The U.S. dollar fell against most major currencies, despite U.S. economic data that beat expectations. The index of U.S. consumer confidence reached its peak at 6 years old, could not raise a dollar. According to the data, in July consumer sentiment index from Thomson-Reuters and the Michigan Institute has risen to the level of 85.1, compared with a final reading for June at 84.1. It is worth noting that according to the average estimates of experts, the index had only grow to the level of 84.0 from 83.9 (preliminary reading for July).

The dollar's decline was due to investors' concern about the possible changes in the Fed's key interest rates to reduce the incentive program. On Thursday, The Wall Street Journal wrote that the meeting to discuss future policy on July 30-31, the central bank will keep bond buying program. However, the management is likely to discuss the revision of its guidelines. The article reported that the central bank may lower the threshold 6.5% unemployment or state that short-term interest rates will not increase with a decrease in inflation. Such steps will point to the fact that the folding program of bond purchases by 85 mldr dollars a month may not come as quickly as investors believed.

The yen higher against the U.S. dollar, which has been associated with the release of the report on Japan. As shown by recent data that has been provided by the Ministry of Internal Affairs and Communications, the core consumer price index in Japan in June rose by 0.4% compared with the same period last year, marking the first increase in more than a year. It is worth noting that according to the average forecasts of experts, the growth of this index was up 0.3%, while in May, the index remained unchanged. This growth has been favorable news for the Bank of Japan, which has launched a two-year program to combat deflation, aimed at achieving inflation of 2%. According to preliminary estimates, in the Tokyo region inflation in July was 0.3%, compared with a forecast of 0.2%. The key consumer price index, which does not include the more volatile food prices, rose 0.3%. However, it should be noted that inflation excluding the prices of petroleum products and food, which, for example, in the United States is used as the main indicator fell by 0.2%.

Published data highlight the successes of the policy pursued by Prime Minister Shinzo Abe. Recall that in April 2013, he launched an ambitious program of quantitative easing, and the main objective is to achieve a 2% inflation rate and the revival of economic growth.

European stocks declined for the first week in five as worse-than-estimated earnings from BASF SE and ABB Ltd. raised concern the economic recovery is faltering.

Manufacturing indexes based on surveys of purchasing managers rose in the U.S. this month and unexpectedly climbed to a level that signals expansion in the euro area, London-based Markit Economics said this week. Chinese manufacturing weakened further in July, according to a preliminary survey of purchasing managers.

National benchmark indexes fell in nine of the 18 western European markets this week. The U.K.’s FTSE 100 slipped 1.1 percent, France’s CAC 40 (CAC) gained 1.1 percent and Germany’s DAX Index dropped 1 percent.

BASF retreated 5.9 percent. The world’s biggest chemical company said second-quarter earnings before interest, taxes and one-time items fell 5.4 percent to 1.83 billion euros ($2.41 billion). The average estimate of analysts in a survey had called for 1.99 billion euros.

ABB slid 4.7 percent. The largest maker of power transformers posted second-quarter net income of $763 million, missing the $779-million average estimate of analysts.

Siemens dropped 4.5 percent. The company, which makes products from power turbines to high-speed trains, said July 25 it no longer predicts an operating profit margin of at least 12 percent of sales in the 12 months through September 2014, citing “lower market expectations.”

Royal KPN NV jumped 19 percent. The largest Dutch phone company agreed to sell its E-Plus mobile-phone business in Germany to Spain’s Telefonica SA in a deal valuing the division at 8.1 billion euros. Telefonica rose 6.7 percent.

West Texas Intermediate crude fell, heading for the first weekly drop in more than a month, on speculation that China’s plans to cut excess manufacturing capacity will reduce fuel consumption.

Futures slid as much as 1.5 percent after China ordered more than 1,400 companies in 19 industries to cut excess production capacity this year, part of efforts to shift toward slower, more-sustainable economic growth. WTI reached $109.32 a barrel on July 19, the highest level since March 2012, on signs the U.S. economy is rebounding and on declining crude supplies.

WTI crude for September delivery fell $1.49, or 1.4 percent, to $104 a barrel at 11 a.m. on the New York Mercantile Exchange. Prices are down 3.7 percent this week. The volume traded was 34 percent below the 100-day average for the time of day.

Brent for September settlement dropped $1.05, or 1 percent, to $106.60 a barrel on the London-based ICE Futures Europe exchange. The European benchmark traded at a $2.60 premium to WTI, compared with $2.16 yesterday. Brent fell below WTI in intraday trading July 19 for the first time since August 2010.

Gold accelerated the decline after strong data on consumer confidence in the U.S. that caused the rise in the dollar.

As shown by the final results of studies that were presented to Thomson-Reuters and the Michigan Institute in July, American consumers feel more optimistic about the economy than had been recorded in the last month. According to the data, in July consumer sentiment index rose to a level of 85.1, compared with a final reading for June at 84.1. It is worth noting that according to the average estimates of experts, the index had only grow to the level of 84.0 from 83.9 (preliminary reading for July).

Despite today's decline, gold prices are expected to grow a third week in a row due to the weak dollar and hopes for maintaining a loose monetary policy for a long time. In three weeks, gold has risen in price by almost 10 percent, showing the best result in nearly two years as the Fed assured the markets that will reduce the incentives only when it is confident in the strength of the U.S. economy.

Stocks of the largest of these funds SPDR Gold Trust on Thursday fell 0.3 percent to 927.36 tonnes - the minimum amount for four years.

Support prices this year has a high demand in the physical market of China. Deliveries to the physical market, according to the Shanghai Gold Exchange since the beginning of the year amounted to 1.198,40 tons compared to 1,140 tons for the whole of last year.

Demand for gold in China this year will be a record 1,000 tons, which will bring it to the top in the world on this indicator instead of India, predicts the World Gold Council. Demand in India is slowing down, as the government tries to limit imports in an effort to reduce the trade deficit.

The cost of the August gold futures on COMEX today dropped to $ 1311.90 per ounce.

EUR/USD $1.3100, $1.3170, $1.3200, $1.3230, $1.3250, $1.3300

USD/JPY Y99.50, Y100.00, Y100.50, , Y101.00/05

GBP/USD $1.5250, $1.5270, $1.5375

EUR/GBP 8575, stg0.8580, stg8600

USD/CHF Chf0.9350

AUD/USD $0.9150, $0.9250, $0.9265, $0.9270, $0.9290, $0.9305

USD/CAD C$1.0235, C$1.0300

U.S. stock-index futures fell as investors weighed corporate earnings before a report on consumer confidence.

Global Stocks:

Nikkei  14,129.98 -432.95 -2.97%

Hang Seng 21,968.95 +67.99 +0.31%

Shanghai Composite 2,010.85 -10.32 -0.51%

FTSE  6,554.26 -33.69 -0.51%

CAC  3,968.22 +12.20 +0.31%

DAX 8,245.11 -53.87 -0.65%

Crude oil $104.40 -1.98%

Gold $1322.50 -0.44%

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Data

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The dollar rose slightly against the euro, despite the lack of publication of economic data. Note also that the markets are still in a state of thin trading before the release of U.S. data 13:55 GMT. This report may show that the final index of consumer sentiment from the Reuters / Michigan fell slightly in July - to the level of 84.0, compared with the June reading at the level of 84.1 points.

In addition, we add that market expectations are that the leadership of the Federal Reserve intends to convince the markets and investors that monetary policy authorities will continue to remain accommodative and supportive. The next meeting of the Federal Open Market Committee will be held on July 30-31. According to preliminary surveys, about 54% of economists believe that Bernanke and his colleagues decided to reduce the amount of monthly purchases of bonds to $ 65 billion from the current $ 85 billion, however, yesterday the Wall Street Journal reported that the authorities may still leave the bond purchase program unchanged and may indicate that the monetary policy will remain soft for a longer period of time.

The yen higher against the U.S. dollar, which has been associated with the release of the report on Japan. As shown by recent data that has been provided by the Ministry of Internal Affairs and Communications, the core consumer price index in Japan in June rose by 0.4% compared with the same period last year, marking the first increase in more than a year. It is worth noting that according to the average forecasts of experts, the growth of this index was up 0.3%, while in May, the index remained unchanged. This growth has been favorable news for the Bank of Japan, which has launched a two-year program to combat deflation, aimed at achieving inflation of 2%. According to preliminary estimates, in the Tokyo region inflation in July was 0.3%, compared with a forecast of 0.2%.

Core CPI, which does not include the more volatile food prices, rose 0.3%.

However, it should be noted that inflation excluding the prices of petroleum products and food, which, for example, in the United States is used as the main indicator fell by 0.2%.

Published data highlight the successes of the policy pursued by Prime Minister Shinzo Abe. Recall that in April 2013, he launched an ambitious program of quantitative easing, and the main objective is to achieve a 2% inflation rate and the revival of economic growth.

EUR / USD: during the European session, the pair fell to $ 1.3260

GBP / USD: during the European session, the pair rose to $ 1.5416

USD / JPY: during the European session, the pair fell to Y98.46

At 13:55 GMT the United States will come indicator of consumer confidence from the University of Michigan in July.

EUR/USD

Offers $1.3340/50, $1.3320/25, $1.3300, $1.3298

Bids $1.3250, $1.3235/25, $1.3200, $1.3165/50

GBP/USD

Offers $1.5530, $1.5500, $1.5470/80, $1.5440/50, $1.5420

Bids $1.5330/20, $1.5305/00, $1.5280, $1.5264

AUD/USD

Offers $0.9400, $0.9380, $0.9360/70, $0.9345/50, $0.9300

Bids $0.9235/30, $0.9220, $0.9210/00, $0.9150, $0.9130/25

EUR/JPY

Offers Y133.00, Y132.45/50, Y132.15/20, Y131.95/00, Y131.55/60

Bids Y130.80/75, Y130.50, Y130.20, Y130.10/00

USD/JPY

Offers Y100.45/50, Y100.15/20, Y100.00, Y95.75/80, Y99.50, Y99.35/40

Bids Y98.49/45, Y98.25/20, Y98.00, Y97.80, Y97.50

EUR/GBP

Offers stg0.8700, stg0.8680/85, stg0.8665, stg0.8645/55, stg0.8643

Bids stg0.8582, stg0.8575/65, stg0.8550

European stocks were little changed as carmakers dropped, offsetting gains by companies from LVMH Moet Hennessy Louis Vuitton SA to Kering SA that reported faster quarterly sales growth. U.S. futures and Asian shares fell.

The Stoxx Europe 600 Index fell 0.1 percent to 299.2 at 10:49 a.m. in London, erasing a gain of as much as 0.7 percent. The equity benchmark has lost 0.2 percent this week. It has rallied 5.3 percent this month as the Federal Reserve said its stimulus program remained flexible.

The Stoxx 600 has rallied 20 percent since European Central Bank President Mario Draghi pledged on July 26 last year to save the euro. Yields on Spanish 10-year bonds have fallen to 4.66 percent from 7.38 percent on the day before Draghi’s speech, and the country’s IBEX 35 (IBEX) stock index has surged 39 percent.

In the U.S., a report may show consumer confidence declined this month. The Thomson Reuters/University of Michigan index of consumer sentiment dropped to 84 from 84.1 in June, according to the median estimate of economists. The initial reading for the measure was 83.9.

LVMH, which owns Louis Vuitton and Christian Dior, rallied 4.5 percent.

Kering, the owner of Gucci, advanced 4.1 percent.

Vivendi SA climbed 2 percent after selling its controlling stake in Activision Blizzard Inc. (ATVI) to the company and a group led by its chief executive officer for $8.17 billion.

ThyssenKrupp AG dropped 3.5 percent amid concern it has failed to make progress in talks to sell its plants in the Americas.

FTSE 100 6,574.45 -13.50 -0.20%      

CAC 40 3,969.71 +13.69 +0.35%

DAX 8,252.74 -46.24 -0.56%

EUR/USD $1.3100, $1.3170, $1.3200, $1.3230, $1.3250, $1.3300

USD/JPY Y99.50, Y100.00, Y100.50, , Y101.00/05

GBP/USD $1.5250, $1.5270, $1.5375

EUR/GBP 8575, stg0.8580, stg8600

USD/CHF Chf0.9350

AUD/USD $0.9150, $0.9250, $0.9265, $0.9270, $0.9290, $0.9305

USD/CAD C$1.0235, C$1.0300

Asian stocks fell, with the regional benchmark index paring its longest weekly winning streak since January. Japanese shares fell the most in six weeks ahead of the busiest week of earnings.

Nikkei 225 14,129.98 -432.95 -2.97%

Hang Seng 21,941.39 +40.43 +0.18%

S&P/ASX 200 5,042.03 +6.41 +0.13%

Shanghai Composite 2,010.85 -10.32 -0.51%

Toyota Motor Corp. lost 3.6 percent as the Japanese carmaker said it was outsold by General Motors Co. for the first time in six quarters.

Advantest Corp. slumped 9.7 percent in Tokyo after the chip-equipment maker posted a wider-than-expected quarterly loss.

BBMG Corp. and Shandong Chenming Paper Holdings Ltd. slid in Hong Kong and mainland trading after they were cited by the Chinese government in a list of companies that must curb capacity this year.

The Dollar Index fell, extending a third straight weekly decline, on speculation the Federal Reserve will reassure investors that policy will remain accommodative at next week’s meeting. The Federal Open Market Committee is scheduled to meet July 30-31 and won’t announce a decision to reduce its monthly bond purchases at that meeting, according to 54 economists surveyed by Bloomberg News from July 18-22. Half of those polled said Fed Chairman Ben S. Bernanke will trim bond buying to $65 billion from the current pace of $85 billion in September. A Wall Street Journal article yesterday said the Fed is likely to revise its guidance on rates when policy makers meet July 30-31.

The U.S. currency has dropped versus 15 of its 16 major counterparts since July 19 before reports next week predicted to show economic expansion in the second quarter and jobs growth in July slowed. A July 31 report will probably show U.S. annualized gross domestic product grew 1 percent in the April-to-June period, slowing from 1.8 percent in the previous three months, according to the median forecast in a Bloomberg poll. Employers added 184,000 jobs this month, after 195,000 additional positions were created in June, a separate poll forecast before the Aug. 2 data release.

The yen erased gains today after Japan’s statistics bureau said consumer prices excluding fresh food rose 0.4 percent from a year earlier in June. The median of estimates in a Bloomberg survey was for a 0.3 percent increase.

EUR / USD: during the Asian session the pair traded in the range of $ 1.3265-90

GBP / USD: during the Asian session the pair traded in the range of $ 1.5370-05

USD / JPY: during the Asian session the pair fell to Y98.65

There is a very quiet calendar on both sides of the Atlantic Friday, with little to suggest any equivalent event to the corresponding day last year, when ECB President Mario Draghi promised to do "whatever it takes" to preserve the euro. The European calendar gets underway at 0600GMT, with the release of the German June import and export prices. French July consumer confidence data will be released at 0645GMT. Analysts are looking for a reading of 79, up from 78. At 1000GMT, the Central Bank of Ireland bulletin for the third quarter is set for release.

Across the Atlantic, Mexico's June trade balance is expected at 1300GMT, with the Bank of Mexico's latest policy meeting minutes expected at 1400GMT. In between, at 1355GMT, the final University of Michigan July Consumer Sentiment data is set to be released. The Michigan Sentiment index is expected to be revised up very slightly to a reading of 84.0 in July from the 83.9 preliminary reading. There were upward revisions to Michigan from the preliminary to final estimates in each of the last six months, with particularly large adjustments in March and April. There were accompanying upward revisions to both the current conditions and expectations readings in each of the last six months as well. The 1-year inflation expectation reading was 3.3% in the preliminary July estimate, up from 3.0% in June.

Change % Change Last

GOLD 1,333.50 14.00 1.06%

OIL (WTI) 105.54 0.15 0.14%

Nikkei 225 -1,14 14,562.93-168 0,35%

Hang Seng -0,30 -66,23 21,902.7%

S & P / ASX 200 5,035.6 0,53 0,01%

Shanghai Composite 2,021.17 -12.16 -0.60%

FTSE 100 6,587.95 -32.48 -0.49%

CAC 40 3,956.02 -6.73 -0.17%

DAX 8,298.98 -80.13 -0.96%

DJIA 15,555.60 13.37 0.09%

S&P 500 1,690.25 4.31 0.26%

NASDAQ 3,605.19 25.59 0.71%

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

EUR/USD $1,3276 +0,60%

GBP/USD $1,5382 +0,44%

USD/CHF Chf0,9301 -0,76%

USD/JPY Y99,27 -1,01%

EUR/JPY Y131,77 -0,43%

GBP/JPY Y152,67 -0,56%

AUD/USD $0,9235 +0,76%

NZD/USD $0,8064 +1,08%

USD/CAD C$1,0283 -0,30%

13:55 U.S.   Reuters/Michigan Consumer Sentiment Index (Finally) July 83.9 84.0