Euro slightly higher against the U.S. dollar after the data on the index of consumer confidence in the eurozone. The preliminary data that has been presented by the European Commission , this month confidence among euro area has continued to improve. However , experts warn that given the fact that the unemployment rate is still close to record highs , and wages rise more slowly than inflation , we can hardly wait for the sharp increase in costs.

According to the report , a preliminary index of consumer confidence in the euro area rose in September to the level of -14.9 , compared to -15.6 in August , reaching thus the highest level since July 2011 . It should be noted that the improvement in consumer confidence is observed from December 2012 and is a positive development for the currency area. Increased confidence was a factor in the growth of a small amount of consumer spending in the second quarter of this year, helping the economy to return to growth after the reduction , which lasted 18 months.

We also add that the focus of the market participants are widely expected elections in Germany , which will be held this Sunday. Preliminary surveys indicate the prospect of victory, Merkel's center-right party , however, all concerned with the issue of a coalition government. According to the latest Forschungsgruppe Wahlen, Merkel's conservative party won the support of 40 % of the vote , while its current coalition partner - the center-left Party of Free Democrats gained 5.5%. Potential change in the composition of the government is unlikely to significantly affect the policies of Germany, though many fear that the representation of the party " alternative for Germany " in parliament can influence the course of solving problems in the eurozone , for example, through the provision of additional aid to Greece .

It should be noted that in the course of trade and expectations affect performance of the president of the European Central Bank , Mario Draghi , scheduled for next week. At the moment , Draghi , unlike his colleagues Bernanke refrained from printing euros to buy back bonds .

The pound rose against the dollar earlier , which has helped to publish data on Britain. As it became known , the level of the budget deficit in the UK was slightly less than expected in August as government agencies cut back on spending , but official data showed very little evidence of economic recovery , which is reflected in the growth of tax revenues.

The Office for National Statistics said that public sector net borrowing , the budget deficit amounted to 13.2 billion pounds in August, compared with 14.4 billion pounds in the same month last year. Economists had forecast that borrowing would be at 13.5 billion pounds. It should be noted that the government is committed to ensure that the base deficit , which does not include transfers from the Royal Mail and the Bank of England, was not more than 120 billion pounds , or 7.5 percent of GDP this year . When the coalition led by the Conservatives came to power in May 2010 , the deficit was 11 percent of annual GDP.

In addition, the data showed that in the first five months of the current fiscal year, the base deficit was 46.8 billion pounds, while in 2012 over the same period the deficit reached 50.5 billion pounds.

Until recently, the weak economic growth is constrained by tax revenues and complicating government spending cap on social security. In fact, this has led to the fact that the process of deficit reduction slowed in the past year. Economists say the government is now easier to achieve their goals. Government revenues in April-August 2013 rose by 2.8 percent.

European stocks dropped from a five-year high as Federal Reserve Bank of St. Louis President James Bullard said the central bank may decide to reduce bond purchases at its next policy meeting.

The Stoxx Europe 600 Index slipped 0.3 percent to 314.27 at 4:30 p.m. in London after earlier climbing as much as 0.2 percent. The equity benchmark has still risen 0.9 percent this week, extending its rally so far this year to 12 percent, as the Fed refrained from slowing the pace of its bond-buying program at its last policy meeting on Sept. 17-18.

In Germany, an INSA opinion poll published yesterday showed the opposition Social Democrats climbing one percentage point to 28 percent, 10 points behind Chancellor Angela Merkel’s Christian Democratic Union and its sister party the Christian Social Union of Bavaria. Both main groups fell short of a majority with their preferred coalition partners in the survey.

Some polls show the Free Democrats, the junior member of the governing coalition, struggling to reach the 5 percent threshold they need to enter parliament, meaning that Merkel may have to form a government with another party.

National benchmark indexes fell in 10 of the 18 western-European markets. The U.K.’s FTSE 100 slid 0.4 percent and Germany’s DAX slipped 0.2 percent. France’s CAC 40 Index added 0.1 percent.

Adidas slipped 2.9 percent to 80.23 euros after cutting the low end of its profit forecast for 2013 by 7.9 percent. The world’s second-largest sporting-goods maker said the euro’s strength would hurt its sales in the third quarter, while the move to a new distribution center in Russia would reduce the availability of products in shops.

Direct Line dropped 3.2 percent to 211 pence after RBS sold 300 million shares of the insurance company for 210 pence apiece. The bank, which is majority owned by the U.K. government, reduced its holding in Direct Line by 20 percent to 28.5 percent. RBS slipped 1.4 percent to 363.7 pence.

RWE AG retreated 3.9 percent to 24.70 euros after Germany’s second-largest utility said it will reduce its dividend. The company will pay 1 euro ($1.35) on each common and preferred share at its annual general meeting in 2014, half of what it paid this year.

West Texas Intermediate dropped a second day as Libya’s oil production rebounded and the threat of military strikes against Syria receded, damping concern that Middle East supplies may be disrupted.

Futures fell as much as 1 percent and are headed for a second weekly decline. Libyan output yesterday was more than five times higher than earlier this month, according to its oil ministry. Syria will provide information about its chemical weapons and open facilities to inspectors, President Bashar al-Assad said Sept. 18 in an interview with Fox News.

Libyan oil output is set to increase to 800,000 barrels a day, Ibrahim Al Awami, director of measurement at the oil ministry, said by phone from Tripoli yesterday. Supply fell to as low as 150,000 barrels earlier this month, compared with a 2013 high of 1.4 million in April, the International Energy Agency said in a Sept. 12 report.

Oil prices will drop further next week after a U.S.-Russian accord reduced the risk of an American attack on Syria.

WTI crude for October delivery, which expires today, fell 69 cents, or 0.6 percent, to $105.70 a barrel at 11:21 a.m. on the New York Mercantile Exchange. Prices are down 2.3 percent this week. The more-actively traded November contract dropped 47 cents, or 0.4 percent, to $105.39. The volume of all futures traded was about 19 percent below the 100-day average.

Brent oil for November settlement rose 46 cents, 0.4 percent, to $109.22 a barrel on the London-based ICE Futures Europe exchange. Futures are down 3.2 percent this week. Volume was 24 percent lower than the 100-day average. The European benchmark traded at a $3.99 premium to WTI, up from $2.90 at yesterday’s close.

Gold prices decline after the previous two sessions grew by more than 5% after the Fed's decision to maintain the program of bond purchases in the existing volumes.

As a result of bond purchases is pumping liquidity of the financial system , which increases the risk of accelerating inflation and tends to weaken the dollar. Some investors view gold as a hedge against the risk of both of these scenarios.

Gold prices were under pressure for most of this year , while investors believed that the Fed may soon shut down its bond buying program . As of the close of trading on the COMEX on Wednesday , gold futures fell by 22 % since the beginning of 2013.

According to investors and analysts, the Fed's decision is likely to mean that observed in this year's fall in gold prices will pause as market participants revise their inflation forecasts .

Although Fed Chairman Ben Bernanke said Wednesday that for the reduction of asset purchases "there is no fixed calendar," it is expected that the central bank in the next 12 months will begin to phase out its program to purchase bonds worth 85 billion dollars a month. When this happens , gold prices are likely to decline , analysts say.

The cost of the October gold futures on COMEX today dropped to $ 1332.00 per ounce.

EUR/USD $1.3400, $1.3475, $1.3500, $1.3575

USD/JPY Y98.00, Y98.35, Y98.50, Y99.35, Y99.40, Y99.50, Y99.75, Y100.00, Y100.50, Y101.00

GBP/USD $1.5850, $1.6000, $1.6100, $1.6200

AUD/USD $0.9400, $0.9450, $0.9455, $0.9460, $0.9550

EUR/AUD A$1.4300

NZD/USD $0.8220, $0.8235, $0.8300

USD/CAD C$1.0175, C$1.0250, C$1.0325, C$1.0340, C$1.0380

U.S. stock-index futures fell as Federal Reserve Bank of St. Louis President James Bullard said a “small taper” is possible in October.

Global Stocks:

Nikkei  14,742.42 -23.76 -0.16%

Hang Seng 23,502.51 +385.06 +1.67%

FTSE  6,611.7 -13.69 -0.21%

CAC  4,201.42 -4.62 -0.11%

DAX 8,686.8 -7.38 -0.08%

Crude oil $105.77 -0.58%

Gold $1352.00 -1.26%

Data

00:00 China Bank holiday

03:00 New Zealand Credit Card Spending August -0.3% +1.2%

04:00 Japan BOJ Governor Haruhiko Kuroda Speaks

08:30 United Kingdom PSNB, bln August -1.6 11.9 11.5

The euro exchange rate fell slightly against the dollar, but in spite of this, still trading near seven-month high in anticipation of today's publication of macroeconomic data in the euro area. According to the median forecast of economists consumer confidence in Europe will be the highest for the past two years, m grow , probably to minus 14.5 in September from minus 15.6 in the previous month . Experts also predict output growth in the Euro- region, the third consecutive month.

We also add that the focus of the market participants are widely expected elections in Germany , which will be held this Sunday. Preliminary surveys indicate the prospect of victory, Merkel's center-right party , however, all concerned with the issue of a coalition government. According to the latest Forschungsgruppe Wahlen, Merkel's conservative party won the support of 40 % of the vote , while its current coalition partner - the center-left Party of Free Democrats gained 5.5%. Potential change in the composition of the government is unlikely to significantly affect the policies of Germany, though many fear that the representation of the party " alternative for Germany " in parliament can influence the course of solving problems in the eurozone , for example, through the provision of additional aid to Greece .

It should be noted that in the course of trade and expectations affect performance of the president of the European Central Bank , Mario Draghi , scheduled for next week. At the moment , Draghi , unlike his colleagues Bernanke refrained from printing euros to buy back bonds .

The pound rose against the dollar , thus restoring all the previously lost positions , which has helped to publish data on Britain. As it became known , the level of the budget deficit in the UK was slightly less than expected in August as government agencies cut back on spending , but official data showed very little evidence of economic recovery , which is reflected in the growth of tax revenues.

The Office for National Statistics said that public sector net borrowing , the budget deficit amounted to 13.2 billion pounds in August, compared with 14.4 billion pounds in the same month last year. Economists had forecast that borrowing would be at 13.5 billion pounds. It should be noted that the government is committed to ensure that the base deficit , which does not include transfers from the Royal Mail and the Bank of England, was not more than 120 billion pounds , or 7.5 percent of GDP this year . When the coalition led by the Conservatives came to power in May 2010 , the deficit was 11 percent of annual GDP.

In addition, the data showed that in the first five months of the current fiscal year, the base deficit was 46.8 billion pounds, while in 2012 over the same period the deficit reached 50.5 billion pounds.

Until recently, the weak economic growth is constrained by tax revenues and complicating government spending cap on social security. In fact, this has led to the fact that the process of deficit reduction slowed in the past year. Economists say the government is now easier to achieve their goals. Government revenues in April-August 2013 rose by 2.8 percent.

EUR / USD: during the European session, the pair fell to $ 1.3507

GBP / USD: during the European session, the pair fell from $ 1.6065 to $ 1.6015

USD / JPY: during the European session, the pair rose to Y99.62

At 12:30 GMT Canada will release the consumer price index and core consumer price index from the Bank of Canada in August. At 14:00 GMT Eurozone will present indicator of consumer confidence for September.

EUR/USD

Offers $1.3650/60, $1.3600, $1.3570/80, $1.3563

Bids $1.3510/00, $1.3490/80, $1.3455/50, $1.3410/00, $1.3385/80

GBP/USD

Offers $1.6235, $1.6200, $1.6170/80, $1.6145/50, $1.6090/100, $1.6075/80

Bids $1.6022, $1.6005/995, $1.5980, $1.5960/50

AUD/USD

Offers $0.9600, $0.9570/80, $0.9540/50, $0.9525/30, $0.9500, $0.9480

Bids $0.9420, $0.9400, $0.9395/90, $0.9350

EUR/GBP

Offers stg0.8550/55, stg0.8520, stg0.8460/65, stg0.8440/50, stg0.8441

Bids stg0.8400, stg0.8355/50, stg0.8320, stg0.8300

EUR/JPY

Offers Y136.90/7.00, Y136.20/30, Y135.50/60, Y135.00

Bids Y134.20/10, Y133.95, Y133.00-2.95, Y132.60/50, Y132.00, Y131.60

USD/JPY

Offers Y100.80, Y100.60/65, Y100.20/50, Y99.90/0.00, Y99.60/65

Bids Y99.00/8.80, Y98.60, Y98.25/20, Y98.10/00

European stocks were little changed, near a five-year high, as investors awaited Sunday’s federal elections in Germany. U.S. index futures and Asian shares were also little changed.

The Stoxx Europe 600 Index were unchanged at 315.06 as of 9:52 a.m. in London. The equity benchmark has risen 1.2 percent this week, extending its rally so far this year to 13 percent, as the Federal Reserve refrained from reducing its monthly asset purchases.

In Germany, an INSA opinion poll published yesterday showed the opposition Social Democrats climbing one percentage point to 28 percent, 10 points behind Chancellor Angela Merkel’s Christian Democratic Union and its sister party the Christian Social Union of Bavaria. Both main groups fell short of a majority with their preferred coalition partners in the poll.

Some polls show the Free Democrats, the junior member of the governing coalition, struggling to reach the 5 percent threshold they need to enter parliament, meaning that Merkel may have to form a government with another party.

Trading in Europe may be more volatile than usual today as futures and options contracts expire in a process that some traders call quadruple witching.

The Stoxx 600 climbed to its highest level since June 2008 yesterday after the Fed said in a statement that it needs to see more evidence of lasting improvement in the U.S. economy before slowing the pace of its bond-buying program.

The European Commission publishes its gauge of euro-area consumer confidence at 4 p.m. in Brussels today. The index of household sentiment climbed to minus 14.5 in September from minus 15.6 in August, according to the median estimate of economists.

Adidas slipped 4.5 percent to 78.89 euros after cutting the low end of its profit forecast for 2013 by 7.9 percent. The world’s second-largest sporting-goods maker cited the euro’s strength, a glitch in a Russian distribution site and weakness in the global golf market.

Direct Line (DLG) lost 2.5 percent to 212.6 pence. RBS sold 300 million shares at 210 pence apiece in its third sale of a stake in the insurance company, according to a statement. The bank, which is owned by the U.K. government, now owns 28.5 percent of Direct Line. RBS dropped 1 percent to 365.2 pence.

FTSE 100 6,623.35 -2.04 -0.03%

CAC 40 4,209.23 +3.19 +0.08%

DAX 8,701.87 +7.69 +0.09%

EUR/USD $1.3400, $1.3475, $1.3500, $1.3575

USD/JPY Y98.00, Y98.35, Y98.50, Y99.35, Y99.40, Y99.50, Y99.75, Y100.00, Y100.50, Y101.00

GBP/USD $1.5850, $1.6000, $1.6100, $1.6200

AUD/USD $0.9400, $0.9450, $0.9455, $0.9460, $0.9550

EUR/AUD A$1.4300

NZD/USD $0.8220, $0.8235, $0.8300

USD/CAD C$1.0175, C$1.0250, C$1.0325, C$1.0340, C$1.0380

Asian stocks traded at a four-month high as a weaker yen boosted Japanese exporters, while Indian stocks fell after the central bank unexpectedly raised its key interest rate.

Nikkei 225 14,742.42 -23.76 -0.16%

Hang Seng 23,502.51 +385.06 +1.67%

S&P/ASX 200 5,276.7 -18.85 -0.36%

Shanghai Composite 2,191.85 +6.29 +0.29%

Nikon Corp., a camera maker that gets 85 percent of sales outside Japan, climbed 6.4 percent in Tokyo.

Shiseido Co. surged 5.8 percent in Tokyo as Citigroup Inc. recommended buying shares of the cosmetics maker.

State Bank of India, the nation’s largest lender, dropped 5.6 percent.

00:00 China Bank holiday

03:00 New Zealand Credit Card Spending August -0.3% +1.2%

04:00 Japan BOJ Governor Haruhiko Kuroda Speaks

The euro was near a seven-month high before data forecast to show consumer confidence was the strongest in more than two years in the 17-nation currency bloc and manufacturing expanded for a third month. An index of household confidence in the countries that share the euro probably rose to minus 14.5 in September, the highest level since July 2011, from minus 15.6 in the previous month, according to the median estimate of economists surveyed by Bloomberg News before the European Commission releases its preliminary reading today.

The shared currency traded 0.4 percent from an almost four-year high versus the yen before European Central Bank President Mario Draghi speaks next week. Draghi has refrained from printing euros to buy bonds, the opposite strategy to the Fed, which decided to maintain monthly asset purchases at $85 billion at a two-day meeting ended Sept. 18.

Kansas City Fed President Esther George, Minneapolis Fed President Narayana Kocherlakota, and St. Louis Fed President James Bullard will separately give speeches today. George dissented for the sixth Federal Open Market Committee meeting in a row this week, repeating that the policy risks creating financial imbalances.

The yen was poised for weekly losses against 15 of its 16 major peers. Bank of Japan Governor Haruhiko Kuroda said today policy makers will continue to take appropriate action in conducting monetary policy.

EUR / USD: during the Asian session the pair traded in the range of $ 1.3525-40

GBP / USD: during the Asian session, the pair traded in the range of $ 1.6025-45

USD / JPY: during the Asian session the pair traded in the range of Y99.15-55

There is data expected on both sides of the Atlantic Friday, but the day's main events come later, when Fed FOMC members speak. The European data calendar gets underway at 0645GMT, when the French second quarter employment data will be released. At 0800GMT, the Italian June and July industrial orders data will cross the wires. At 1400GMT, the September flash consumer confidence data will cross the wires. Analysts are looking for a reading of -14.5, up modestly from August's -15.6. Later, at 2200GMT, EU Economics and Monetary Affairs Commissioner Olli Rehn will give a speech at Columbia University, in New York.

The UK data starts at 0830GMT, with the release of the BOE External Claims on UK MFIs and the August Public Finances Data will be published. Although the burgeoning economic recovery has not done much to reduce the borrowing figures, August's public finances data may finally start to show some improvement following the pick-up in activity. The deficit is likely to have remained high, however.

GOLD 1,365.50 57.80 4.42%

OIL (WTI) 106.21 -1.86 -1.72%

Nikkei 225 14,766.18 +260.82 +1.80 %

Hang Seng 23,530.46 +413.01 +1.79 %

S&P/ASX 200 5,295.55 +57.41 +1.10 %

Shanghai Composite 2,191.85 +6.29 +0.29 %

FTSE 100 6,625.39 +66.57 +1.01%

CAC 40 4,206.04 +35.64 +0.85%

DAX 8,694.18 +58.12 +0.67%

DJIA 15,636.50 -40.39 -0.26%

S&P 500 1,721.64 -3.88 -0.22%

NASDAQ 3,789.38 5.74 0.15%

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

EUR/USD $1,3528 +0,15%

GBP/USD $1,6029 -0,67%

USD/CHF Chf0,9107 -0,27%

USD/JPY Y99,41 +1,28%

EUR/JPY Y134,52 +1,42%

GBP/JPY Y159,32 +0,61%

AUD/USD $0,9440 -0,57%

NZD/USD $0,8381 +0,45%

USD/CAD C$1,0265 +0,37%

00:00 China Bank holiday

03:00 New Zealand Credit Card Spending August -0.3% +1.2%

04:00 Japan BOJ Governor Haruhiko Kuroda Speaks

08:30 United Kingdom PSNB, bln August -1.6 11.9

12:30 Canada Bank of Canada Consumer Price Index Core, y/y August +1.4% +1.2%

12:30 Canada Consumer Price Index m / m August +0.1% +0.1%

12:30 Canada Consumer price index, y/y August +1.3% +1.1%

12:30 Canada Bank of Canada Consumer Price Index Core, m/m August 0.0% +0.1%

14:00 Eurozone Consumer Confidence September -15.6 -14.5

14:45 United Kingdom MPC Member Weale Speaks

16:30 U.S. FOMC Member Esther George Speaks

16:40 U.S. FOMC Member Tarullo Speaks

16:55 U.S. FOMC Member James Bullard Speaks