Asian session: The euro is under pressure

The Australian dollar rose after a government report showed employers added more jobs than economists had estimated. Thailand’s baht advanced after incoming Prime Minister Yingluck Shinawatra said her government intended to let the currency strengthen.
The euro snapped yesterday’s loss against the dollar and yen after Moody’s said it differentiates “significantly” among European periphery countries, suggesting it may not imminently cut Ireland’s rating to junk in line with Portugal and Greece.
The European Central Bank will increase its main refinancing rate to 1.50 percent today from 1.25 percent, according to all economists in a  survey. The central bank may increase borrowing costs further in the fourth quarter, according to a separate survey.


European data starts at 1000GMT by German in industrial output data. At 1145GMT, the ECB decision is due, which will be followed at 1230GMT 
by the usual press conference with ECB President Jean-Claude Trichet. 
UK data includes at 0830GMT Industrial Production/Manufacturing Output data is due for release. The data is expected to show a bit of a rebound from the previous month, with industrial production rising 1.3% m/m but remaining lower by a reading of -0.4% y/y. Manufacturing output is seen 
up 1.1% m/m, 2.2% y/y. The Bank of England Monetary Policy Committee makes it's announcement at 1100GMT but no change is expected in either 
the current 0.50% overnight rate or the 200 billion level of asset purchases. 
At 1215GMT, the ADP National Employment Report is due. Last month the unexpectedly soft reading caused some to revise their estimates 
lower. The lackluster 54,000 increase in non-farm payrolls justified the  revision. At 1230GMT, initial jobless claims are expecting toll to 420,000 in the July 2 week. Claims have been above 420,000 since the April 30 week. In the July 25 week, a labor analyst said there no special factors 
contributing to the decline of 1,000 claims.