The dollar rose sharply against the euro, while restoring all previously lost ground, despite the lack of drivers for this move. Note that initially the pressure on the dollar was weak data on the number of Housing Starts. As it became known, the total number of housing starts in the U.S. rose by 5.9% in July compared with the previous month to a seasonally adjusted annual rate of 896,000 units. Construction of multi-family housing, including apartments, rose 26%, while single-family housing declined Share 2.2%. Compared with a year earlier, the whole establishment of new homes rose by 20.9%. Economists forecast that overall housing starts will rise by 8.9%.

Add that are not pleased as the data and consumer confidence. The preliminary results of the studies that were presented Thomson-Reuters and the Michigan Institute in August, U.S. consumers are feeling more pessimistic about the economy than had been recorded in the last month. According to a report in the August consumer sentiment index fell to 80.0, compared with a final reading for July at 85.1. It is worth noting that according to the average estimates of experts, the index should have grown to the level of 85.6.

However, even this did not prevent the negative dollar rise sharply. We add that the central theme for the dollar remains the impact of news on the likelihood of reducing the redemption of bonds by the Fed. Today's news, rather, added questions about whether the Fed reason for this step, as the index of consumer confidence in the U.S. declined significantly in August compared with July.

The cost of the Canadian dollar fell against the U.S. dollar, which was due to the expectation of the release of data for Canada, which had a worse than expected.

Statistics Canada reported Friday that shipments in the manufacturing sector fell unexpectedly in June, showing the fourth drop in six months, due to lower sales of jewelry and silver, metal, and wood products.

Deliveries in the manufacturing sector decreased by 0.5% to 48,220 million Canadian dollars ($ 46.8 billion), after a revised down 0.6% gain in May. Economists had expected delivery in the manufacturing sector of the industry will grow by 0.5% after rising 0.7% the previous month, which was originally reported.

Also, the report showed that inventories in the manufacturing sector in June fell by 0.2% compared with May, and unfilled orders in the manufacturing sector grew in June by 2.7% compared to the previous month.

New orders in the manufacturing sector in June rose by 2.5% compared with May. The ratio of reserves / supply to the industrial sector in Canada in June of 1.42:1.

European stocks gained, after the Stoxx Europe 600 Index dropped the most in more than five weeks yesterday, as a gauge of mining companies climbed, outweighing losses by airlines.

The Stoxx 600 added 0.3 percent to 306.19 at 4:30 p.m. in London, dragging the gauge to a 0.1 percent advance this week. The equity benchmark slid 1.1 percent yesterday as better-than-forecast U.S. jobless claims fueled speculation that the Federal Reserve will soon taper its bond-buying program.

The Stoxx 600 rose to a 12-week high on Aug. 14 as a report showed the euro area’s economy returned to growth in the three months through June after six consecutive quarters of contraction. The equity benchmark has rallied 11 percent since reaching a low on June 24 as central banks signaled interest rates will remain low for an extended period.

In the U.S., a Commerce Department report showed that housing starts rose to an annualized rate of 896,000 in July. Economists surveyed had predicted a rate of 900,000. In a sign construction activity will increase, building permits climbed to a 943,000 rate from 918,000 in June.

A separate release showed a gauge of consumer sentiment in the world’s largest economy unexpectedly declined in August. The preliminary reading of the Thomson Reuters/University of Michigan index fell to 80 from 85.1 in July, missing the 85.2 median estimate of economists.

National benchmark indexes climbed in 12 of the 18 western-European markets today.

FTSE 100  6,499.99 +16.65 +0.26% CAC 40 4,123.89 +30.69 +0.75% DAX 8,391.94 +15.65 +0.19%

Maersk’s B-shares surged 9.7 percent to 49,080 kroner. The group will probably post full-year net income of $3.5 billion, excluding impairment losses and divestment gains, it said in a statement today. That compares with the company’s previous forecast of $2.9 billion.

Fresnillo Plc added 4.2 percent to 1,172 pence and Randgold Resources Ltd. rallied 5.6 percent to 5,165 pence after gold surged to its highest price in almost two months and silver jumped to a three-month high after the close of European trading yesterday.

Opera Software ASA jumped 13 percent to 54 kroner, the highest price since its initial public offering in 2004, after predicting earnings before interest and taxes of $58 million to $64 million for the full year. The Norwegian maker of Internet browsers had forecast $52 million to $62 million. The company still posted earnings per share for the second quarter that missed analysts’ estimates.

Lufthansa retreated 1.3 percent to 14.20 euros. Morgan Stanley lowered its rating on the shares to equal weight from overweight, meaning investors should not buy more of the stock. The brokerage reduced its forecasts for the airline in 2013 because of weak markets in Asia and the Middle East.

Ryanair Holdings Plc declined 2.1 percent to 6.60 euros in Dublin trading.

Telekom Austria AG (TKA) slid 2.7 percent to 5.57 euros after Format reported that the company may sell 1 billion euros ($1.3 billion) of new equity. Shareholder America Movil SAB wants to use the capital increase to fund investments, according to the magazine, which didn’t say how it got the information.

Prices for crude oil rose WT, due to growing concerns about the market situation in Egypt and the possible disruption of supplies of raw materials in the Middle East. Add that Egypt itself is not a major producer and exporter of oil. However, through the Suez Canal, which is controlled by the State, is of the order of 7% of all oil tanker deliveries. In Egypt maintained a state of emergency. On Wednesday a wave of unrest due to overclocking camps of supporters of the ousted government of President-Islamist Mohammed Morsi. Killed more than 600 people, about four thousand were injured.

In parallel, the market continued to be influenced by expectations of further Fed action in the framework of monetary policy.

With regard to the data presented today, that is to provide the American report, which showed that the number of housing starts in the U.S. rose in July, reflecting the growth in the sector of apartment buildings, which was stronger than the slowdown in the sector of single-family homes.

According to the report, the number of housing starts rose in July by 5.9% to 896.000 on an annualized basis, compared with 846,000 in June. According to the forecasts of economists number of housing starts should have been 905.000. Growth in the construction of apartment buildings was 26%, a decline of single-family construction - 2.2%.

The builders are limited in the proposal due to the lack of materials and sites, as they are trying to increase prices and profits in the industry. Further growth in employment will be required to support sustainable demand.

In addition, it was reported that the number of building permits in July rose to 943,000 year on year, also due to significant growth in the sector of apartment buildings. Expected to rise to 945,000, after the earlier figure was 918,000.

The cost of the September futures on U.S. light crude oil WTI (Light Sweet Crude Oil) rose to $ 107.98 a barrel on the New York Mercantile Exchange.

September futures price for North Sea Brent crude oil mixture fell to $ 110.17 a barrel on the London exchange ICE Futures Europe.

Gold prices rose slightly today, rising at the same time to two-month high, and fixed the biggest weekly gain in a month. Note that this dynamic is the fact that today presented a weaker-than-expected U.S. data increases the likelihood that the Federal Reserve will start to change their policies.

As shown by the data, the total number of housing starts in the U.S. rose in July, although the drop in single-family housing better reflects the great obstacles in stewards.

The total number of housing starts in the U.S. rose by 5.9% in July compared with the previous month to a seasonally adjusted annual rate of 896,000 units, the Commerce Department reported Friday. Construction of multi-family housing, including apartments, rose 26%, while single-family housing declined Share 2.2%. Compared with a year earlier, the whole establishment of new homes rose by 20.9%. Add that many economists had forecast that overall housing starts will rise by 8.9%.

The report reflected a mixed picture for the construction of housing. Construction of houses has increased in two of the last three months, potentially indicating a strong housing market and economic recovery. Nevertheless, an increase has been largely due to an increase in a multi sector is volatile category that can conceal the demand.

Meanwhile, many traders say that from a technical point of view, overcoming resistance at $ 1,350 and adds interest to purchase.

The data also showed that the stock of gold in the SPDR Gold Trust fell yesterday by 0.3 million tons to 912.92 million tons. Note that rare inflows to the fund have been seen only twice in the last six sessions, but stocks remain at four-year lows.

Analysts also expect that the level of demand in India will grow in the coming weeks, in anticipation of the season of weddings and gala celebrations, despite import restrictions by the government.

The cost of the October gold futures on COMEX today rose to $ 1366.40 per ounce.

EUR/USD $1.3200, $1.3250, $1.3270, $1.3300, $1.3350, $1.3395, $1.3400

USD/JPY Y97.00, Y97.10, Y97.50, Y98.10, Y99.00, Y98.00, Y98.90

EUR/JPY Y130.00

GBP/USD $1.5400, $1.5500, $1.5650, $1.5675

EUR/GBP stg0.8550

GBP/JPY Y151.25

USD/CHF Chf0.9360

EUR/CHF Chf1.2420, Chf1.2430, Chf1.2550

AUD/USD $0.9100, $0.9105, $0.9150, $0.9160/65, $0.9200

USD/CAD C$1.0375, C$1.0410

U.S. stock-index futures rose slightly as data showed housing starts climbed in July.

Global Stocks:

Nikkei  13,650.11 -102.83 -0.75%

Hang Seng 22,517.81 -21.44 -0.10%

Shanghai Composite 2,068.45 -13.43 -0.64%

FTSE  6,480.05 -3.29 -0.05%

CAC  4,093.15 -0.05 0.00%

DAX 8,344.37 -31.92 -0.38%

Crude oil $107.42 +0.08%

Gold $1364.70 +0.28%

Upgrades:

Downgrades:

Alcoa (AA) downgraded to Underperform from Neutral at BofA/Merrill

Other:

European stocks fluctuated, after the Stoxx Europe 600 Index dropped the most in more than five weeks yesterday, as investors awaited reports on the U.S. housing market.

Telekom Austria slid 3.4 percent to 5.53 euros after Format reported that the company may sell 1 billion euros ($1.3 billion) of new equity. Shareholder America Movil SAB wants to use the capital increase to fund investments, according to the magazine, which didn’t say how it got the information. Telekom Austria spokesman Peter Schiefer said the company does not need to sell new shares.

ASML, Europe’s largest semiconductor-equipment supplier, lost 1.2 percent to 68.46 euros. Applied Materials forecast fiscal fourth-quarter revenue that missed analysts’ estimates as customers delayed upgrades to their factories. STMicroelectronics NV slipped 2.4 percent to 6.32 euros.

Portugal Telecom SGPS SA dropped 1.5 percent to 2.83 euros as Goldman Sachs downgraded the shares to neutral from buy. Worse-than-projected second-quarter results for Brazilian carrier Oi SA have increased the risk that it need more capital, Goldman analysts led by Tim Boddy wrote. Portugal Telecom owns 12.1 percent of the investor group that controls Oi.

FTSE 100 6,477.42 -5.92 -0.09%

CAC 40 4,098.24 +5.04 +0.12%

DAX 8,357.21 -19.08 -0.23%

Eurozone's annual inflation stayed unchanged in July as estimated earlier, final data released by the Eurostat showed Friday.

The harmonized index of consumer prices (HICP) increased 1.6 percent on an annual basis in July, which was unchanged from the growth recorded in June. The outcome also matched the preliminary estimates.

Inflation was influenced by a 1.6 percent gain in energy prices, and a 3.5 percent increase in prices of food, alcohol an tobacco. Costs of non-energy industrial goods were higher by 0.4 percent than in July 2012.

Core inflation, excluding food, alcohol and tobacco, was 1.1 percent in July, down from the previous month's 1.2 percent. The latest figure matched flash estimates.

The lowest annual rates were observed in Greece, Bulgaria and Denmark (0.4%), and the highest in Estonia, Romania and the Netherlands.

On a monthly basis, the HICP recorded a 0.5 percent decrease in July, the agency said.

In the European Union (EU), the annual inflation rate was 1.7 percent in July, unchanged from the previous month. Month-on-month, consumer prices dropped 0.4 percent in the EU.

EUR/USD $1.3200, $1.3250, $1.3270, $1.3300, $1.3395, $1.3400

USD/JPY Y97.00, Y97.10, Y97.50, Y98.10, Y99.00, Y98.00, Y98.90

EUR/JPY Y130.00

GBP/USD $1.5400, $1.5500

EUR/GBP stg0.8550

GBP/JPY Y151.25

USD/CHF Chf0.9360

EUR/CHF Chf1.2420, Chf1.2430, Chf1.2550

AUD/USD $0.9100, $0.9105, $0.9150, $0.9160/65, $0.9200

USD/CAD C$1.0375, C$1.0410

Asian stocks fell as investors shied away from riskier assets after an unexpected drop in U.S. jobless claims fueled speculation the Federal Reserve will cut stimulus next month. Chinese shares reversed the biggest intraday surge since March 2009.

Nikkei 225 13,650.11 -102.83 -0.75%

Hang Seng 22,536.76 -2.49 -0.01%

S&P/ASX 200 5,113.86 -38.51 -0.75%

Shanghai Composite 2,068.45 -13.43 -0.64%

Australia & New Zealand Banking Group Ltd.  sank 3 percent after Australia’s third-largest bank by market value forecast interest margins will keep dropping.

Hyundai Merchant Marine Co. soared 6.9 percent in Seoul after North Korea and South Korea agreed to reopen the jointly operated Gaeseong industrial complex.

Chinese stock exchange officials are investigating a spike in the Shanghai Composite Index, which soared as much as 5.6 percent in two minutes.

1:30 Australia RBA Assist Gov Debelle Speaks

The dollar is poised for its biggest weekly gain in a month versus the yen with benchmark Treasury yields at a two-year high before data that may add to signs of an improvement in the U.S. economy.

The U.S. currency is set for a weekly advance against most major peers before reports forecast to show housing starts rebounded and consumer confidence increased to a six-year high. A report from the Commerce Department due today is forecast in a Bloomberg News survey to show housing starts climbed in July to a 900,000 annualized rate from an 836,000 pace in June. In a sign construction will keep advancing, building permits are projected to increase to a 945,000 rate from 918,000 the prior month.

The Thomson Reuters/University of Michigan index of consumer sentiment probably advanced to 85.2 in August from 85.1 in July, according to the median projection of economists surveyed by Bloomberg.

The Federal Reserve will reduce bond purchases next month according to economists in a Bloomberg survey. Fed Chairman Ben S. Bernanke will probably reduce the central bank’s monthly bond purchases next month, 65 percent of economists surveyed by Bloomberg predict. The Federal Open Market Committee’s first step may be small, with monthly purchases tapered by $10 billion to a $75 billion pace, according to the median estimate in the survey of 48 economists conducted Aug. 9-13.

New Zealand’s dollar advanced to the strongest level since June as the nation’s two-year swap rate rose to its highest level since August 2011.

EUR / USD: during the Asian session the pair fell to $ 1.3335

GBP / USD: during the Asian session the pair traded in a range of $ 1.5625-45

USD / JPY: during the Asian session the pair rose to Y97.65

A fairly light data calendar today, the US providing the main points of interest with housing data at 1230GMT and UofM at 1355GMT.

Change % Change Last

GOLD 1,361.60 27.60 2.07%

OIL (WTI) 107.23 0.38 0.36%

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%

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%  

Dow -225.47 15,112.19 -1.47%

Nasdaq -63.15 3,606.12 -1.72%

S&P -24.08 1,661.31 -1.43%

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

EUR/USD $1,3350 +0,70%

GBP/USD $1,5644 +0,89%

USD/CHF Chf0,9258 -0,99%

USD/JPY Y97,26 -0,76%

EUR/JPY Y129,84 -0,08%

GBP/JPY Y152,13 +0,13%

AUD/USD $0,9138 +0,15%

NZD/USD $0,8072 +0,52%

USD/CAD C$1,0302 -0,36%

01:30 Australia RBA Assist Gov Debelle Speaks

08:00 Eurozone Current account, adjusted, bln June 19.6 21.2

09:00 Eurozone Trade Balance s.a. June 14.6 15.3

09:00 Eurozone Harmonized CPI July +0.1% -0.5%

09:00 Eurozone Harmonized CPI, Y/Y (Finally) July +1.6% +1.6%

09:00 Eurozone Harmonized CPI ex EFAT, Y/Y July +1.2% +1.1%

12:30 Canada Manufacturing Shipments (MoM) June +0.7% +0.5%

12:30 Canada Foreign Securities Purchases June 6.74 7.77

12:30 U.S. Building Permits, mln July 0.911 0.945

12:30 U.S. Housing Starts, mln July 0.836 0.905

12:30 U.S. Nonfarm Productivity, q/q (Preliminary) Quarter II +0.5% +0.5%

13:55 U.S. Reuters/Michigan Consumer Sentiment Index (Preliminary) August 85.1 85.6