The dollar rose significantly against the euro , which in the first place was due to the release of weak data on Germany, as well as the better -than-expected report on U.S. GDP .
The Federal Labor Agency said that the number of unemployed in Germany rose by 7,000 in August compared with the previous month . Economists forecast that the unemployment rate will decrease by 5000. The unemployment rate seasonally adjusted remained unchanged at 6.8 percent. The rate of unemployment in line with economists' expectations . According to data released by Destatis, the number of unemployed fell by 40,000 in July compared with the previous month to 2.28 million. At the same time , the unemployment rate fell to 5.3 percent, a few sokartivshis from 5.4 percent in June.
As for the U.S. data , the Commerce Department reported that GDP increased by 2.5 percent in the second quarter , reflecting an upward revision from the initial estimate of 1.7 percent growth . Economists had expected a somewhat less strong upward revision in the GDP growth rate to 2.3 percent. Corporate profits rose 2.6 % in the second quarter compared with the first, which indicates that the company should be in a good position to add jobs and increase investments in the coming months.
The submitted report paints a picture of the economic recovery is gaining momentum, but remains weak by historical standards . Uttered by the value of GDP is the last significant factors that Fed officials will see before they meet on September 17-18 to discuss whether to start down its bond buying program by $ 85 billion a month. The Fed signaled earlier this year that it wanted to reduce these purchases, if the economy continues to show improvement . Many economists believe that they can start doing it as soon as next month.
The Canadian dollar fell against the U.S. currency , as economic data from the U.S. and Canada were given a favorable assessment of the prospects of the U.S. economy and the U.S. dollar strengthened . Note that the data presented today in Canada showed that the current account deficit of the balance of payments in Canada increased in the 2nd quarter and seasonally adjusted totaled 14.58 billion Canadian dollars against 13.45 billion Canadian dollars in the 1st quarter. The data for the 1st quarter were revised . In trade in goods in the 2nd quarter was recorded over a significant deficit , as import growth exceeded export growth . Meanwhile, the deficit of trade in services has also increased .
Meanwhile , another report showed that Canadian producer prices rose in July, slightly above market expectations and in line with the increase in the previous month, mainly due to higher costs for energy and transport. These data are provided by Statistics Canada . According to the agency prices for manufactured goods rose 0.3 % in July , slightly below market expectations of 0.4% growth .
Prices for raw materials used by manufacturers , rose 4.2 % in July , well above the consensus forecast of growth of 1.2% and it is the biggest gain in two years . The price increase was mainly due to 9.7 % increase in the price of crude oil .
Germany's EU harmonized inflation slowed in August, and to a larger extent than expected by economists, latest data showed Thursday.
The harmonized index of consumer prices (HICP) increased 1.6 percent on an annual basis in August, following the previous month's 1.9 percent rise, preliminary estimates from the Federal Statistical Office revealed. Economists were looking for a 1.7 percent growth.
The HICP stayed unchanged compared to July, when they recorded a 0.4 percent gain. Economists had forecast a more modest increase of 0.1 percent.
At the same time, inflation as per the consumer price index (CPI) eased to 1.5 percent in August from 1.9 percent in July. The CPI inflation was forecast to be 1.7 percent.
Sequentially, consumer prices stayed unchanged in August, after rising by 0.5 percent a month earlier, data showed. The index was expected to grow 0.1 percent month-on-month.
EUR/USD $1.3250, $1.3350, $1.3430, $1.3450
USD/JPY Y96.50, Y97.50, Y98.00, Y99.00, Y99.25, Y99.50
EUR/JPY Y130.00
GBP/USD $1.5400, $1.5450, $1.5500, $1.5600
EUR/GBP stg0.8500
EUR/CHF Chf1.2310
AUD/USD $0.8860, $0.8950, $0.8980, $0.9065
AUG/NZD NZ$1.1500
USD/CAD C$1.0420, C$1.0550, C$1.0560
CAD/JPY Y92.80
Canadian producer prices rose in July, matching market expectations and the previous month's increase, on higher costs for energy products and motor vehicles, Statistics Canada said Thursday.
The data agency's industrial product price index advanced 0.3% in July, which was in line with market expectations, according to a report from economists at Royal Bank of Canada.
Prices for raw materials used by manufacturers surged 4.2% in July, well above the market consensus for a 0.8% advance and the biggest gain in over two years. The bigger-than-anticipated gain was attributed to a 9.7% rise in crude oil prices.
EUR/USD
Offers $1.3420, $1.3395/405, $1.3345/55, $1.3300
Bids $1.3250, $1.3225/20, $1.3205/00, $1.3190
GBP/USD
Offers $1.5680/85, $1.5640/50, $1.5615/20, $1.5600, $1.5545/55
Bids $1.5490, $1.5460/50, $1.5425/20, $1.5410/00, $1.5380
AUD/USD
Offers $0.9080, $0.9045/50, $0.9020, $0.8995/00, $0.8970/80
Bids $0.8910/00, $0.8890, $0.8880/75, $0.8800
EUR/JPY
Offers Y132.00, Y131.80, Y131.55/60, Y131.20, Y130.80/00
Bids Y129.85/80, Y129.50, Y129.20
USD/JPY
Offers Y98.90/00, Y98.50
Bids Y97.50/45, Y97.25/20, Y97.05/00, Y96.50
EUR/GBP
Offers stg0.8700, stg0.8665/75, stg0.8650/55
Bids stg0.8545/40, stg0.8520-10
Switzerland's employment continued to increase in the second quarter despite a fall in the secondary sector, the Federal Statistical Office said Thursday.
The number of employed increased to 4.166 million from 4.152 million in the previous quarter. The decline in the secondary sector was offset by a sharp improvement in the tertiary sector.
Data showed that employment in secondary sector dropped by 0.4 percent, while that in tertiary gained 2.3 percent.
However, the employment outlook indicator and difficulty in recruiting personnel fell compared with the same quarter of the previous year, it said.
Germany's unemployment increased by 7,000 in August from the previous month, the Federal Labor Agency reportedly said Thursday. Economists had forecast unemployment to fall by 5,000.
The jobless rate remained unchanged at seasonally adjusted 6.8 percent. The rate came in line with economists' expectations.
According to the figures released by Destatis, the number of unemployed decreased by 40,000 in July from the prior month to 2.28 million. At the same time, the jobless rate dropped slightly to adjusted 5.3 percent from 5.4 percent in June.
EUR/USD $1.3250, $1.3350, $1.3430, $1.3450
USD/JPY Y96.50, Y97.50, Y98.00, Y99.00, Y99.25, Y99.50
EUR/JPY Y130.00
GBP/USD $1.5400, $1.5450, $1.5500, $1.5600
EUR/GBP stg0.8500
EUR/CHF Chf1.2310
AUD/USD $0.8860, $0.8950, $0.8980, $0.9065
AUG/NZD NZ$1.1500
USD/CAD C$1.0420, C$1.0550, C$1.0560
CAD/JPY Y92.80
01:00 Australia HIA New Home Sales, m/m July +3.4% -4.7%
01:00 New Zealand ANZ Business Confidence August 52.8 48.1
01:30 Australia Private Capital Expenditure Quarter II -4.1% Revised From -4.7% +0.2% +4.0%
The dollar held near a four-week high against a basket of its peers before U.S. data forecast to show the economy grew faster than initially estimated, adding to the case for the Federal Reserve to slow monetary stimulus. Revised figures from the U.S. Commerce Department today will probably show gross domestic product expanded at a 2.2 percent annualized rate in the second quarter, according to a Bloomberg News survey of economists, compared with the initial reading of 1.7 percent. Separate data today are projected to show a decline in applications for jobless benefits. Fed policy makers are debating whether the economy is strong enough to allow them to pare back monthly purchases of $85 billion in Treasuries and mortgage debt. Officials will cut the amount at their next meeting on Sept. 17-18, according to 65 percent of economists in an Aug. 9-13 Bloomberg survey.
The Swiss franc weakened against most of its 16 major counterparts as ABN Amro Group NV said that the risk aversion spurred by mounting tension in Syria is going to ease. The U.S. and its NATO allies began presenting their justification for military action against Syria as they advanced plans for launching strikes and prepared evidence that the Middle Eastern regime used chemical weapons on its own people. Syrian President Bashar al-Assad’s government has denied allegations it used chemical weapons.
German figures due today are projected to show the number of people out of work decreased in August for a third month, according to analyst estimates. The unemployment rate probably held near a two-decade low of 6.8 percent.
Another report will probably show German inflation slowed in August, signaling price pressures remain contained in Europe’s largest economy. The consumer price index, calculated using a harmonized European Union method, rose 1.7 percent from a year earlier, compared with 1.9 percent in July, according to the median economist estimate in a Bloomberg survey.
EUR / USD: during the Asian session the pair fell to $ 1.3310
GBP / USD: during the Asian session, the pair is trading around $ 1.5530
USD / JPY: during the Asian session the pair is trading around Y97.70
A very light domestic calendar today with focus later on US Q2 GDP second reading, weekly jobless claims.
(pare/closed(00:00 GMT +02:00)/change, %)
EUR/USD $1,3339 -0,38%
GBP/USD $1,5526 -0,12%
USD/CHF Chf0,9218 +0,4
USD/JPY Y97,70 +0,68%
EUR/JPY Y130,32 +0,31%
GBP/JPY Y151,67 +0,57%
AUD/USD $0,8938 -0,44%
NZD/USD $0,7799 +0,15%
USD/CAD C$1,0486 +0,09%
01:00 Australia HIA New Home Sales, m/m July +3.4% -4.7%
01:00 New Zealand ANZ Business Confidence August 52.8 48.1
01:30 Australia Private Capital Expenditure Quarter II -4.1% Revised From -4.7% +0.2% +4.0%
07:15 Switzerland Employment Level Quarter II 4.15 4.14
07:55 Germany Unemployment Change August -7 -5
07:55 Germany Unemployment Rate s.a. August 6.8% 6.8%
12:00 Germany CPI, m/m (Preliminary) August +0.5% +0.2%
12:00 Germany CPI, y/y (Preliminary) August +1.9% +1.7%
12:30 Canada Industrial Product Prices, m/m July +0.3% +0.4%
12:30 Canada Current Account, bln Quarter II -14.1 -14.9
12:30 Canada Raw Material Price Index July +0.3% +1.2%
12:30 U.S. PCE price index, q/q Quarter II +1.8% +1.8%
12:30 U.S. PCE price index ex food, energy, q/q Quarter II +0.8% +0.8%
12:30 U.S. Initial Jobless Claims August 336 329
12:30 U.S. GDP, q/q (Revised) Quarter II +1.7% +2.3%
12:50 U.S. FOMC Member James Bullard Speaks
16:00 Eurozone ECB's Jens Weidmann Speaks
18:00 U.S. FOMC Member Laker Speaks
22:45 New Zealand Building Permits, m/m July -4.0% +1.3%
23:01 United Kingdom Gfk Consumer Confidence August -16 -13
23:15 Japan Manufacturing PMI August 50.7
23:30 Japan Unemployment Rate July 3.9% 3.9%
23:30 Japan Household spending Y/Y July -0.4% +0.4%
23:30 Japan Tokyo Consumer Price Index, y/y August +0.4% +0.5%
23:30 Japan Tokyo CPI ex Fresh Food, y/y August +0.3% +0.4%
23:30 Japan National Consumer Price Index, y/y July +0.2% +0.7%
23:30 Japan National CPI Ex-Fresh Food, y/y July +0.4% +0.7%
23:45 U.S. FOMC Member James Bullard Speaks
23:50 Japan Industrial Production (MoM) (Preliminary) July -3.1% +3.9%
23:50 Japan Industrial Production (YoY) (Preliminary) July -4.6% +2.0%
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