Offers $0.9300, $0.9250, $0.9220, $0.9200, $0.9180

Bids $0.9090/85, $0.9070, $0.9050, $0.9020/00, $0.8975/70, $0.8950

EUR/GBP

Offers stg0.8620, stg0.8590/600, stg0.8570, stg0.8550/55, stg0.8520

Bids stg0.84315, stg0.8425/20, stg0.8400

EUR/JPY

Offers Y132.20, Y131.95/00, Y131.80, Y131.50

Bids Y130.50, Y130.35/27, Y130.25/20, Y130.00

USD/JPY

Offers Y100.50, Y100.15/20, Y100.04/05, Y100.00

Bids Y99.45/40, Y99.20/15, Y99.00, Y98.76/72/69

EUR/USD $1.3100, $1.3150, $1.3250, $1.3325, $1.3350

USD/JPY Y98.50, Y99.00, Y99.25, Y99.50, Y99.75, Y100.00, Y100.30

EUR/JPY Y130.20, Y131.35

GBP/USD $1.5400, $1.5450, $1.5550

EUR/GBP stg0.8475

USD/CHF Chf0.9380, Chf0.9400

AUD/USD $0.8955, $0.9025, $0.9055

NZD/USD $0.7750, $0.7800

01:30 Australia Gross Domestic Product (QoQ) Quarter II +0.6% +0.6% +0.6%

01:30 Australia Gross Domestic Product (YoY) Quarter II +2.5% +2.5% +2.6%

01:45 China HSBC Services PMI August 51.3 52.8

The dollar traded 0.2 percent from a six-week high against the euro amid signs the U.S. economic recovery is gaining traction, adding to the case for the Federal Reserve to scale back stimulus this month.

The Bloomberg U.S. Dollar Index was near the highest since July before the Fed releases its outlook survey known as the Beige Book, while data later this week may show August payrolls rose by 180,000. The Institute for Supply Management’s manufacturing index increased to 55.7 last month, the highest since June 2011, the Tempe, Arizona-based group reported yesterday.

Australia’s currency climbed against its major peers after the nation’s economic growth quickened. In Australia, second-quarter gross domestic product grew 0.6 percent from the previous three-month period, when it expanded a revised 0.5 percent, government data showed today.

The pound was near a three-month high against the euro. Markit Economics and the Chartered Institute of Purchasing and Supply said yesterday a gauge of U.K. construction increased in August.

EUR / USD: during the Asian session the traded in the range of $ 1.3160-75

GBP / USD: during the Asian session, the pair traded in the range of $ 1.5555-75

USD / JPY: during the Asian session the pair traded in the range of Y99.40-75

There is a very full calendar on both sides of the Atlantic Wednesday, kicking off with the release of French PPI data at 0645GMT. The European final August services PMI start from 0713GMT when Spanish numbers cross the wires. Italian numbers are released at 0743GMT, French numbers at 0748GMT and German data at 0753GMT. The amalgamated euro area data will be released at 0758GMT, with analysts looking for the numbers to confirm the uptick in the economy. At 0855GMT, ECB Executive Board member Joerg Asmussen will speak at the Handelsblatt Jahrestagung "Banken im Umbruch", in Frankfurt am Main. Further eurozone data is expected from 0900GMT, when the July retail sales data and  the second quarter 2nd revision numbers are set for release. At 1030GMT, the EU Internal Markets Commissioner Michel Barnier is set to present a proposal on regulating the shadow banking sector, in Belgium. As the Obama Administration ups the effort on Capitol Hill on Syria, President Obama visits Sweden on route to the G20 meeting in St Petersburg. The US calendar gets underway from 1100GMT, when the MBA mortgage index for the 30 August week will be released. At 1130GMT, the August Challenger Layoffs data will cross the wires, to be followed at 1145GMT by the ICSC-Goldman Store Sales for the Aug 31 week. At 1230GMT, the US July International merchandise trade numbers will cross the wires. Also due at 1230GMT is the Canadian trade numbers. The US Redbook Average for the Aug 31 week will be released at 1255GMT. Bundesbank Board member Andreas Dombret is set to give a speech on "New regulatory requirements: necessity or over- regulation?" in Frankfurt am Main, expected at 1300GMT. The Aug ISM-NY Business Index will be released at 1345GMT. At 1400GMT, the Bank of Canada rate announcement will be released at 1400GMT, with no change expected in policy. US data will be released at 1400GMT and includes the second quarter services Index and the August online help wanted index. San Francisco Federal Reserve Bank President John Williams will deliver a speech on the economy and monetary policy in Portland, Oregon, starting at 1630GMT. The last US release of the day is the Beige Book, expected at 1800GMT. Last up, at midnight, Minneapolis Federal Reserve Bank Narayana Kocherlakota takes place in a town hall forum in La Crosse, Wisconsin.

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

EUR/USD $1,3166 -0,22%

GBP/USD $1,5557 +0,07%

USD/CHF Chf0,9367 +0,29%

USD/JPY Y99,55 +0,19%

EUR/JPY Y131,10 -0,02%

GBP/JPY Y154,87 +0,26%

AUD/USD $0,9056 +0,70%

NZD/USD $0,7798 -0,42%

USD/CAD C$1,0535 -0,11%

01:30 Australia Gross Domestic Product (QoQ) Quarter II +0.6% +0.6%

01:30 Australia Gross Domestic Product (YoY) Quarter II +2.5% +2.5%

01:45 China HSBC Services PMI August 51.3

07:00 United Kingdom Halifax house price index August +0.9% +0.7%

07:00 United Kingdom Halifax house price index 3m Y/Y August +4.6% +5.6%

07:50 France Services PMI (Finally) August 47.7 47.7

07:55 Germany Services PMI (Finally) August 52.4 52.4

08:00 Eurozone Services PMI (Finally) August 51.0 51.0

08:30 United Kingdom Purchasing Manager Index Services August 60.2 59.8

09:00 Eurozone Retail Sales (MoM) July -0.5% +0.5%

09:00 Eurozone Retail Sales (YoY) August -0.9% -0.3%

09:00 Eurozone Household Consumption (QoQ) Quarter II +0.1% +0.1%

09:00 Eurozone GDP (QoQ) (Revised) Quarter II +0.3% +0.3%

09:00 Eurozone GDP (YoY) (Revised) Quarter II -0.7% -0.7%

12:30 Canada Trade balance, billions July -0.5 -0.4

12:30 U.S. International trade, bln July -34.2 -38.6

14:00 Canada Bank of Canada Rate 1.00% 1.00%

14:00 Canada BOC Rate Statement

16:30 U.S. FOMC Member Williams Speaks

18:00 U.S. Fed's Beige Book September

20:30 U.S. API Crude Oil Inventories August +2.5