Forex: Monday’s review

Yesterday, during the American session, the euro has stabilized in a narrow range after reaching a two-day minimum. After the speech, Draghi last week, the players remain cautious, as the ECB may disappoint investors hoping for a more active anti-crisis measures. Market participants are preparing for possibly making a key week, central banks with respect to monetary policy on both sides of the Atlantic.

Earlier, the euro fell slightly after reaching on Friday the 3-week high against the U.S. dollar, despite the promise of a joint German Chancellor Angela Merkel and Italian Prime Minister Mario Monti to do everything to protect the euro area, given by them on Saturday and despite the decline in yields of Spanish government bonds.

Also negative for the single currency have data showing that economic sentiment in the euro zone have deteriorated more than expected in July due to declining confidence in all sectors. Reducing fixed for the fourth consecutive month. The survey data from the European Commission showed that the index of economic sentiment fell to 87.9 in July from 89.9 a month earlier. The index of economic confidence in the industry continued its downward trend that began in March. Industrial confidence fell to -15 in July from -12.8 the previous month.

The pound fell after the Bank of England data showed that the number of approved applications for mortgages fell in June, reflecting economic weakness in the month due to the extra holidays and a very wet weather. Consumer lending on credit cards has increased, but the mortgage lending for house purchase fell to its lowest level over the past year and a half. Recall that last week, official data showed that the economic indicators in the second quarter of 2012 recorded the biggest fall since the beginning of 2009.