The dollar is essential, and, at the same time, fell sharply against most major currencies. The sudden surge of interest in the purchase raised the EUR / USD pair to week highs near 1.3355, but now the price has moved a few pips of the maximum values. Perhaps breakthrough single currency was associated with an attempt to break through the $ 1.3300. Although the catalyst of this movement is still unclear, traders talk of stops triggered after the USD / JPY fell to session lows at Y97.30.

Note that until such a sharp movement of the dollar showed significant gains against the euro, which has been associated with the release of U.S. data.

According to a survey released by the Federal Reserve Bank of Philadelphia, the activity in the industry in August, below expectations.

The volume of industrial production in the U.S. in July, has not grown, but that was expected. More detailed data Philadelphia Fed survey can be seen as a sign of early completion of growth. After a number of positive statistics is likely to disappoint investors and led to the liquidation of long positions in the dollar. Perhaps waiting for the start of reduction of redemption of bonds by the Fed changed. Yesterday's speech Bullard was conceived in favor of reducing the probability of a repurchase program is not in September and October. He warned of the need to take into account low inflation and weaker-than-expected data from the manufacturing sector.

Note that the sharp depreciation of the U.S. currency was marked against the pound, which also has no obvious explanation. We add that in the first half of the session helped the pound data showed that retail sales rose sharply in July, buoyed by the warm weather. These data are the new sign of recovery of the British economy.

According to the report, retail sales in July rose by 1.1% compared with the previous month and by 3% compared with the same period last year. Increase in the overall index contributed to an increase in sales of summer clothes, food and alcoholic drinks, while the British enjoyed a period of warm weather. Economists had expected sales to rise by 0.7% and 2.5%, respectively. These data have become the latest signal that the economic situation in the UK is improving after several years, during which time she was on the brink of stagnation.

Annual sales growth was the strongest since January 2011. For the three month period ending in July, retail sales rose by 2.2% compared with the same period last year, and it was the biggest increase since March 2008

European stocks dropped the most in more than five weeks as better-than-forecast U.S. jobless claims fueled speculation the Federal Reserve will taper its bond-buying program this year.

The Stoxx Europe 600 Index slid 1.1 percent to 305.24 at 4:30 p.m. in London, its largest drop since July 5. The equity benchmark yesterday rose to its highest level since May 22 as the euro area’s economy returned to growth in the three months through June after six quarters of contraction. It has still rallied 11 percent from a low on June 24.

In the U.S., a Labor Department report showed fewer Americans applied for unemployment benefits last week. Jobless claims (INJCJC) in the week ended Aug. 10 fell to 320,000 from a revised 335,000 a week earlier. The median forecast of economists had called for a reading of 335,000.

A Fed report showed that output from U.S. factories, mines and utilities was unchanged in July, after gaining a revised 0.2 percent in June. The median estimate of economists surveyed had called for a 0.3 percent increase.

A separate release showed manufacturing expanded at a slower pace in the New York region in August. The Fed Bank of New York’s general economic index slipped to 8.2 from 9.5 in July. Readings greater than zero mean activity expanded in New York, northern New Jersey and southern Connecticut.

National benchmark indexes declined in all 14 western-European markets that opened today.

FTSE 100 6,483.34 -104.09 -1.58% CAC 40 4,093.2 -21.00 -0.51% DAX 8,376.29 -61.83 -0.73%

Zurich Insurance declined 3.6 percent to 243 Swiss francs after posting second-quarter net income of $789 million. That missed the $823.8 million average projection of analysts in a Bloomberg survey. The insurer said the floods in central Europe in May and June cost it $140 million.

H&M lost 1.6 percent to 242 kronor after saying same-store sales fell 1 percent in July from the same month a year earlier. The average estimate in an SME Direkt survey of analysts had called for an increase of 0.8 percent.

BG Group declined 2.5 percent to 1,176.5 pence as the Egyptian army continued its campaign to break up demonstrations against the removal of the country’s president. On July 26, Chief Executive Officer Chris Finlayson said “events in Egypt remain a primary concern and will continue to be so as the political, social and business environment evolves.

AstraZeneca (AZN) Plc dropped 1.7 percent to 3,192.5 pence and GlaxoSmithKline (GSK) Plc lost 1.4 percent to 1,657.5 pence as Morgan Stanley lowered its recommendation on both drugmakers to underweight, the equivalent of sell, from equal weight.

Oriflame Cosmetics SA slid 6.6 percent to 202.30 kronor, the lowest price this year, after reporting earnings before interest, taxes, depreciation and amortization of 42.2 million euros ($56 million) and sales of 360 million euros in the second quarter. Analysts on average had forecast Ebitda of 46.7 million euros and revenue of 367 million euros for the period.

Imperial Tobacco Group Plc climbed 2.6 percent to 2,209 pence as Europe’s second-biggest tobacco company said it plans to introduce an alternative to cigarettes next year. The product will provide a different way of taking nicotine.

Prices for WTI crude oil rose again today, recording with the fifth session gain in a row and the longest series in April, as the strengthening of the unrest in Egypt strengthened fears that shipments from the Middle East may be reduced. We also add that the price of Brent crude oil rose to a four-month high today.

Futures rose 1%, after the government of Egypt has announced a state of emergency. The Egyptian authorities have reported that the number of those killed in the civil confrontation between Islamists and security forces has risen to 525 people. The true number of victims is much higher, since there are a lot of unregistered medical victims. Islamists, supporters of President Mohammed Mursi, who overthrew the last month, claiming that killed more than 2,000 people. The U.S. and other countries condemned the Egyptian security forces for actions that Turkish Prime Minister Recep Tayyip Erdogan called a "very serious massacre." It should be noted that the situation in Egypt could continue to have an impact on oil prices, raising it to a price that is primarily associated with the probability of blocking the Suez Canal, which is used by tankers to transport oil to Europe and North America from the Arabian Peninsula.

According to the International Energy Agency, the Middle East accounted for about 35 percent of global oil production in the first quarter of this year.

Meanwhile, we add that the course of trade is also affected by the U.S. data. As it became known, the number of initial claims for unemployment benefits fell to the lowest level since the recession began, a sign of strengthening labor market.

The number of applications for unemployment benefits fell by 15,000 adjusted for seasonal variation was 320,000. This is the lowest level since October 2007. Economists had expected initial claims to 334,000.

The moving average of initial claims in four weeks, smoothing the volatility of weekly data, fell by 4,000 to 332,000, with at least November 2007.

Note that the Fed closely watching the situation in the labor market, since it affects, whether the Fed will begin to curtail bond purchase program by 85 billion dollars a month, when the unemployment rate reached 7.0%.

The cost of the September futures on U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 107.59 dollars a barrel on the New York Mercantile Exchange.

September futures price for North Sea Brent crude oil mixture rose to $ 111.25 a barrel on the London exchange ICE Futures Europe.

Gold prices fell sharply today, losing about 1.1%, which was due to the rise in the dollar and the increase in yield of U.S. government bond yields to two-year high. Note that this dynamic in the first place was due to the release of data on the U.S., which increased the likelihood of reducing the Fed's economic stimulus program.

The data from the Labor Department showed that consumer prices rose 0.2 percent in July after a 0.5 percent increase in June. The slight increase in the price corresponds to the economists. Core CPI, which excludes food and energy, also rose by 0.2 percent. U.S. consumer prices in July rose for the third month in a row, bringing inflation rose to historically low levels.

Meanwhile, another report from the Labor Department showed that for the week ended August 10, the initial applications for unemployment benefits in the U.S. fell more than expected. At what number of applications for unemployment benefits fell to the lowest level in more than five years.

According to the report, the primary applications for unemployment benefits in the U.S. for the week August 4-10 decreased by 15 thousand to 320 thousand, the consensus forecast of 334 thousand also add that the primary applications for unemployment benefits for the week of July 28 - August 3 revised to 335 thousand from 333 thousand Meanwhile, secondary applications for unemployment benefits in the U.S. for the week July 28 - August 3, decreased by 54 thousand to 2.969 million

The latest figures were seen by analysts as those that may force Fed officials to reduce the monthly volume of asset-purchase program in September.

We also add that to the price of gold is also affected by quarterly reports U.S. hedge funds, which have shown that many of the participants have reduced, and in some cases completely sold their shares to a sharp fall in prices this year. Note that the outflow of capital from the eight largest gold exchange-traded fund totaled nearly 20 million ounces, or $ 27 billion, this year.

The cost of the October gold futures on COMEX today dropped to $ 1326.10 per ounce.

EUR/USD $1.3140, $1.3250, $1.3275, $1.3305, $1.3330

USD/JPY Y97.10, Y98.10, Y98.90, Y99.50, Y99.75

EUR/JPY Y131.85

GBP/USD $1.5425, $1.5515, $1.5545

EUR/GBP stg0.8550, stg0.8640, stg0.8650

USD/CHF Chf0.9240

EUR/CHF Chf1.2395, Chf1.2600

AUD/USD $0.9100, $0.9180

USD/CAD C$1.0185

U.S. stock-index futures dropped as an unexpected decline in jobless claims and a rise in the cost of living fueled speculation the Federal Reserve will reduce stimulus this year.

Global Stocks:

Nikkei  13,752.94 -297.22 -2.12%

Hang Seng 22,539.25 -1.88 -0.01%

Shanghai Composite 2,081.88 -18.26 -0.87%

FTSE  6,486.78 -100.65 -1.53%

CAC  4,084.83 -29.37 -0.71%

DAX 8,369.13 -68.99 -0.82%

Crude oil $107.44 +0.55%

Gold $1323.20 -0.76%

First-time claims for U.S. unemployment benefits fell by more than expected in the week ended August 10th, according to a report released by the Labor Department on Thursday, with jobless claims falling to their lowest level in over five years.

The Labor Department said initial jobless claims fell to 320,000, a decrease of 15,000 from the previous week's revised figure of 335,000. Economists had expected jobless claims to edge down to 330,000 from the 333,000 originally reported for the previous week.

With the bigger than expected decrease, initial jobless claims fell to their lowest level since hitting 316,000 in the week ended October 6, 2007.

EUR/USD

Offers $1.3410/20, $1.3390/400, $1.3370, $1.3345/50, $1.3310/20

Bids $1.3285/80, $1.3250, $1.3235/30, $1.3215-00, $1.3190

GBP/USD

Offers $1.5680, $1.5640/50, $1.5615/20, $1.5595/60

Bids $1.5500, $1.5485/80, $1.5455/50, $1.5420, $1.5405/00, $1.5390

AUD/USD

Offers $0.9300, $0.9250, $0.9220/25, $0.9200/05

Bids $0.9100, $0.9085/80, $0.9050, $0.9020, $0.9000

EUR/GBP

Offers stg0.8665, stg0.8640/45, stg0.8620/30, stg0.8580/85

Bids stg0.8520, stg0.8500, stg0.8485/80, stg0.8470

EUR/JPY

Offers Y131.20, Y131.00, Y130.45/50

Bids Y129.50, Y129.25/20, Y129.00, Y128.80

USD/JPY

Offers Y99.00, Y98.50, Y98.00/10

Bids Y97.50, Y97.20, Y97.00, Y96.85/80, Y96.50

European stocks dropped from a 12-week high as companies from Zurich Insurance Group AG to Hennes & Mauritz AB fell after posting disappointing results.

The Stoxx Europe 600 Index slipped 0.6 percent to 306.87 at 8:48 a.m. in London. The equity benchmark rose to its highest level since May 22 yesterday as a report showed the euro area’s economy returned to growth in the three months through June after six consecutive quarters of contraction. It has still rallied 11 percent since reaching a low on June 24. Standard & Poor’s 500 Index futures retreated 0.2 percent today, while the MSCI Asia Pacific Index slipped 0.8 percent.

Zurich Insurance declined 2.9 percent to 244.70 Swiss francs after posting second-quarter net income of $789 million. That missed the $823.8 million average projection of analysts in a survey. The insurer said the floods in central Europe in May and June cost it $140 million.

Hennes & Mauritz lost 1.4 percent to 242.60 kronor after saying same-store sales fell 1 percent in July from the same month a year earlier. The average estimate in an SME Direkt survey of analysts had called for an increase of 0.8 percent.

Oriflame slid 4.6 percent to 206.50 kronor after reporting earnings before interest, taxes, depreciation and amortization of 42.2 million euros ($56 million) and sales of 360 million euros in the second quarter. Analysts on average had forecast Ebitda of 46.7 million euros and revenue of 367 million euros for the period.

FTSE 100 6,557.13 -30.30 -0.46%

CAC 40 4,105.79 -8.41 -0.20%

DAX 8,400.73 -37.39 -0.44%

Inflation expectations among Australian consumers declined in August, a survey by the Melbourne Institute showed Thursday.

The expected inflation rate fell to 2.3 percent in August from 2.6 percent in July. The expectations remained within the Reserve Bank of Australia's target of 2-3 percent.

The fall in the expected inflation rate, despite the latest cut in cash rate and the recent depreciation of the Australian dollar, signals that consumers expect weak to moderate economic activity in the coming months, Viet Nguyen, a Research Fellow at the Melbourne Institute, said.

EUR/USD $1.3140, $1.3250, $1.3275, $1.3305, $1.3350

USD/JPY Y97.10, Y98.10, Y98.90, Y99.50, Y99.75

EUR/JPY Y131.85

GBP/USD $1.5425, $1.5515, $1.5545

EUR/GBP stg0.8550, stg0.stg0.8640, stg0.8650

USD/CHF Chf0.9240

EUR/CHF Chf1.2395, Chf1.2600

AUD/USD $0.9100, $0.9180

USD/CAD C$1.0185

Asian stocks fell, snapping the regional benchmark’s longest winning streak in six weeks, amid mixed corporate earnings across the region and after economists predicted the Federal Reserve will reduce stimulus next month.

Nikkei 225 13,752.94 -297.22 -2.12%

Hang Seng 22,494.53 -46.60 -0.21%

S&P/ASX 200 5,152.37 -5.05 -0.10%

Shanghai Composite 2,081.88 -18.26 -0.87%

Sony Corp., an electronics maker that gets 68 percent of sales overseas, slid 1.6 percent, pacing declines among Japanese exporters as the yen rose.

Thai Beverage Pcl., a brewer controlled by billionaire Charoen Sirivadhanabhakdi, sank 5.2 percent in Singapore after posting lower sales and profit.

Li & Fung Ltd., the world’s biggest supplier of toys and clothes to retailers including Wal-Mart Stores Inc., jumped 12 percent in Hong Kong after saying business is recovering.

01:00 Australia Consumer Inflation Expectation August +2.6% +2.3%

The dollar declined versus most of its 16 major peers after a U.S. central bank official cautioned against excessive optimism over the economy.

The Bloomberg U.S. Dollar Index fell after Federal Reserve Bank of St. Louis President James Bullard said yesterday policy makers should be careful in changing course based solely on their economic forecasts. Federal Open Market Committee forecasts “have tended to be too optimistic over the last several years,” Bullard said in a speech in Paducah, Kentucky. “Given this experience, I think caution is warranted in taking policy action based on forecasts alone.”

Economists predict a report today will show gains in U.S. consumer prices slowed last month. The Labor Department may say today inflation in the world’s biggest economy, as measured by consumer prices, probably climbed 0.2 percent in July after a 0.5 percent gain a month earlier, a separate Bloomberg News poll showed.

The yen gained as Japanese stocks slid after a government official said Prime Minister Shinzo Abe hasn’t given instructions to lower the nation’s corporate tax. Japan’s Chief Cabinet Secretary Yoshihide Suga said today Abe hasn’t given instructions to lower the corporate tax. The Nikkei newspaper reported on Aug. 13 that the prime minister has called for a study to reduce the levy.

EUR / USD: during the Asian session the pair rose to $ 1.3310

GBP / USD: during the Asian session the pair rose to $ 1.5540

USD / JPY: during the Asian session the pair fell to Y97.55

The UK calendar sees the release of the July retail sales data at 0830GMT. Private sector surveys point to strong retail sales growth in July, with the aggressive summer discounting on footwear and clothing set to have boosted volumes. The near month-long heatwave is also seen boosting sales. Analysts are looking for a total month on month increase of 0.9% and an annualised rise of 2.8%.

Change % Change Last

GOLD 1,334.00 12.80 0.97%

OIL (WTI) 106.91  0.08 0.07%

Nikkei 225 14,050.16 183,16 1,32%

S & P / ASX 200 5,157.42 -0.28 -0.01%

Shanghai Composite -6,02 -0,29 2,100.14%

FTSE 100 6,587.43 -24.51 -0.37%

CAC 40 4,114.2 +21.70 +0.53%

DAX 8,438.12 +22.36 +0.27%  

Dow -113.66 15,337.35 -0.74%

Nasdaq -15.17 3,669.27 -0.41%

S&P -8.83 1,685.33 -0.52%

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

EUR/USD $1,3257 -0,02%

GBP/USD $1,5504 +0,37%

USD/CHF Chf0,9350 +0,20%

USD/JPY Y98,00 -0,24%

EUR/JPY Y129,94 -0,26%

GBP/JPY Y151,93 +0,36%

AUD/USD $0,9124 +0,27%

NZD/USD $0,8030 +0,81%

USD/CAD C$1,0339 -0,03%

01:00 Australia Consumer Inflation Expectation August +2.6% +2.3%

08:30 United Kingdom Retail Sales (MoM) July +0.2% +0.7%

08:30 United Kingdom Retail Sales (YoY) July +2.2% +2.4%

12:15 U.S. FOMC Member James Bullard Speaks

12:30 U.S. NY Fed Empire State manufacturing index August 9.46 10.2

12:30 U.S. Initial Jobless Claims August 333 334

12:30 U.S. Capacity Utilization July 77.8% 77.9%

12:30 U.S. CPI, m/m July +0.5% +0.2%

12:30 U.S. CPI, Y/Y July +1.8% +2.0%

12:30 U.S. CPI excluding food and energy, m/m July +0.2% +0.2%

12:30 U.S. CPI excluding food and energy, Y/Y July +1.6% +1.7%

13:00 U.S. Total Net TIC Flows June 56.4

13:00 U.S. Net Long-term TIC Flows June -27.2 31.3

13:15 U.S. Industrial Production (MoM) July +0.3% +0.5%

14:00 U.S. Philadelphia Fed Manufacturing Survey August 19.8 15.6

14:00 U.S. NAHB Housing Market Index August 57

14:30 Canada Bank of Canada Review Quarter III