Forex: Monday’s review

Yesterday the euro rose against the dollar to a maximum of the beginning of May, after the September manufacturing activity in the area of ​​the Federal Reserve Bank of New York dropped more than expected by a decline in orders. General economic index of the New York Fed declined to -10.41 versus -5.85 in August, reaching the lowest level since April 2009 values. Economists had expected a drop to -2. Factories slow conveyors weakened exports, limited business investment and lower household spending. Unemployment rate is more than 8% over three years, and the weakening of the economy this year to explain what the Fed policymakers who decided to additional stimulus during a recent meeting.

Earlier, the euro weakened against the yen and the U.S. dollar for the first time in five days amid unrest in Spain, and after the Spanish Prime Minister Mariano Rajoy said that Spain may need financial assistance. As market participants expect the meeting, the Prime Minister of Spain with the Prime Minister of Italy, Mario Monti, to be held in Rome on 21 September. The next day, German Chancellor Angela Merkel will hold talks with French President François Hollande. The single currency fell against most of its 16 major counterparts after European leaders last week in Cyprus to discuss the terms of salvation and the role of the European Central Bank. Euro also declined following the demonstrations in Madrid, which took place two days and were directed against the additional austerity measures.

The dollar rose against the yen on expectations of intervention by the Japanese authorities.

British pound updated four month high against the dollar on optimism about the third round of quantitative easing from the Fed.