American focus: the yen continued to rise

The U.S. dollar fell against most major currencies, despite U.S. economic data that beat expectations. The index of U.S. consumer confidence reached its peak at 6 years old, could not raise a dollar. According to the data, in July consumer sentiment index from Thomson-Reuters and the Michigan Institute has risen to the level of 85.1, compared with a final reading for June at 84.1. It is worth noting that according to the average estimates of experts, the index had only grow to the level of 84.0 from 83.9 (preliminary reading for July).

The dollar's decline was due to investors' concern about the possible changes in the Fed's key interest rates to reduce the incentive program. On Thursday, The Wall Street Journal wrote that the meeting to discuss future policy on July 30-31, the central bank will keep bond buying program. However, the management is likely to discuss the revision of its guidelines. The article reported that the central bank may lower the threshold 6.5% unemployment or state that short-term interest rates will not increase with a decrease in inflation. Such steps will point to the fact that the folding program of bond purchases by 85 mldr dollars a month may not come as quickly as investors believed.

The yen higher against the U.S. dollar, which has been associated with the release of the report on Japan. As shown by recent data that has been provided by the Ministry of Internal Affairs and Communications, the core consumer price index in Japan in June rose by 0.4% compared with the same period last year, marking the first increase in more than a year. It is worth noting that according to the average forecasts of experts, the growth of this index was up 0.3%, while in May, the index remained unchanged. This growth has been favorable news for the Bank of Japan, which has launched a two-year program to combat deflation, aimed at achieving inflation of 2%. According to preliminary estimates, in the Tokyo region inflation in July was 0.3%, compared with a forecast of 0.2%. The key consumer price index, which does not include the more volatile food prices, rose 0.3%. However, it should be noted that inflation excluding the prices of petroleum products and food, which, for example, in the United States is used as the main indicator fell by 0.2%.

Published data highlight the successes of the policy pursued by Prime Minister Shinzo Abe. Recall that in April 2013, he launched an ambitious program of quantitative easing, and the main objective is to achieve a 2% inflation rate and the revival of economic growth.