EU session review: Haven demand supports Swiss franc

Data released:
07:55     Germany     Unemployment (July) seasonally adjusted    -11K    +3K    -8K
07:55     Germany     Unemployment (July) seasonally adjusted, mln    2.957    -    2.968 (2.967)
07:55     Germany     Unemployment rate (July) seasonally adjusted    7.0%    7.0%    7.0%
07:55     Germany     Unemployment (July) seasonally unadjusted, mln    2.939    -    2.893
07:55     Germany     Unemployment rate (July) seasonally unadjusted    7.0%    -    6.9%
09:00     EU(17)     Economic sentiment index (July)    103.2    104.0    105.4 (105.1)
09:00     EU(17)     Business climate indicator (July)    0.45    0.85    0.95 (0.92)
10:00     UK     CBI retail sales volume balance (July)    -5%    4%    -2%

The Swiss franc and the yen held close to recent highs against the dollar on Thursday amid US debt ceiling worries that stoked haven demand for both currencies.
Ongoing anxiety over eurozone government debt also added to market nervousness, weighing on the euro.
The Australian and New Zealand dollar, both of which hit record highs against the dollar on Wednesday were also in demand. Some analysts said the two currencies were displaying haven characteristics amid continuing worries over US and eurozone finances.

EUR/USD tested resistance at $1.4400, but failed to break above. Later rate fell to the lows around $1.4250, triggering some stops and bids.


GBP/USD was under pressure after the release of dissapointing CBI report (-5% in July). Rate fell to $1.6290 before recovered to $1.6322.

USD/JPY slowly recovers from lows on Y77.60.

US data starts at 1230GMT when initial jobless claims are expected to rise 2,000 to 420,000 in the July 23 week after see-sawing in the previous weeks. Seasonal adjustment difficulties related to the usual auto retooling period should continue to be a factor.