Forex: Monday’s review

Yesterday the euro broke a seven-day rise against the yen as European finance ministers meet to discuss the situation in Spain and the solution to the debt crisis in the eurozone.

The single currency fell against most major currencies after data showed that the level of German industrial production declined, adding fears that the debt crisis in Europe affects economic growth in Germany. German Chancellor Angela Merkel's visit to Greece for the first time after the start of the financial turmoil in 2009. The yen rose as investors sought safe-haven assets.

Pound continued its decline against the dollar, as a survey by Lloyds Bank showed that the assessment of the prospects of employment index fell in September to -49 from -43 in August. The pound also recorded the 7th daily decline against the euro, while showing the longest drop since November 2009. Analysts expect the pound could fall to a level of $ 1,5912-1,5900, which is the lowest rate in more than a month after he failed last week to break key resistance levels.

The yen rose against the dollar on downgrade the World Bank forecast for GDP growth for Asia Tihoookeanskogo region (excluding Japan and India) due to a slowdown in the Chinese economy. It is expected that the growth rate of the economy of the region was 7.2% in the current year, whereas previously predicted 7.6%. It is worth noting that this will be minimal increase of GDP since 2001. Moreover, the forecasts for 2013 were also up 7.6% to 8%, as reported previously.