The U.S. dollar has appreciated strongly against the euro, which was associated with increased political uncertainty in Italy, as well as the release of important U.S. data .

It should be noted that after it was reported that the Italian President Napolitano canceled his participation in the conference against the " political instability," the Italian news agency ANSA explained that this is due to the threats of Berlusconi's party quit the coalition if deprived of their leader in the Senate because of allegations of tax fraud . We add that such a mass resignation would be a disaster for the government Letta , which is now trying to cope with the problem of the budget deficit and national debt.

The President Napolitano issued a statement condemning the position of the members of Forza Italia, calling it " institutionally destructive ." He urged parliamentarians to find other ways to express support for the leader, " without calling a threat to the normal functioning of the two Houses of Parliament ."

Add that to the course of trade is also affected by U.S. data that showed that the gross domestic product , the broadest measure of all goods and services produced in the economy, rose by a seasonally adjusted 2.5 % in the second quarter , in line with the preliminary value voiced last month. Economists forecast that the revised second quarter growth rate of 2.7%.

Meanwhile, another report , which was submitted to the Department of Labor showed that the number of Americans applying for first time unemployment benefits remained near six-year low last week , indicating that the improvement in the employment situation , although in recent years the data have been distorted violations in the financial statements . Initial jobless claims , the rate of layoffs, fell by a seasonally adjusted 5,000 to 305,000 in the week ended Sept. 21. Value was lower than the forecast of economists in 319,000 new claims . The Ministry of Labour has revised slightly upwards the number of complaints in the previous week to 310,000 from 309,000 .

The yen fell against all major currencies after the news agency Kyodo News reported that the Japanese government is planning to commit to "immediately" begin a study on the effectiveness of corporate tax rates . The head of the investment department of the Government Pension Investment Fund of Japan (GRIF), which manages 121 trillion yen ($ 1.23 trillion ), Takatoshi Ito said that the beginning of the Olympics -2020 Japan should raise the sales tax to a level of at least 20 % in order to prevent a " catastrophe " on its bond market. "The current rate - of 5% VAT - the fifth part of the same tax established in northern countries such as Sweden, to prevent the growth rates on the public debt , which is two times the GDP of the country ," - said Takatoshi Ito.

Meanwhile , we note that in the course of trade affected by the Prime Minister of Japan, Shinzo Abe , in which he called Wall Street traders to invest in Japan , promising that the country's economy will be the driving force of the global economic recovery .

"Now the Japanese economy is feeling exceptionally well " - said Abe , urging traders " buy into Abenomics».

In separate comments Abe responded to criticism over plans to tighten the country's defense . " We have a neighbor whose military spending is at least twice as much as in Japan," - he said , referring to the territorial dispute with China.

The British pound fell against the dollar after the final data showed that the UK economy expanded by 0.7 percent in the second quarter compared with the previous quarter , in line with estimates. However, the first quarter growth was revised slightly upward to 0.4 percent from 0.3 percent.

In addition , the Office of Statistics said gross domestic product expanded by 1.3 percent in the second quarter compared to last year. The annual figure was revised down from the previously estimated growth of 1.5 percent .

Another report showed that household spending rose 0.3 percent in the second quarter, but were still 2.8 percent below the peak consumption achieved in the fourth quarter of 2007.

In a separate review, the Office for National Statistics reported that the current account deficit narrowed to 13 billion pounds in the second quarter, compared with a revised deficit of 21.8 billion pounds in the first quarter.

EUR/USD $1.3345, $1.3350, $1.3355, $1.3415, $1.3450 $1.3500

GBP/USD $1.6000, $1.6040, $1.6065, $1.6095

USD/JPY Y98.15, Y98.50, Y98.65, Y98.70, Y99.00, Y99.40, Y99.50, Y99.65, Y99.70, Y100.00, Y101.00

AUD/USD $0.9350, $0.9400, $0.9490, $0.9500, $0.9615

USD/CAD Cad1.0200, Cad1.0280

EUR/CHF Chf1.2290, Chf1.2335

USD/CHF Chf0.9105

EUR/NOK Nok8.1300, Nok8.1375

EUR/GBP stg0.8390, stg0.8400, stg0.8420

EUR/JPY Y131.75, Y132.00, Y134.20, Y134.50

EUR/USD

Offers $1.3620, $1.3600, $1.3575/80, $1.3545/50

Bids $1.3480, $1.3455/50, $1.3420/10, $1.3400

GBP/USD

Offers $1.6200, $1.6179/80, $1.6100

Bids $1.6025/20, $1.6000, $1.5985/80, $1.5960/50, $1.5920

AUD/USD

Offers $0.9520/30, $0.9500, $0.9480, $0.9450, $0.9420

Bids $0.9320, $0.9300, $0.9280

EUR/GBP

Offers stg0.8500, stg0.8480, stg0.8460/65, stg0.8450

Bids stg0.8355/50, stg0.8320, stg0.8300, stg0.8280

EUR/JPY

Offers Y134.50, Y134.20, Y134.00, Y133.60/80, Y133.35/40

Bids Y132.60/50, Y132.20, Y132.00

USD/JPY

Offers Y99.60, Y99.50, Y99.15/20

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

Eurozone broad money supply growth accelerated in August, while loans to private sector declined further, the European Central Bank said Thursday.

The broad monetary aggregate M3 grew 2.3 percent from a year ago, in line with forecast, after rising 2.2 percent in July.

Among the components of credit to the private sector, loans dropped 2 percent in August, compared with a 1.9 percent fall in the previous month.

At the same time, loans to households gained 0.1 percent, unchanged from the previous month. Similarly, the annual growth rate of lending for house purchase, the most important component of household loans, remained unchanged at 0.7 percent.

The U.K. economy expanded 0.7 percent sequentially in the second quarter as estimated in August, final data from the Office for National Statistics showed Thursday.

However, the first quarter growth was revised up ">Further, the statistical office said gross domestic product expanded 1.3 percent in the second quarter from a year ago, which was revised down from the previously estimated 1.5 percent.

Another report showed that household spending increased by 0.3 percent in the second quarter but still remains 2.8 percent below the peak of spending in the fourth quarter of 2007.

In a separate communique, the ONS said the current account deficit narrowed to GBP 13 billion in the second quarter from a revised deficit of GBP 21.8 billion in the first quarter.

The ONS today said business investment decreased by GBP 786 million or 2.7 percent quarter-on-quarter to GBP 28.7 billion in the second quarter.

EUR/USD $1.3345, $1.3350, $1.3355, $1.3415, $1.3500, $1.3600, $1.3700

GBP/USD $1.6000, $1.6040, $1.6065, $1.6095

USD/JPY Y98.15, Y98.50, Y98.65, Y98.70, Y99.00, Y99.40, Y99.50, Y99.65, Y99.70, Y100.00, Y100.50, Y101.00

AUD/USD $0.9350, $0.9490, $0.9500, $0.9615

USD/CAD Cad1.0200, Cad1.0280

EUR/CHF Chf1.2290, Chf1.2335

USD/CHF Chf0.9105

EUR/NOK Nok8.1300

EUR/GBP stg0.9380, stg0.8400, stg0.8420

EUR/JPY Y131.75, Y132.00, Y134.20, Y134.50

---

The yen dropped against all its 16 major peers after Kyodo News reported, without citing anyone, that Japan’s government plans to pledge to “promptly” start a study on cutting the effective corporate tax rate.

The U.S. currency also strengthened before a report forecast to show the world’s largest economy expanded at a quicker pace than initially estimated in the second quarter. U.S. gross domestic product expanded an annualized 2.6 percent in the second quarter, according to the median estimate of analysts polled by Bloomberg News before today’s report, compared to an earlier reading of 2.5 percent.

Applications for unemployment benefits in the U.S. probably climbed to 325,000 in the week ended Sept. 21 from 309,000 in the previous period, according to the median forecast of economists surveyed by Bloomberg before today’s report. The figure dropped in the week through Sept. 7 to the lowest level since 2006 due to computer-system changeovers by California and Nevada employment agencies.

U.S. Treasury Secretary Jacob J. Lew stepped up pressure on Congress to avert a potential default, telling lawmakers in a letter yesterday that measures to avoid breaching the debt ceiling will be exhausted on Oct. 17. The federal spending authority runs out in four days.

EUR / USD: during the Asian session the pair traded in the range of $ 1.3510-25

GBP / USD: during the Asian session, the pair traded in the range of $ 1.6065-85

USD / JPY: during the Asian session the pair rose to Y99.10

Focus turns to release of Q2 UK and US GDP data for added direction.

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

EUR/USD $1,3522 +0,38%

GBP/USD $1,6077 +0,47%

USD/CHF Chf0,9096 -0,38%

USD/JPY Y98,45 -0,29%

EUR/JPY Y133,13 +0,11%

GBP/JPY Y158,25 +0,18%

AUD/USD $0,9360 -0,26%

NZD/USD $0,8241 -0,42%

USD/CAD C$1,0316 +0,13%

06:00 Kingdom Nationwide house price index September +0.6% +0.5%

06:00 United Kingdom Nationwide house price index, y/y September +3.5% +4.4%

08:00 Eurozone M3 money supply, adjusted y/y August +2.2% +2.3%

08:30 United Kingdom Current account, bln Quarter II -14.5 -11.2

08:30 United Kingdom GDP, q/q (Finally) Quarter II +0.7% +0.7%

08:30 United Kingdom GDP, y/y (Finally) Quarter II +1.5% +1.5%

12:30 U.S. Initial Jobless Claims September 309 319

12:30 U.S. PCE price index, q/q Quarter II +1.8% +1.8%

12:30 U.S. PCE price index ex food, energy, q/q Quarter II +0.8% +0.8%

12:30 U.S. GDP, q/q (Finally) Quarter II +2.5% +2.7%

13:00 Switzerland SNB Quarterly Bulletin Quarter III

14:00 U.S. Pending Home Sales (MoM) August -1.3% -0.9%

14:10 Eurozone ECB’s Vitor Constancio Speaks

14:10 U.S. FOMC Member Jeremy Stein Speaks

23:05 United Kingdom Gfk Consumer Confidence September -13 -10

23:30 Japan Tokyo Consumer Price Index, y/y September +0.5% +0.5%

23:30 Japan Tokyo CPI ex Fresh Food, y/y September +0.4% +0.5%

23:30 Japan National Consumer Price Index, y/y August +0.7% +0.8%

23:30 Japan National CPI Ex-Fresh Food, y/y August +0.7% +0.7%