Dollar continues to fall against most currencies after the publication of data on consumer confidence and manufacturing the Dallas FBI figures turned out to be much lower than expected. Despite this, the euro was unable to stay above the $ 1.4400 and never made it to the previous highs at $ 1.4424 euros to the dollar. Pair euro dollar dropped below the $ 1.4400. Dollar selling against the euro, Canadian dollar and many European currencies. The US currency rises against the pound, Swiss franc and yen. The current exchange rate of 1.4381 euros to the dollar.
Euro dollar shifted to FAZu
The sharp depreciation of the euro/dollar to the euro dollar 1.4440 1.4390 was caused by the publication in the German edition of the FAZ, which, in its article says that the International Monetary Fund does not provide its share under the fifth tranche of the ongoing assistance of Greece at the end of June. Additional negative factor for the single currency was the decision by Chinese rating agency downgrade rating of France to the level of "negative". However, the euro dollar has so far managed to recover all lost positions. Article in German FAZ also reports that the IMF will participate in the new programme of assistance to Greece. It was reassured by market participants.Start of trading in Europe was to positively euro
In early European trading the dollar loses in value against the euro. Pressure on the US currency had negative market sentiment about the prospects of world economy and fears getting signs of economic slowdown. In particular, at the moment the market negatively configured for data on American jobs. Today will be published the data on employment in the United States in may by a private company ADP that traditionally precede the report on the labour market. It will be published on Friday. According to the ADP projections imply that the American economy in the last month of spring created 175000 new jobs compared with 179000 during the previous month.
The euro, in turn, benefit from reducing concerns about the debt crisis. Greece is close to reaching an agreement with representatives of the European Union and the International Monetary Fund, which leaves chances that default on their debts would be avoided. Luxembourg Prime Minister supported his comments the day before yesterday the single currency, saying that eurozone leaders would decide on a new aid package until the end of June, excluding the possibility of rescheduling the debts of Greece. Also support European currency continues to raise the refinancing rate expectations. Today the attention of the participants of the market will be riveted by the head of the ECB Jean-Claude Trichet in Germany. In his comments, market observers are hoping to get confirmation of its expectations. It should be noted that 26 May, Trichet said the Ecb closely monitors inflation risks and is ready to do everything necessary to carry out its tasks, with a view to maintaining price stability.
Today in Asia published quite a lot of economic reporting. First rate b/r in Japan has reached a level of 4.7 per cent, in accordance with the forecast, and general household expenditures fell by stronger-than-expected 3.0% g/g. Then released a report on the volume of production in Japan for April, which, as expected, showed growth compared with the tragic March values. Indicator grew by 1.0% m/m, but lower at 14.0% g/g. Then turn of Australia, where prices fell by 0.1% m/m and the number of approved construction projects fell by 1.3% m/m. Balance of current account for 1 quarter deteriorated. During the reporting period, the deficit grew to A $10,447 billion, because natural disasters affected the volume of exports, thereby increasing the risk of decline in GDP, which will be published tomorrow. Meanwhile, growth in lending in the private sector were below forecasts. Index of business activity and confidence in New Zealand showed recovery in may, rising to 39.7 and 38.3 respectively.
Euro/dollar at Asian session broke through resistance level 1.4350, worked the foot led a couple to 1.44 euro dollar. Traders were discussing the next article in the WSJ, which stated that Germany could make concessions in their demands to help Greece to ease the situation. Moody's placed the rating of Japan to review with the possibility of downgrading against a backdrop of growing concerns about the pace of economic growth and the failure of politicians in spite of high levels of debt (Note: Fitch did so last Friday). It was enough to make the fall of the dollar/Yen to 81.00.
European session begins with the publication of the GDP in Switzerland for the first quarter (0.7 per cent is expected to drop to kV/kV, 3.0% YOY against 0.9% and 3.1% respectively). Germany publishes a report on retail sales and unemployment. Go consumption data in Switzerland and the balance of current account in Sweden. Norway publishes a report on retail sales. In addition, today publish the CPI in the eurozone for may and unemployment for April. In the u.s. House price index Case/Shiller, Chicago PMI, consumer confidence and the index of business activity in the manufacturing industries of Dallas. Canada publishes the prices of manufactured goods and raw materials, and the Bank of Canada announces decision on rate (the average forecast of-1.0%).
Yesterday the currency behaved very cautiously because of holidays in the UK and the United States. However, low liquidity caused excessive movements. The euro tried to break through resistance 1.4350, but to no avail. The Canadian dollar has been under pressure since the GDP for the 1 quarter in slightly below expectations at 3.9% g/g. revision of the previous values downward to 3.3% to 3.1% is also not helped improve sentiment. The data below projections indicate that the Bank of Canada tomorrow will prefer to leave the rate unchanged. Swedish krona benefited from demand, since retail sales in Sweden rose by 5.2% g/г. the New Zealand dollar set new record high after the release of data on the balance of trade surpluses. The Australian dollar was left behind, as Minister of finance, Swan announced that the country's economy in 1 quarter suffered a severe blow.
2:45 New Zealand terms of foreign trade of 1 m2. 2011.
3:30 Australia Index of business activity in the manufacturing sector from AIG may
05:00 New Zealand index of prices of natural resources,
5:30 Australia GDP 1 kV. 2011.
During the day Japan address by the Governor of the Bank of Japan m. Shirakawa
10:30 Australia Index prices of natural resources,
11:15 Switzerland retail sales in March
11:30 Switzerland Index of business activity from SVME may
12:00 Eurozone Index of business activity,
12:30 United Kingdom Index of business activity in the manufacturing sector,
12:30 United Kingdom Change private lending, n/a 1.1 billion. ? 0.5 billion.
12:30 United Kingdom Monetary Unit M4 April
12:30 United Kingdom Approval of mortgage loans, n/a 48.000 48.000 15:30 United States Planned job cuts may
16:15 United States to change the number of persons employed in non-agricultural sector,
17:00 Eurozone the ECB President j.-c. Trichet
18:00 United States Index of business activity in the manufacturing sector from the ISM may
18:00 United States Statement Treasury Secretary t. Gajtnera
18:00 United States construction costs, n/a 0.4% m/m 1.4% m/m
18:00 United States producer price index for may n/a 81.9 85.5
During the day United States sales of cars in annualized, n/a 12.9 million. 13.2 million.
21:35 United Kingdom statement by a member of the monetary policy Committee of the Bank of England p. Tucker
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