Analytics, News, and Forecasts for CFD Markets: currency news — 07-08-2012.

The euro rose against the yen and dollar after Germany declared that it supported the proposal of the President of the European Central Bank's Mario Draghi to stop the debt crisis in the region.

The single currency showed growth after a report showed that the economy of Italy fell less than expected by economists predicted. Italian gross domestic product fell by 0.7% in the second quarter. The average score of economists was at -0.8%. In annual terms, GDP fell by 2.5%.

Euro continued to rise even after the German Ministry of Economics has stated that the volume of industrial orders fell by 1.7% in June, after rising 0.7% in May. Economists had forecast that the decline of 0.8%.

The Swiss franc rose against the dollar and was little changed against the euro after the central bank of Switzerland said that foreign exchange reserves rose to record levels in July.

The Australian dollar rose to its highest level since March, after the Reserve Bank of Australia left the level of interest rates unchanged.

The course of the yen rose against the dollar after growth stocks around the world has stimulated speculation that the Bank of Japan will refrain from further easing of monetary policy at a meeting this week.

EUR / USD: during the European session, the pair shows a marked increase, updating the maximum session

GBP / USD: a couple has more than one figure, and is now trading in the region of maximum values ​​at $ 1.5675

USD / JPY: during the European session, the pair has grown and is now trading at Y78.45

At 12:30 GMT in Canada will change in the volume of building permits issued for June. At 14:00 GMT, Canada will report on the PMI index from the Ivey (including with seasonally adjusted) in July. At 14:00 GMT, Britain will publish data on the change in GDP from the NIESR in July. At 20:30 GMT the U.S. will change in the volume of crude oil, according to the API for August. Finish the day at 23:50 GMT, Japan, and the data on the total adjusted current account surplus in June.

GBP/USD

Offers $1.5750

Bids $1.5615/00, $1.5585/80, $1.5535/30

AUD/USD

Offers $1.0635/40, $1.0620

Bids $1.0555/50, $1.0500, $1.0480, $1.0450

EUR/GBP

Offers stg0.8015/20, stg0.8000, stg0.7965/70

Bids stg0.7910/00, stg0.7885/80, stg0.7855/50

EUR/JPY

Offers Y98.00, Y97.80, Y97.50

Bids Y96.70, Y96.50, Y96.20,
Y96.00

USD/JPY

Offers Y79.00, Y78.80, Y78.60/65, Y78.50

Bids Y78.10, Y78.00

The yen remained stronger versus the dollar as a rally in equities worldwide spurred speculation the Bank of Japan will refrain from additional monetary easing at a policy meeting that starts tomorrow. The BOJ probably won’t change its view that Japan’s economy is picking up moderately, the Nikkei newspaper reported, without saying where it got the information. All 17 economists in a Bloomberg survey forecast the central bank will keep its benchmark overnight target rate at 0.1 percent at this week’s two-day meeting.

This will be the first central bank meeting with new board members Takahide Kiuchi and Takehiro Sato, who have both signaled willingness to consider fresh forms of easing.

Demand for the euro was supported after Merkel’s government backed ECB President Mario Draghi’s proposals on bond buying to help bring down borrowing costs in Spain and Italy. Germany is “not worried” by Draghi’s announcement of Aug. 2, deputy Merkel spokesman Georg Streiter told reporters in Berlin yesterday, when asked whether the government is concerned that ECB independence might be compromised. Draghi outlined a plan last week under which the ECB may buy debt of struggling euro-bloc countries in tandem with the euro area’s bailout fund, while saying the details still need to be worked out over the coming weeks.

Italy’s Monti said that disagreements within the euro area are detracting from the policy response to the debt crisis, according to an interview with Germany’s Der Spiegel magazine published Aug. 5. He said he backed the ECB’s willingness to address “severe malfunctioning” in the government bond market.

The Australian dollar rose to the highest in more than four months after the nation’s Reserve Bank kept interest rates unchanged at 3.5 percent at a policy meeting today.

EUR/USD: during the Asian session the pair was traded in range $1.2385-$1.2405.

GBP/USD: during the Asian session the pair fell, dropping below $1.5600.

USD/JPY: during the Asian session the pair traded in a range Y78.15-Y78.30.

Core-European data sees Italy industrial output for June as well as the flash estimate of Q2 GDP data at 0800GMT. Germany manufacturing orders for June are due at 1000GMT and are expected to come in at -1.0% m/m, -7.2% y/y. UK data at 0830GMT includes weekly fuel prices as well as Industrial Production. US data starts at 1145GMT with the weekly ICSC-Goldman Store Sales data, followed at 1255GMT by the weekly Redbook Average. At 1400GMT, the Canadian Ivey Purchasing Managers Index for July is due. Later on, at  1830GMT, Federal Reserve Chairman Ben Bernanke hosts a town hall meeting with educators from across the country at Board headquarters.