Analytics, News, and Forecasts for CFD Markets: currency news — 12-10-2012.

The euro rose for a second day against the dollar on speculation that Spain is close to what will request financial assistance. Also, the euro rose as the EU statistical office in Luxembourg said that industrial production in the eurozone unexpectedly increased in August by 0.6%.

Later, the single currency fell as Reuters reported that the European Stability Mechanism is not enough money to rescue Spain if the country asks for help before the end of the year. However, analysts say that the fund has the right to collect the money from the sale of fixed income securities.

Dollar rose after the published data showed that consumer sentiment index jumped to 83.1 from the final level of the value in September - 78.3. As it became known, the October index is the highest since September 2007.

The Australian dollar fell against all 16 most-traded currencies amid falling stock markets in the U.S. and Europe.

The yen fell against the dollar amid signs of U.S. economic recovery, reducing demand for safe-haven.

• Fundamental growth prospects of the U.S. economy in the long term is still promising

• It is expected that the confidence of households will gradually rise

• Rather, economic growth will accelerate later next year

• Political deadlock paralyzing uncertainty creates

• The recession has forced consumers to be more cautious in spending

• Investment in the housing market is still low compared to historical norms

• The housing market is showing some encouraging signs

• Would prefer to buy Treasury bonds and mortgage-backed securities are not

• The housing market is still faced with excess inventories of homes

• Reducing unemployment frustratingly slow

• Economic recovery is "pretty weak"

• The benefits of bond purchases is likely to be small

• I agree with the decision of the Committee on the Open Market of to keep interest rates near zero

Data:

09:00 Eurozone Industrial production, (MoM) August +0.6% -0.5% +0.6%

09:00 Eurozone Industrial Production (YoY) August -2.3% -4.1% -2.9%

EUR/USD

Offers    $1.3070/85, $1.3035/40, $1.2990/000 

Bids $1.2905/00, $1.2875/70, $1.2855/45, $1.2820-00

Yesterday the dollar fell against most major currencies, as speculation arose that Spain could ask for help, and the increased demand for Italian bonds, influenced increasing appetite for riskier assets.

The dollar continued to trade down, even after the published data showed that the number of initial claims for unemployment benefits fell to the lowest level in four years. The number of initial claims for unemployment benefits during the week (September 30 - October 6) decreased by 30,000 to 339,000 level. However, this decline is largely due to the fact that one state has not published data.

Earlier, the euro has significantly decreased since the rating agency S & P downgraded Spain's credit rating by two notches, but because it has increased the likelihood that Spain, for financial support, the euro has soared.

The dollar index (DXY), which is used to track the value of the dollar against the currencies of the U.S. partner, fell 0.2% to 79.779.

The Australian dollar strengthened after the published data, according to which it was reported that the number of employed increased by 14,500 people in September, which was almost three times more than the average estimate of economists. At the same time, the unemployment rate rose to 5.4%, reaching its highest level since April 2010.

The euro broke a three-day decline against the yen on speculation regarding the financing of Spain. Note also that the profitability of Spanish 10-year bonds fell to 5.76%.

During the U.S. session, the dollar fell sharply against the yen, after a significant increase in the early afternoon. However, the combination of weak economic performance in Japan, increased pressure on the Bank of Japan in order to soften its monetary policy, as well as the probability of the intervention to the depreciation of the yen is likely to retard the growth of the Japanese currency in the near future.

01:00 Japan BOJ Governor Shirakawa Speaks

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

EUR/USD $1,2929 +0,60%

GBP/USD $1,6046 +0,28%

USD/CHF Chf0,9346 -0,48%

USD/JPY Y78,39 +0,31%

EUR/JPY Y101,36 +0,92%

GBP/JPY Y125,79 +0,60%

AUD/USD $1,0265 +0,45%

NZD/USD $0,8175 +0,13%

USD/CAD C$0,9784 -0,37%

01:00 Japan BOJ Governor Shirakawa Speaks -

09:00 Eurozone Industrial production, (MoM) August +0.6% -0.5%

09:00 Eurozone Industrial Production (YoY) August -2.3% -4.1%

12:30 U.S. PPI, m/m September +1.7% +0.8%

12:30 U.S. PPI, y/y September +2.0% +1.7%

12:30 U.S. PPI excluding food and energy, m/m September +0.2% +0.2%

12:30 U.S. PPI excluding food and energy, Y/Y September +2.5% +2.5%

13:55 U.S. Reuters/Michigan Consumer Sentiment Index October 78.3 77.9

16:35 U.S. FOMC Member Laker Speaks -

18:00 U.S. Federal budget September -190.5 -4.0