Weak data on new home sales have caused a sharp decline in the U.S. currency. As shown by the U.S. Census Bureau, by the end of July home sales in the primary market in the U.S. were at the level of 394 thousand units annualized seasonally adjusted. The figure is well below the average forecast of analysts, which was at the level of 492 thousand value for June was revised to 455 thousand from 497 thousand

Given the revised data, housing sales in the primary market in the U.S. declined in May and July, and showed only a small increase in April and June. Despite the downward revision, sales are still 6.0% higher than the same period last year.

The pace of sales fell in all four regions of the country, with double-digit declines were observed in the Southern and Western regions.

The supply of new homes rose 4.3% to 171 thousand, which corresponds to stock up sales of 5.2 months. Last month the figure was at 4.3 months. Growth stocks and a drop in sales indicates a significant fall in demand in the market.

The euro also provided data on consumer confidence in the eurozone. The consumer confidence index in August rose to -15.6 from -17.4 - up to the highest level since July 2011, exceeding economists' expectations at 16.5. The index continues to grow for nine months.

Also today, the published data on the GDP of Germany, which came in line with expectations. The German economy is bad starting the year in the 2nd quarter, rebounded sharply thanks to increased investment and revitalization of consumption. This is evidenced by the data presented in the Bureau of Statistics on Friday. GDP in the 2nd quarter, up 0.7% compared to the previous quarter, a rise of 2.9% year on year. These data support the first official estimates published last week. This means that the German economy in the 2nd quarter was the fastest growing economies of the developed countries. Such data will help Angela Merkel led the conservative coalition, which, according to the latest polls, already confident ahead of competitors in the upcoming September elections.

It is worth noting that the main event was the publication of the European session, the revised GDP data for the UK for the 2nd quarter. According to updated figures from the Office for National Statistics, UK, UK GDP growth in the 2nd quarter was at 0.7% q / q and 1.5% y / y, which was higher than the pre-assessment at the level of 0.6% q / q and 1.4% y / y Today's data suggest that the UK economy is growing at a faster pace than expected by most economists and analysts.

The primary reaction of sterling has been rising. The pair GBP / USD after the release of the GDP has grown, almost reaching the level of $ 1.5640. However, the following reaction sterling was more significant decline, resulting in at least been updated this week against the dollar.

European stocks advanced for a second day, trimming the biggest weekly decline in two months, as euro-area consumer confidence and U.K. economic growth exceeded forecasts.

Euro-area consumer sentiment rose to the highest level in two years in August, European Commission data showed today. The index of household confidence increased to minus 15.6 from minus 17.4 in July. The median forecast of economists surveyed by Bloomberg had called for minus 16.5.

U.K. gross domestic product increased 0.7 percent in the second quarter from the previous period, when it rose 0.3 percent, the Office for National Statistics said in London. That compared with an initial estimate of 0.6 percent.

ECB Governing Council Member Ewald Nowotny said late yesterday that good economic reports from the euro zone mean the central bank has no reason to lower interest rates further from their record low of 0.5 percent.

Releases this month have shown German manufacturing expanded at a faster-than-expected pace in July, while the gross domestic product of the 17 countries in the euro area increased in the three months through June, following six quarters of contraction.

National benchmark indexes advanced in 15 of the 18 western European markets today. The U.K.’s FTSE 100 climbed 0.7 percent, Germany’s DAX increased 0.2 percent and France’s CAC 40 added 0.3 percent.

A gauge of mining companies was among the best performers in the 19 industry groups in the Stoxx 600. Glencore rose 1 percent to 317 pence and Rio Tinto, the world’s second-biggest mining company, added 0.8 percent to 3,069 pence. Anglo American Plc advanced 1.3 percent to 1,524.5 pence.

FLSmidth surged 9.8 percent to 320.80 kroner, the biggest jump since November 2010. The company said it will cut 1,100 jobs and close down more than 20 global locations in an effort to reduce costs, after second-quarter earnings trailed analysts’ projections.

“The cost-cutting programme is more aggressive than we expected,” Nordea Bank AB analyst Patrik Setterberg wrote in a report.

Croda climbed 4.3 percent to 2,677 pence after Deutsche Bank raised its recommendation on the world’s second-biggest maker of cosmetic ingredients to buy from hold, saying it expects sales growth to improve in the second half of the year and 2014.

ING Groep NV rose 2.4 percent to 8.78 euros after Morgan Stanley raised its rating on the shares to overweight, similar to buy, from equal weight, saying the Dutch lender’s net-interest margin is likely to increase.

Bachem Holding AG rallied 3.4 percent to 46.95 Swiss francs after the maker of pharmaceutical ingredients reported first-half net income of 10.4 million francs ($11.3 million), from 7.3 million francs a year earlier.

Yara International ASA, the largest publicly traded maker of nitrogen fertilizer, slipped 2.8 percent to 250.60 kroner. Deutsche Bank AG cut its rating on the shares to sell from hold, saying it expects supply and demand in the global urea market to weaken in the second half of the year and beyond.

West Texas Intermediate crude rose for a second day on signs of accelerating economic growth in Europe and unrest in the Middle East.

Futures climbed as much as 1.3 percent. Euro-area consumer confidence increased more than economists estimated in August, the European Commission in Brussels said in a preliminary report today. Israel said it bombed a site in Lebanon today in response to the first rocket attack from that country in almost two years, adding to the turmoil gripping the Middle East.

WTI crude for October delivery climbed 95 cents, or 0.9 percent, to $105.98 a barrel at 10:40 a.m. on the New York Mercantile Exchange. Prices are down 1.4 percent this week. The volume of all futures traded was about 37 percent below the 100-day average.

Brent oil for October settlement advanced $1.04, or 0.9 percent, to $110.94 a barrel on the London-based ICE Futures Europe exchange. Trading of futures was 2.4 percent below the 100-day average. The European benchmark crude traded at a premium of $4.96 to WTI, compared with $4.87 at yesterday’s close.

Gold rose to a two-month high against the dollar after a sharp decline the release of statistics on the U.S. housing market.

As shown by the U.S. Census Bureau, by the end of July home sales in the primary market in the U.S. were at the level of 394 thousand units annualized seasonally adjusted. The figure is well below the average forecast of analysts, which was at the level of 492 thousand value for June was revised to 455 thousand from 497 thousand

Given the revised data, housing sales in the primary market in the U.S. declined in May and July, and showed only a small increase in April and June. Despite the downward revision, sales are still 6.0% higher than the same period last year.

The pace of sales fell in all four regions of the country, with double-digit declines were observed in the Southern and Western regions.

The supply of new homes rose 4.3% to 171 thousand, which corresponds to stock up sales of 5.2 months. Last month the figure was at 4.3 months. Growth stocks and a drop in sales indicates a significant fall in demand in the market.

The cost of the October gold futures on COMEX today rose to $ 1397.40 per ounce.

EUR/USD $1.3200, $1.3225, $1.3315, $1.3335, $1.3400, $1.3450

USD/JPY Y97.35, Y97.40, Y97.45, Y97.65, Y98.00, Y98.50, Y100.00

EUR/JPY Y130.50, Y131.00, Y132.00

GBP/USD $1.5500, $1.5570, $1.5575, $1.5600

USD/CHF Chf0.9300

AUD/USD $0.8925, $0.9000, $0.9050, $0.9125, $0.9250

NZD/USD $0.7950

USD/CAD C$1.0440, C$1.0450, C$1.0460, C$1.0465, C$1.0515

U.S. Stock futures were little changed as investors awaited a report on sales of new houses.

Global Stocks:

Nikkei  13,660.55 +295.38 +2.21%

Hang Seng 21,863.51 -31.89 -0.15%

Shanghai Composite 2,057.46 -9.67 -0.47%

FTSE  6,482.94 +36.07 +0.56%

CAC  4,057.8 -1.32 -0.03%

DAX 8,411.95 +14.06 +0.17%

Crude oil $104.93 -0.10%

Gold $1371.00 +0.01%

Upgrades:

Downgrades:

Other:

CRT Capital raises their Boeing (BA) target to $123 from $105

EUR/USD $1.3200, $1.3225, $1.3315, $1.3335, $1.3400, $1.3450

USD/JPY Y97.35, Y97.40, Y97.45, Y97.65, Y98.00, Y98.50, Y100.00

EUR/JPY Y130.50, Y131.00, Y132.00

GBP/USD $1.5500, $1.5570, $1.5575, $1.5600

USD/CHF Chf0.9300

AUD/USD $0.8925, $0.9000, $0.9050, $0.9125, $0.9250

NZD/USD $0.7950

USD/CAD C$1.0440, C$1.0450, C$1.0460, C$1.0465, C$1.0515

Asian stocks rose, paring the benchmark equity gauge’s biggest weekly decline in two months, after reports from Europe to the U.S. boosted confidence in the economic recovery and the yen weakened against the dollar.

Nikkei 225 13,660.55 +295.38 +2.21%

Hang Seng 21,863.51 -31.89 -0.15%

S&P/ASX 200 5,123.36 +47.61 +0.94%

Shanghai Composite 2,057.46 -9.67 -0.47%

Asia’s largest carmaker Toyota Motor Corp. , which gets about 75 percent of its sales outside Japan, climbed 2.8 percent as the yen touched the lowest level in nearly three weeks against the dollar.

Henderson Land Development Co. advanced 2.6 percent in Hong Kong after the homebuilder controlled by billionaire Lee Shau-kee posted higher sales.

Amada Co., a Japanese maker of metal-cutting machines, jumped 5.3 percent after a report operating profits will surge 150 percent.

---

The yen slid to a month low against the euro on speculation Bank of Japan Governor Haruhiko Kuroda will reiterate the case for unprecedented monetary easing at the Federal Reserve’s annual conference in Jackson Hole, Wyoming. Kuroda will take part in a panel discussion tomorrow, along with Alexandre Tombini, Brazil’s central bank head, at the three-day Jackson Hole conference. The BOJ doubled its monthly bond purchases to more than 7 trillion yen ($70.7 billion) in April to stoke 2 percent inflation in two years.

The 17-nation euro extended gains against the yen after European Central Bank Governing Council member Ewald Nowotny said good economic news removed the need for further interest-rate cuts.

The U.S. currency was poised for a weekly gain against most major peers as economic data supported the case for the Fed to reduce stimulus.

The pound was set for a weekly drop before Bank of England Governor Mark Carney speaks next week. Carney will deliver a speech on Aug. 28 in Nottingham, England. BOE policy maker Martin Weale said it may be “sensible” for the central bank to extend asset purchases in some circumstances, according to an interview published on the Daily Telegraph website on Aug. 21.

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

GBP / USD: during the Asian session the pair traded in the range of $ 1.5575-05

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

Friday sees a quieter data calendar and many will be looking ahead to the Federal Reserve's annual Symposium in Jackson Hole. Early German data sees the released of the detailed Q2 GDP numbers, the Maastricht debt ratios for the first half and the June construction orders data. Back in Europe, at 1330GMT, the Belgium August Business sentiment data will be published, to be followed at 1400GMT by the EMU August flash consumer confidence numbers. UK data to be released at 0830GMT includes the second reading of the UK Q2 GDP data. Also at 0830GMT in the UK, the June Index of Services and the July BBA Lending Data numbers will cross the wires. Media chatter about housing market bubbles is premature.

Change % Change Last

GOLD 1,371.20 0.60 0.04%

OIL (WTI)  105.10 1.25 1.20%

Nikkei 225 -0,44 -59,16 13,365.17%

Hang Seng 21,875.65 57,92 0,27%

S & P / ASX 200 5,075.75 -24.24 -0.48%

Shanghai Composite -5,84 -0,28 2,067.12%

FTSE 100 6,446.87 +56.03 +0.88%

CAC 40 4,059.12 +44.03 +1.10%

DAX 8,397.89 +112.48 +1.36%

DJIA 14,963.70 66.19 0.44%

S&P 500 1,656.96  14.16 0.86%

NASDAQ 3,638.71  38.92  1.08%

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

EUR/USD $1,3356 -0,01%

GBP/USD $1,5584 -0,46%

USD/CHF Chf0,9235 +0,15%

USD/JPY Y98,75 +1,09%

EUR/JPY Y131,90 +1,06%

GBP/JPY Y153,90 +0,62%

AUD/USD $0,9013 +0,42%

NZD/USD $0,7836 -0,19%

USD/CAD C$1,0519 +0,39%

06:00 Germany GDP (QoQ) (Finally) Quarter II +0.7% +0.7%

06:00 Germany GDP (YoY) (Finally) Quarter II +0.9% +0.9%

08:30 United Kingdom BBA Mortgage Approvals July 37.3 39.2

08:30 United Kingdom Business Investment, q/q Quarter II -1.9% +0.6%

08:30 United Kingdom Business Investment, y/y Quarter II -16.5%

08:30 United Kingdom GDP, q/q (Revised) Quarter II +0.6% +0.6%

08:30 United Kingdom GDP, y/y (Revised) Quarter II +1.4% +1.4%

12:30 Canada Consumer price index, y/y July +1.2% +1.4%

12:30 Canada Consumer Price Index m / m July 0.0% +0.1%

12:30 Canada Bank of Canada Consumer Price Index Core, m/m July -0.2% 0.0%

12:30 Canada Bank of Canada Consumer Price Index Core, y/y July +1.3% +1.5%

12:30 U.S. Jackson Hole Symposium

13:00 Belgium Business Climate August -12.0 -11.1

14:00 Eurozone Consumer Confidence August -17.4 -16.5

14:00 U.S. New Home Sales July 497 492