The euro rose against most major currencies after data released showed that the index of current conditions IFO fell less than some economists predicted, suggesting that the region's largest economy can withstand the sovereign debt crisis. Other submitted data for Germany were slightly below expectations, but in spite of this, the euro rose.
The single currency traded near a seven-week high against the dollar after German Finance Minister Wolfgang Schaeuble said that Germany and France will create a working group to improve the financial and monetary union in the region.
Pound today traded in a narrow range, as financial markets in the UK were closed for an official holiday.
The Canadian dollar strengthened against the dollar and rose against most other major currencies, as well as among investors increased appetite for higher-yielding assets. The Australian dollar touched its lowest level in a month, extending a two-week decline, as concern about global economic growth is the increased demand for higher-yielding assets.
Demand for Currency Australian and New Zealand was supported after Federal Reserve Chairman Ben Bernanke said that "there is scope for further action by the Federal Reserve to ease financial conditions and strengthen recovery".
Data
06:00 United Kingdom Bank holiday -
06:00 Germany Import prices July -1.5% +0.8% +0.7%
06:00 Germany Import prices Y/Y July +1.3% +1.4% +1.2%
08:00 Germany IFO - Business Climate August 103.3 102.8 102.3
08:00 Germany IFO - Current Assessment August 111.6 110.8 111.2
08:00 Germany IFO - Expectations August 95.6 95.0 94.2
The euro rose slightly against the dollar after the published data showed that the index of current conditions IFO fell less than some economists predicted, suggesting that the region's largest economy can withstand the sovereign debt crisis. Other submitted data for Germany were slightly below expectations, but in spite of this, the euro rose.
The single currency strengthened against the yen as German Finance Minister Wolfgang Schaeuble said that Germany and France will create a working group to improve the financial and monetary union in the region. He also said that the working group will prepare solutions in banking alliance and strengthen fiscal union and monetary union.
Note that the most important event of the week will be a symposium in Jackson Hole, where the President of the ECB and the Fed chairman gave a speech on the future policy.
We remind that the UK financial markets closed on Letnik holidays. Against this background, pound traded in a narrow range.
EUR/USD: during the European session, the pair has grown, reaching $ 1.2535.
GBP/USD: the pair shown peak at $ 1.5830, after rate slightly receded.
USD/JPY: steam updated Friday's high, then fell to the opening level
16:15 GMT In an address by a member of the FOMC Sandra Pyanalto.
EUR/USD
Offers $1.2600, $1.2550/55
Bids $1.2480, $1.2470-50, $1.2430, $1.2415/00
GBP/USD
Offers $1.5920, $1.5850
Bids $1.5780, $1.5730
AUD/USD
Offers $1.0500, $1.0470/80, $1.0450, $1.0420
Bids $1.0350, $1.0320, $1.0300
EUR/JPY
Offers Y99.50, Y99.20, Y99.00
Bids Y98.00, Y97.75/70, Y97.50
EUR/GBP
Offers stg0.8015/20, stg0.8000, stg0.7965/70, stg0.7925
Bids stg0.7900, stg0.7875/70, stg0.7860/50
USD/JPY
Offers Y79.20, Y79.00
Bids Y78.50, Y78.30/25, Y78.10/00, Y77.90
The euro remained lower following a drop at the end of last week before a report today that may show German business confidence fell to a two-year low, adding to evidence Europe’s debt crisis is hurting its economies. The Munich-based Ifo institute is forecast to say today that its business climate index for Germany slid to 102.7 in August, a level unseen since March 2010, according to the median estimate of economists in a Bloomberg News survey. That compares with a reading of 103.3 in July.
The 17-nation currency also maintained a decline versus the majority of its 16 peers before German Finance Minister Wolfgang Schaeuble meets his French counterpart today to discuss Greek budget targets. Germany’s Schaeuble will meet French Finance Minister Pierre Moscovici today. Schaeuble said a new aid package for Greece “isn’t the right path” for solving the debt crisis, Tagesspiegel am Sonntag reported over the weekend, citing an interview.
Demand for the dollar was limited before Federal Reserve Bank of Chicago President Charles Evans speaks today amid speculation the U.S. central bank will expand monetary easing that may debase the currency. The Chicago Fed’s Evans will speak today in Hong Kong and central bank Chairman Ben S. Bernanke will deliver a speech on Aug. 31 at the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming.
EUR/USD : during the Asian session the pare traded in the range of $1.2495-$1.2525.
GBP/USD : during the Asian session the pare traded in the range of $1.5795-$1.5820.
USD/JPY : during the Asian session the pare rose to Y78.85.
On Friday the euro fell against the dollar amid comments from the German Parliament, who said that the Bundestag not want Greece to provide new facilities or extend the time for the fulfillment of its obligations.
Also, the pressure on the euro also had a statement of the ECB that the completion of the plan for the purchase of bonds to wait for a vote on the issue of the European Stabilization Mechanism (ESM). Against this background of increased yield of Spanish government bonds.The pound fell against the dollar after the release of statistics. GDP data were generally as expected: the indicator was revised to -0.5% q / q (at the level of the average forecast) against preliminary level of -0.7%. In the first quarter a decline of 0.3% q / q. Sales of pounds for the most part these were due to changes in the volume of commercial investments, which were much worse than expected.
06:00 United Kingdom Bank holiday -
06:00 Germany Import prices July -1.5% +0.8%
06:00 Germany Import prices Y/Y July +1.3% +1.4%
08:00 Germany IFO - Business Climate August 103.3 102.8
08:00 Germany IFO - Current Assessment August 111.6 110.8
08:00 Germany IFO - Expectations August 95.6 95.0
16:15 U.S. FOMC Member Pianalto Speaks© 2000-2026. Sva prava zaštićena.
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