Forex: Wednesday’s review

During the current session, the dollar showed mixed performance against other major currencies. The important news of the day, which influenced the course of trade, was the information that the rating agency Standard & Poor's revised its outlook on Greece to "negative" from "stable", stating that you may need further assistance from international lenders. But despite this, the long-term and short-term sovereign credit rating in foreign currency and local currency remained unchanged. Positive news of the day was the report, which states that labor productivity in the second quarter rose more than expected.

During the first half of the trading session, the euro declined against the dollar, and then was able to play more than half of the losses. In such a dynamic impact data on industrial production in Germany, which were far below expectations.

Pound at the beginning of the session fell sharply, but managed to recover from, updating the intraday high. Currency rose against the euro and U.S. dollar, when the governor of the Bank of England Governor Mervyn King signaled that the reduction in interest rates did not significantly alter the economic outlook. He also expressed less concern than expected on the market. King also warned that the drop in interest rates would be counterproductive, and it does not lead to significant improvement in the UK economy. Strengthening of the pound also contributed to less negative tone on inflation report, which notes that official data on the growth of gross domestic product exaggerate the underlying weakness of the economy.