Exchange rates today: euro, dollar and floating pound

Dollar and the euro continued to fight for optimism bulls

In brief: Dollar and the euro remained under the influence of the euro area statistics.

USD. Ultimately, the optimism of victory: approaching the last working day of the week, we can say with confidence that the markets for the time forgot about dire predictions about the spread of European debt crisis. Euro received support after the successful auction of the Spanish government bond. The country was to sell T-bills at 3.5 billion euros, and the success of this operation has caused the demand for risky assets, as confirmed that investors have confidence in Spain, but not all of these terrible rumors. In addition, and economic data from the U.S. dollar have not brought the support on which he had hoped.

Appeals for benefits b / d last week rose 12,000 to 472,000. The number of Americans looking for work, unexpectedly rose to a value of monthly maximum, which shows that American companies continue to lay off workers, even though the economic recovery. Some companies reduce staff in order to stimulate the growth of profits or to preserve them. The latest statistics show that the country needs a stronger employment growth, to stimulate consumer spending, constituting 70% of the economy. However, while employment is growing slowly, unemployment is close to the mark of 10%. In addition, consumer prices in the U.S. in May reflect the second decline in a row. Reducing the consumer price index by 0,2% was the highest since December 2008 and followed a decline in April by 0,1%. Activity in the manufacturing sector in the region Philadelphia Fed rose in June at a slower pace than expected, as the employment component reflected the decline for the first time in 7 months. The overall index of economic activity Philadelphia Fed dropped to 8 (10-month minimum) value of 21.4 in May. Nevertheless, Conference Board reported that the U.S. index of leading indicators for May rose to new highs, suggesting further recovery of the national economy. Thus, we see that the recovery in the U.S. economy is still a controversial issue, as many industries continue to show volatility and uncertainty. Most likely, these problems still emerge in the future, but currently the market to pay more attention to financial sector problems have been observed in Europe.

EUR. Yesterday fundamental reports from the euro zone is not particularly observed, but their absence completely offset by the news from Spain. After rumors that the country will need 250 billion euros in financial assistance already provided by Greece, reported that an auction for the Spanish GKO ended successfully, caused uplift of optimism and a new wave of demand for risky assets. Also, yesterday there were reports that Portugal could reduce the forecast budget deficit in 2010 to 7.1% of GDP, against an initial assessment of 7.3%, based on program stability and growth and financial performance of the first four months of the year. These reports help the euro gradually restore their positions, but we are still very skeptical about such a sharp change of mood.

Morning trades show that the currency went into consolidation mode, and most likely this momentum will be maintained throughout the day as traders will be ready for the weekend and would prefer to refrain from opening new positions.


Pound again yesterday stood in the forefront of movements. In the morning he reacted sharply to a positive report on retail sales, as many had expected from the indicators of negative surprises. Sales rose by 0,6% compared to the previous month, against expectations of growth at 0.1%. In April, sales volume remained unchanged after the revision of 0.3%. Such news helped the pound back above the 1.48 mark, and not even very positive data from the CBI failed to provide the currency pressure. The index of factory orders in the UK fell in June for the first time in the past three months by a decline in export sales. The index dropped to -23 against -18 in May. The index of export orders fell by 5 PCT. to -2, recording a negative balance for the first time since December.

Today we will see a series of reports on state finances. The indicators may be of interest, given the fact that the state expenditures are one of the key problems of Great Britain. However, only a really sharp deviation from the projections may cause the pound to show sharp movements. Friday after all.

Anrey Torbinski
2010-06-18 08:52, Currency news.

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