The U.S. dollar has appreciated strongly against the euro, which was associated with increased political uncertainty in Italy, as well as the release of important U.S. data .

It should be noted that after it was reported that the Italian President Napolitano canceled his participation in the conference against the " political instability," the Italian news agency ANSA explained that this is due to the threats of Berlusconi's party quit the coalition if deprived of their leader in the Senate because of allegations of tax fraud . We add that such a mass resignation would be a disaster for the government Letta , which is now trying to cope with the problem of the budget deficit and national debt.

The President Napolitano issued a statement condemning the position of the members of Forza Italia, calling it " institutionally destructive ." He urged parliamentarians to find other ways to express support for the leader, " without calling a threat to the normal functioning of the two Houses of Parliament ."

Add that to the course of trade is also affected by U.S. data that showed that the gross domestic product , the broadest measure of all goods and services produced in the economy, rose by a seasonally adjusted 2.5 % in the second quarter , in line with the preliminary value voiced last month. Economists forecast that the revised second quarter growth rate of 2.7%.

Meanwhile, another report , which was submitted to the Department of Labor showed that the number of Americans applying for first time unemployment benefits remained near six-year low last week , indicating that the improvement in the employment situation , although in recent years the data have been distorted violations in the financial statements . Initial jobless claims , the rate of layoffs, fell by a seasonally adjusted 5,000 to 305,000 in the week ended Sept. 21. Value was lower than the forecast of economists in 319,000 new claims . The Ministry of Labour has revised slightly upwards the number of complaints in the previous week to 310,000 from 309,000 .

The yen fell against all major currencies after the news agency Kyodo News reported that the Japanese government is planning to commit to "immediately" begin a study on the effectiveness of corporate tax rates . The head of the investment department of the Government Pension Investment Fund of Japan (GRIF), which manages 121 trillion yen ($ 1.23 trillion ), Takatoshi Ito said that the beginning of the Olympics -2020 Japan should raise the sales tax to a level of at least 20 % in order to prevent a " catastrophe " on its bond market. "The current rate - of 5% VAT - the fifth part of the same tax established in northern countries such as Sweden, to prevent the growth rates on the public debt , which is two times the GDP of the country ," - said Takatoshi Ito.

Meanwhile , we note that in the course of trade affected by the Prime Minister of Japan, Shinzo Abe , in which he called Wall Street traders to invest in Japan , promising that the country's economy will be the driving force of the global economic recovery .

"Now the Japanese economy is feeling exceptionally well " - said Abe , urging traders " buy into Abenomics».

In separate comments Abe responded to criticism over plans to tighten the country's defense . " We have a neighbor whose military spending is at least twice as much as in Japan," - he said , referring to the territorial dispute with China.

The British pound fell against the dollar after the final data showed that the UK economy expanded by 0.7 percent in the second quarter compared with the previous quarter , in line with estimates. However, the first quarter growth was revised slightly upward to 0.4 percent from 0.3 percent.

In addition , the Office of Statistics said gross domestic product expanded by 1.3 percent in the second quarter compared to last year. The annual figure was revised down from the previously estimated growth of 1.5 percent .

Another report showed that household spending rose 0.3 percent in the second quarter, but were still 2.8 percent below the peak consumption achieved in the fourth quarter of 2007.

In a separate review, the Office for National Statistics reported that the current account deficit narrowed to 13 billion pounds in the second quarter, compared with a revised deficit of 21.8 billion pounds in the first quarter.

European stocks were little changed as data showing the number of Americans filing jobless claims unexpectedly fell last week offset investor concern that budget wrangling in Washington will lead to a government shutdown.

The Stoxx Europe 600 Index fell 0.1 percent to 312.76 at 4:30 p.m. in London. The gauge has dropped 0.5 percent so far this week amid concern that U.S. politicians will fail to approve a federal budget for the new financial year. It has still climbed 5.2 percent in September as the Federal Reserve refrained from reducing its monthly asset purchases, and has surged 9.8 percent since the end of June, heading for the biggest quarterly gain in four years.

In the U.S., jobless claims decreased by 5,000 to 305,000 in the week ended Sept. 21, a Labor Department report showed today in Washington. The median forecast of economists called for an increase to 325,000.

Gross domestic product in the world’s largest economy rose at a 2.5 percent annualized rate, unrevised from the previous estimate, after expanding 1.1 percent in the first quarter, Commerce Department figures showed today. The median forecast of economists was for a 2.6 percent pace.

U.S. lawmakers have until Monday to agree to an emergency budget to keep the federal government operating from Oct. 1, the beginning of the 2014 fiscal year, through Dec. 15. Failure to pass the bill may lead to a government shutdown.

National benchmark indexes advanced in nine of the 18 western-European markets.

FTSE 100 6,565.59 +14.06 +0.21% CAC 40 4,186.72 -8.63 -0.21% DAX 8,664.1 -1.53 0.02%

Ladbrokes plunged 7.4 percent to 174.1 pence, dropping for an eighth day. The chain of bookmakers said 2013 operating profit for its digital division will be below current market expectations because of a lack of competitiveness and lower-than-planned ">Thomas Cook lost 6.8 percent to 145.1 pence, its biggest decline since Sept. 4. The tour operator said winter bookings started more slowly than last year across most markets due to geopolitical events and warm weather in Europe.

Colruyt SA fell 4.2 percent to 42.20 euros. Belgium’s biggest discount food retailer forecast full-year net income of about 369 million euros ($498 million) compared with analysts’ estimates of 381.2 million euros.

Centrica Plc, the largest energy supplier to U.K. homes, lost 2.6 percent to 366 pence. JPMorgan Chase & Co. downgraded the shares to neutral from overweight, citing proposals from Britain’s Labour Party to freeze energy bills and break up the country’s six biggest power suppliers.

ICAP Plc dropped 2.1 percent to 380.3 pence, taking its two-day decline to 4 percent. The shares fell yesterday after U.K. and U.S. authorities fined the broker $88 million on charges of rigging key interest rates.

H&M gained 6.8 percent to 281.80 kronor. Third-quarter profit increased 22 percent to 4.43 billion kronor ($690 million) in the three months ended Aug. 31, Stockholm-based H&M said in a statement. That compares with the 4.15 billion-kronor average estimate of analysts.

Oil prices rose today, despite the weakening of political disputes and improved supply situation , as many traders have begun to open trade after a sharp fall in prices at the beginning of the month. Note the beginning of September the price of oil fell more than 4 percent , and is now on its way to its biggest monthly drop since April. Now the price of oil by nearly $ 8 below from its peak at the beginning of the month , as fears of an escalation of the conflict in the Middle East have disappeared.

The new government of Iran announced on Wednesday that it wants to " push " talks with world powers to resolve the ten-year dispute over its nuclear program and hopes for a deal within three to six months.

In addition, we add that the world price of oil continues to grow on the back were better than analysts' forecasts, data on the U.S. labor market . The number of initial claims for unemployment benefits last week remained at about six-year low , indicating that the labor market is improving, although recent data have been distorted by irregularities in reporting.

The number of initial claims for unemployment benefits , which is an indicator of the number of layoffs in the week ending September 21 fell by 5,000 to 305,000 ( seasonally adjusted) . Economists had expected the figure is 319,000 .

The Labor Department revised slightly with an increase in the data for the previous week - from 309.000 to 310.000 . The original data were artificially low because of the California and Nevada data came with a delay caused by an upgrade of computer systems.

Investors will also pay attention to the data on the dynamics of the world 's largest economy in the second quarter. The real U.S. GDP growth in April- June, according to the final assessment , was 2.5% in annual terms . The changes of the past quarter coincided with the second estimate. Experts suggested the third estimate of 2.7 %.

The cost of the November futures on U.S. light crude oil WTI (Light Sweet Crude Oil) rose to $ 102.95 a barrel on the New York Mercantile Exchange.

November futures price for North Sea Brent crude oil mixture rose $ 0.98 to $ 109.01 a barrel on the London exchange ICE Futures Europe.

Gold futures traded lower, due to the release of today's U.S. data . In addition, we add that many traders continue to monitor the progress of budget negotiations in the United States . Note that in a recent letter to House Speaker John Boehner , the Minister of Finance of the United States Lew warned that if Congress does not raise the debt ceiling , the budget of the country can be badly hit , he even named the exact date when the money runs out - on October 17. The ceiling is currently set at 16.7 trillion . U.S. .

Date announced by the probability of default for the first time , before, according to the calculations of economists , the likely starting date of the budgetary problems ranged from October 18 to November 5. Says Jacob Lew , the Treasury Department is now taking "extraordinary measures" to ensure that the budget was enough as long as possible , it is quite likely delay receipt of funds in the budget organizations , including the payment would be deferred to the pension fund. Liu stressed that one can not give priority to any kind of payments from the budget, because even just the question of the order of payment will appear as "default , only named differently ."

As for the news in the U.S. , here is to provide a report on the GDP and the number of applications for unemployment benefits . As it became known , the gross domestic product , the broadest measure of all goods and services produced in the economy, rose by a seasonally adjusted 2.5 % in the second quarter , in line with the preliminary value , voiced in the past month. Economists forecast that the revised second quarter growth rate of 2.7%.

Meanwhile, another report , which was submitted to the Department of Labor showed that the number of Americans applying for first time unemployment benefits remained near six-year low last week , indicating that the improvement in the employment situation , although in recent years the data have been distorted violations in the financial statements . Initial jobless claims , the rate of layoffs, fell by a seasonally adjusted 5,000 to 305,000 in the week ended Sept. 21. Value was lower than the forecast of economists in 319,000 new claims . The Ministry of Labour has revised slightly upwards the number of complaints in the previous week to 310,000 from 309,000 .

The cost of the October gold futures on COMEX today dropped to $ 1325.40 per ounce.

EUR/USD $1.3345, $1.3350, $1.3355, $1.3415, $1.3450 $1.3500

GBP/USD $1.6000, $1.6040, $1.6065, $1.6095

USD/JPY Y98.15, Y98.50, Y98.65, Y98.70, Y99.00, Y99.40, Y99.50, Y99.65, Y99.70, Y100.00, Y101.00

AUD/USD $0.9350, $0.9400, $0.9490, $0.9500, $0.9615

USD/CAD Cad1.0200, Cad1.0280

EUR/CHF Chf1.2290, Chf1.2335

USD/CHF Chf0.9105

EUR/NOK Nok8.1300, Nok8.1375

EUR/GBP stg0.8390, stg0.8400, stg0.8420

EUR/JPY Y131.75, Y132.00, Y134.20, Y134.50

Global Stocks:

Nikkei  14,799.12 +178.59 +1.22%

Hang Seng 23,125.03 -84.60 -0.36%

Shanghai Composite 2,155.81 -42.71 -1.94%

FTSE  6,554.85 +3.32 +0.05%

CAC 4,190.45 -4.90 -0.12%

DAX 8,658.3 -7.33 -0.08%

Crude oil  $103.01 +0.34%

Gold $1334.20 -0.15%

Upgrades:

EUR/USD

Offers $1.3620, $1.3600, $1.3575/80, $1.3545/50

Bids $1.3480, $1.3455/50, $1.3420/10, $1.3400

GBP/USD

Offers $1.6200, $1.6179/80, $1.6100

Bids $1.6025/20, $1.6000, $1.5985/80, $1.5960/50, $1.5920

AUD/USD

Offers $0.9520/30, $0.9500, $0.9480, $0.9450, $0.9420

Bids $0.9320, $0.9300, $0.9280

EUR/GBP

Offers stg0.8500, stg0.8480, stg0.8460/65, stg0.8450

Bids stg0.8355/50, stg0.8320, stg0.8300, stg0.8280

EUR/JPY

Offers Y134.50, Y134.20, Y134.00, Y133.60/80, Y133.35/40

Bids Y132.60/50, Y132.20, Y132.00

USD/JPY

Offers Y99.60, Y99.50, Y99.15/20

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

European stocks declined as investors awaited a report that may show U.S. jobless claims rose last week, and amid concern budget wrangling in Washington will lead to a shutdown of the federal government. Asian shares rose, while U.S. index futures were little changed.

The Stoxx Europe 600 Index slipped 0.2 percent to 312.42 at 10:41 a.m. in London. The gauge has dropped 0.6 percent so far this week amid concern that U.S. politicians will fail to approve a federal budget for the new financial year. Standard & Poor’s 500 Index futures rose 0.2 percent today, while the MSCI Asia Pacific Index gained 0.3 percent.

Ladbrokes plunged 7.7 percent to 173.6 pence, dropping for an eighth day. The chain of bookmakers said 2013 operating profit for its digital division will be below current market expectations because of a lack of competitiveness and lower-than-planned ">Thomas Cook tumbled 6.4 percent to 145.6 pence, its biggest decline since Sept. 4. The tour operator said winter bookings started more slowly than last year across most markets due to geopolitical events and warm weather in Europe.

H&M gained 6.4 percent to 280.90 kronor. Third-quarter profit increased 22 percent to 4.43 billion kronor ($690 million) in the three months ended Aug. 31, Stockholm-based H&M said in a statement. That compares with the 4.15 billion-kronor average estimate of 16 analysts.

FTSE 100 6,538.7 -12.83 -0.20 %

CAC 40 4,174.9 -20.45 -0.49 %

DAX 8,634.03 -31.60 -0.36 %

Eurozone broad money supply growth accelerated in August, while loans to private sector declined further, the European Central Bank said Thursday.

The broad monetary aggregate M3 grew 2.3 percent from a year ago, in line with forecast, after rising 2.2 percent in July.

Among the components of credit to the private sector, loans dropped 2 percent in August, compared with a 1.9 percent fall in the previous month.

At the same time, loans to households gained 0.1 percent, unchanged from the previous month. Similarly, the annual growth rate of lending for house purchase, the most important component of household loans, remained unchanged at 0.7 percent.

The U.K. economy expanded 0.7 percent sequentially in the second quarter as estimated in August, final data from the Office for National Statistics showed Thursday.

However, the first quarter growth was revised up ">Further, the statistical office said gross domestic product expanded 1.3 percent in the second quarter from a year ago, which was revised down from the previously estimated 1.5 percent.

Another report showed that household spending increased by 0.3 percent in the second quarter but still remains 2.8 percent below the peak of spending in the fourth quarter of 2007.

In a separate communique, the ONS said the current account deficit narrowed to GBP 13 billion in the second quarter from a revised deficit of GBP 21.8 billion in the first quarter.

The ONS today said business investment decreased by GBP 786 million or 2.7 percent quarter-on-quarter to GBP 28.7 billion in the second quarter.

EUR/USD $1.3345, $1.3350, $1.3355, $1.3415, $1.3500, $1.3600, $1.3700

GBP/USD $1.6000, $1.6040, $1.6065, $1.6095

USD/JPY Y98.15, Y98.50, Y98.65, Y98.70, Y99.00, Y99.40, Y99.50, Y99.65, Y99.70, Y100.00, Y100.50, Y101.00

AUD/USD $0.9350, $0.9490, $0.9500, $0.9615

USD/CAD Cad1.0200, Cad1.0280

EUR/CHF Chf1.2290, Chf1.2335

USD/CHF Chf0.9105

EUR/NOK Nok8.1300

EUR/GBP stg0.9380, stg0.8400, stg0.8420

EUR/JPY Y131.75, Y132.00, Y134.20, Y134.50

Asian stocks climbed, led by Japanese shares, amid speculation the nation’s government will study a corporate tax cut and advise public pension funds to hold more risky assets. The regional benchmark headed for the biggest monthly advance since January 2012.

Nikkei 225 14,799.12 +178.59 +1.22%

Hang Seng 23,120.34 -89.29 -0.38%

S&P/ASX 200 5,294.46 +18.52 +0.35%

Shanghai Composite 2,155.81 -42.71 -1.94%

Honda Motor Co. climbed 1.4 percent in Tokyo, recovering earlier declines, as the yen weakened against the dollar for the first time in five days.

Finsoft Corp. , a trading-software maker, surged 534 percent on its trading debut in Hong Kong.

Advantest Corp., which makes semiconductor testing devices, sank 3.2 percent after forecasting a loss.

---

The yen dropped against all its 16 major peers after Kyodo News reported, without citing anyone, that Japan’s government plans to pledge to “promptly” start a study on cutting the effective corporate tax rate.

The U.S. currency also strengthened before a report forecast to show the world’s largest economy expanded at a quicker pace than initially estimated in the second quarter. U.S. gross domestic product expanded an annualized 2.6 percent in the second quarter, according to the median estimate of analysts polled by Bloomberg News before today’s report, compared to an earlier reading of 2.5 percent.

Applications for unemployment benefits in the U.S. probably climbed to 325,000 in the week ended Sept. 21 from 309,000 in the previous period, according to the median forecast of economists surveyed by Bloomberg before today’s report. The figure dropped in the week through Sept. 7 to the lowest level since 2006 due to computer-system changeovers by California and Nevada employment agencies.

U.S. Treasury Secretary Jacob J. Lew stepped up pressure on Congress to avert a potential default, telling lawmakers in a letter yesterday that measures to avoid breaching the debt ceiling will be exhausted on Oct. 17. The federal spending authority runs out in four days.

EUR / USD: during the Asian session the pair traded in the range of $ 1.3510-25

GBP / USD: during the Asian session, the pair traded in the range of $ 1.6065-85

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

Focus turns to release of Q2 UK and US GDP data for added direction.

GOLD 1,333.40  17.40 1.32%

OIL (WTI) 102.34  -0.79 -0.77%

Nikkei 225 14,620.53 -112,08 -0,76%

Hang Seng 23,209.63 30,59 0,13%

S & P / ASX 200 5,275.94 41,78 0,80%

Shanghai Composite -9,02 -0,41 2,198.52%

FTSE 100 6,551.53 -19.93 -0.30%

CAC 40 4,195.35 -0.26 -0.01%

DAX 8,665.63 +1.03 +0.01%

Dow -59.21 15,275.38 -0.39%

Nasdaq -7.15 3,761.10 -0.19%

S&P -4.45 1,692.97 -0.26%

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

EUR/USD $1,3522 +0,38%

GBP/USD $1,6077 +0,47%

USD/CHF Chf0,9096 -0,38%

USD/JPY Y98,45 -0,29%

EUR/JPY Y133,13 +0,11%

GBP/JPY Y158,25 +0,18%

AUD/USD $0,9360 -0,26%

NZD/USD $0,8241 -0,42%

USD/CAD C$1,0316 +0,13%

06:00 Kingdom Nationwide house price index September +0.6% +0.5%

06:00 United Kingdom Nationwide house price index, y/y September +3.5% +4.4%

08:00 Eurozone M3 money supply, adjusted y/y August +2.2% +2.3%

08:30 United Kingdom Current account, bln Quarter II -14.5 -11.2

08:30 United Kingdom GDP, q/q (Finally) Quarter II +0.7% +0.7%

08:30 United Kingdom GDP, y/y (Finally) Quarter II +1.5% +1.5%

12:30 U.S. Initial Jobless Claims September 309 319

12:30 U.S. PCE price index, q/q Quarter II +1.8% +1.8%

12:30 U.S. PCE price index ex food, energy, q/q Quarter II +0.8% +0.8%

12:30 U.S. GDP, q/q (Finally) Quarter II +2.5% +2.7%

13:00 Switzerland SNB Quarterly Bulletin Quarter III

14:00 U.S. Pending Home Sales (MoM) August -1.3% -0.9%

14:10 Eurozone ECB’s Vitor Constancio Speaks

14:10 U.S. FOMC Member Jeremy Stein Speaks

23:05 United Kingdom Gfk Consumer Confidence September -13 -10

23:30 Japan Tokyo Consumer Price Index, y/y September +0.5% +0.5%

23:30 Japan Tokyo CPI ex Fresh Food, y/y September +0.4% +0.5%

23:30 Japan National Consumer Price Index, y/y August +0.7% +0.8%

23:30 Japan National CPI Ex-Fresh Food, y/y August +0.7% +0.7%