Analytics, News, and Forecasts for CFD Markets: currency news — 07-09-2012.

The euro strengthened to a 10-week high against the dollar after the German data showed that the volume of exports and industrial production increased in July, increasing the demand for foreign currency in the region. German exports grew by 0.5% in July, compared with the revised figure in June at 1.4% and economists' expectations of 0.5% decline. Industrial production rose by 1.3% in July, compared with the revised figure in June at 0.4%.

The single currency continued to rise against the yen on speculation that the European Central Bank announced a program to purchase bonds will help contain the debt crisis in the EU. ECB President Mario Draghi said yesterday that the central bank will focus on government bonds with a maturity of one to three years to help keep borrowing costs. Purchases will have a neutral impact on the money supply.

The dollar fell against most major currencies in anticipation of the release of data on the number of people employed in non-agricultural sectors of the economy and unemployment.

At the same time, the Swiss franc fell against the euro to its lowest level since March, due to lower demand for safe assets.

The dollar index (DXY) shows a decline of a third day before today's report on employment.

It is predicted that U.S. employers hired 130,000 workers last month, after adding 163,000 people in July. Yesterday, a report from ADP Employer showed that companies have created 201,000 jobs in August, which was above analysts' forecasts at 140 thousand.

The Canadian dollar continued its sharp rise yesterday against the dollar as market participants are waiting for release of Canadian data on employment.

EUR/USD: during the European session, the pair showed steady growth, while setting a new high at $ 1.2713 and is now trading in the achieved values

GBP/USD: the pair grown, reaching a high of $ 1.5985, but then fell sharply, reaching a minimum value at the same session

USD/JPY: the pair slightly increased, reaching the previous maximum, and then fell to the opening level of the day

At 12:30 GMT in Canada will come changes in the volume of building permits issued in July, the unemployment rate, changes in the number of employees, including full-and part-time in August, the change in labor productivity for the 2nd quarter. At 12:30 GMT the U.S. will release the unemployment rate, changes in the number of people employed in non-agricultural sector, changes in the number of employees in the private sector of the economy, changes in the number of employees in the manufacturing sector of the economy, changes in the average hourly wage. At 14:00 Canada is to publish an index of the PMI Ivey (including seasonally adjusted). At 14:00 GMT the UK there are data on the volume change of the NIESR GDP for August.

GBP/USD

Offers $1.6080, $1.6050/60, $1.6020/30, $1.5990-600

Bids $1.5905/00, $1.5880, $1.5850

EUR/JPY

Offers Y100.60/70, Y100.50

Bids Y 99.10/00, Y 98.80

USD/JPY

Offers Y79.50, Y79.20

Bids Y78.30/25, Y78.20, Y78.10/00, Y77.90

EUR/GBP

Offers stg0.8015/20, stg0.8000, stg0.7980, stg0.7955

Bids stg0.7885/80, stg0.7860/50

The dollar held declines against higher-yielding currencies before the U.S. government releases its monthly jobs report. U.S. employers probably added 130,000 workers to payrolls last month, trailing the 163,000 increase in July, according to the median estimate of economists surveyed by Bloomberg News. The Labor Department releases its figures today. The jobless rate held steady at 8.3 percent, economists forecast.

The euro traded near a two-month high after ECB President Mario Draghi said policy makers agreed to the unlimited purchase of government debt to reduce interest rates for struggling nations and help prevent a break-up of the European currency bloc. Draghi said yesterday the ECB will target government bonds with maturities of one to three years, including longer-dated debt that has a residual maturity of that length. Purchases will be fully sterilized, meaning the overall impact on the money supply will be neutral, and the ECB will not have seniority, he said. The central bank left its benchmark interest rate at 0.75 percent.

EUR / USD: during the Asian session, the pair traded in a range of $ 1.2625-$ 1.2645.

GBP / USD: during the Asian session, the pair traded in a range of $ 1.5921-$ 1.5935.

USD / JPY: during the Asian session, the pair rose to yesterday's high.

Europe data at 0600GMT includes German trade balance data for July and Q1/Q2 labour costs data. Spain industrial output for July then follows at 0700GMT. UK data at 0600GMT includes John Lewis Sales and the BDO High StreetSales Tracker. It is a busy day for UK data with PPI and industrial production data due at 0830GMT along with Q2 Construction New Orders and also the BOE/GfK NOP Inflation Attitudes Survey. US data starts at 1230GMT with the main release, when non-farm payrolls are forecast to rise by 129,000 in August after the 163,000 rise in July, as suggested by the recent improvement in jobless claims. The unemployment rate is forecast to hold steady at 8.3%. Later US data sees the 1900GMT release.