The U.S. dollar fell against most major currencies, despite U.S. economic data that beat expectations. The index of U.S. consumer confidence reached its peak at 6 years old, could not raise a dollar. According to the data, in July consumer sentiment index from Thomson-Reuters and the Michigan Institute has risen to the level of 85.1, compared with a final reading for June at 84.1. It is worth noting that according to the average estimates of experts, the index had only grow to the level of 84.0 from 83.9 (preliminary reading for July).

The dollar's decline was due to investors' concern about the possible changes in the Fed's key interest rates to reduce the incentive program. On Thursday, The Wall Street Journal wrote that the meeting to discuss future policy on July 30-31, the central bank will keep bond buying program. However, the management is likely to discuss the revision of its guidelines. The article reported that the central bank may lower the threshold 6.5% unemployment or state that short-term interest rates will not increase with a decrease in inflation. Such steps will point to the fact that the folding program of bond purchases by 85 mldr dollars a month may not come as quickly as investors believed.

The yen higher against the U.S. dollar, which has been associated with the release of the report on Japan. As shown by recent data that has been provided by the Ministry of Internal Affairs and Communications, the core consumer price index in Japan in June rose by 0.4% compared with the same period last year, marking the first increase in more than a year. It is worth noting that according to the average forecasts of experts, the growth of this index was up 0.3%, while in May, the index remained unchanged. This growth has been favorable news for the Bank of Japan, which has launched a two-year program to combat deflation, aimed at achieving inflation of 2%. According to preliminary estimates, in the Tokyo region inflation in July was 0.3%, compared with a forecast of 0.2%. The key consumer price index, which does not include the more volatile food prices, rose 0.3%. However, it should be noted that inflation excluding the prices of petroleum products and food, which, for example, in the United States is used as the main indicator fell by 0.2%.

Published data highlight the successes of the policy pursued by Prime Minister Shinzo Abe. Recall that in April 2013, he launched an ambitious program of quantitative easing, and the main objective is to achieve a 2% inflation rate and the revival of economic growth.

EUR/USD $1.3100, $1.3170, $1.3200, $1.3230, $1.3250, $1.3300

USD/JPY Y99.50, Y100.00, Y100.50, , Y101.00/05

GBP/USD $1.5250, $1.5270, $1.5375

EUR/GBP 8575, stg0.8580, stg8600

USD/CHF Chf0.9350

AUD/USD $0.9150, $0.9250, $0.9265, $0.9270, $0.9290, $0.9305

USD/CAD C$1.0235, C$1.0300

Data

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The dollar rose slightly against the euro, despite the lack of publication of economic data. Note also that the markets are still in a state of thin trading before the release of U.S. data 13:55 GMT. This report may show that the final index of consumer sentiment from the Reuters / Michigan fell slightly in July - to the level of 84.0, compared with the June reading at the level of 84.1 points.

In addition, we add that market expectations are that the leadership of the Federal Reserve intends to convince the markets and investors that monetary policy authorities will continue to remain accommodative and supportive. The next meeting of the Federal Open Market Committee will be held on July 30-31. According to preliminary surveys, about 54% of economists believe that Bernanke and his colleagues decided to reduce the amount of monthly purchases of bonds to $ 65 billion from the current $ 85 billion, however, yesterday the Wall Street Journal reported that the authorities may still leave the bond purchase program unchanged and may indicate that the monetary policy will remain soft for a longer period of time.

The yen higher against the U.S. dollar, which has been associated with the release of the report on Japan. As shown by recent data that has been provided by the Ministry of Internal Affairs and Communications, the core consumer price index in Japan in June rose by 0.4% compared with the same period last year, marking the first increase in more than a year. It is worth noting that according to the average forecasts of experts, the growth of this index was up 0.3%, while in May, the index remained unchanged. This growth has been favorable news for the Bank of Japan, which has launched a two-year program to combat deflation, aimed at achieving inflation of 2%. According to preliminary estimates, in the Tokyo region inflation in July was 0.3%, compared with a forecast of 0.2%.

Core CPI, which does not include the more volatile food prices, rose 0.3%.

However, it should be noted that inflation excluding the prices of petroleum products and food, which, for example, in the United States is used as the main indicator fell by 0.2%.

Published data highlight the successes of the policy pursued by Prime Minister Shinzo Abe. Recall that in April 2013, he launched an ambitious program of quantitative easing, and the main objective is to achieve a 2% inflation rate and the revival of economic growth.

EUR / USD: during the European session, the pair fell to $ 1.3260

GBP / USD: during the European session, the pair rose to $ 1.5416

USD / JPY: during the European session, the pair fell to Y98.46

At 13:55 GMT the United States will come indicator of consumer confidence from the University of Michigan in July.

EUR/USD

Offers $1.3340/50, $1.3320/25, $1.3300, $1.3298

Bids $1.3250, $1.3235/25, $1.3200, $1.3165/50

GBP/USD

Offers $1.5530, $1.5500, $1.5470/80, $1.5440/50, $1.5420

Bids $1.5330/20, $1.5305/00, $1.5280, $1.5264

AUD/USD

Offers $0.9400, $0.9380, $0.9360/70, $0.9345/50, $0.9300

Bids $0.9235/30, $0.9220, $0.9210/00, $0.9150, $0.9130/25

EUR/JPY

Offers Y133.00, Y132.45/50, Y132.15/20, Y131.95/00, Y131.55/60

Bids Y130.80/75, Y130.50, Y130.20, Y130.10/00

USD/JPY

Offers Y100.45/50, Y100.15/20, Y100.00, Y95.75/80, Y99.50, Y99.35/40

Bids Y98.49/45, Y98.25/20, Y98.00, Y97.80, Y97.50

EUR/GBP

Offers stg0.8700, stg0.8680/85, stg0.8665, stg0.8645/55, stg0.8643

Bids stg0.8582, stg0.8575/65, stg0.8550

EUR/USD $1.3100, $1.3170, $1.3200, $1.3230, $1.3250, $1.3300

USD/JPY Y99.50, Y100.00, Y100.50, , Y101.00/05

GBP/USD $1.5250, $1.5270, $1.5375

EUR/GBP 8575, stg0.8580, stg8600

USD/CHF Chf0.9350

AUD/USD $0.9150, $0.9250, $0.9265, $0.9270, $0.9290, $0.9305

USD/CAD C$1.0235, C$1.0300

The Dollar Index fell, extending a third straight weekly decline, on speculation the Federal Reserve will reassure investors that policy will remain accommodative at next week’s meeting. The Federal Open Market Committee is scheduled to meet July 30-31 and won’t announce a decision to reduce its monthly bond purchases at that meeting, according to 54 economists surveyed by Bloomberg News from July 18-22. Half of those polled said Fed Chairman Ben S. Bernanke will trim bond buying to $65 billion from the current pace of $85 billion in September. A Wall Street Journal article yesterday said the Fed is likely to revise its guidance on rates when policy makers meet July 30-31.

The U.S. currency has dropped versus 15 of its 16 major counterparts since July 19 before reports next week predicted to show economic expansion in the second quarter and jobs growth in July slowed. A July 31 report will probably show U.S. annualized gross domestic product grew 1 percent in the April-to-June period, slowing from 1.8 percent in the previous three months, according to the median forecast in a Bloomberg poll. Employers added 184,000 jobs this month, after 195,000 additional positions were created in June, a separate poll forecast before the Aug. 2 data release.

The yen erased gains today after Japan’s statistics bureau said consumer prices excluding fresh food rose 0.4 percent from a year earlier in June. The median of estimates in a Bloomberg survey was for a 0.3 percent increase.

EUR / USD: during the Asian session the pair traded in the range of $ 1.3265-90

GBP / USD: during the Asian session the pair traded in the range of $ 1.5370-05

USD / JPY: during the Asian session the pair fell to Y98.65

There is a very quiet calendar on both sides of the Atlantic Friday, with little to suggest any equivalent event to the corresponding day last year, when ECB President Mario Draghi promised to do "whatever it takes" to preserve the euro. The European calendar gets underway at 0600GMT, with the release of the German June import and export prices. French July consumer confidence data will be released at 0645GMT. Analysts are looking for a reading of 79, up from 78. At 1000GMT, the Central Bank of Ireland bulletin for the third quarter is set for release.

Across the Atlantic, Mexico's June trade balance is expected at 1300GMT, with the Bank of Mexico's latest policy meeting minutes expected at 1400GMT. In between, at 1355GMT, the final University of Michigan July Consumer Sentiment data is set to be released. The Michigan Sentiment index is expected to be revised up very slightly to a reading of 84.0 in July from the 83.9 preliminary reading. There were upward revisions to Michigan from the preliminary to final estimates in each of the last six months, with particularly large adjustments in March and April. There were accompanying upward revisions to both the current conditions and expectations readings in each of the last six months as well. The 1-year inflation expectation reading was 3.3% in the preliminary July estimate, up from 3.0% in June.

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

EUR/USD $1,3276 +0,60%

GBP/USD $1,5382 +0,44%

USD/CHF Chf0,9301 -0,76%

USD/JPY Y99,27 -1,01%

EUR/JPY Y131,77 -0,43%

GBP/JPY Y152,67 -0,56%

AUD/USD $0,9235 +0,76%

NZD/USD $0,8064 +1,08%

USD/CAD C$1,0283 -0,30%

13:55 U.S.   Reuters/Michigan Consumer Sentiment Index (Finally) July 83.9 84.0