European session: the euro rose

Data:
06:00 Germany CPI, m/m (finally) September 0.0% 0.0% 0.0%
06:00 Germany CPI, y/y (finally) September +2.0% +2.0% +2.0%
06:45 France CPI, m/m September +0.7% +0.1% -0.3%
06:45 France CPI, y/y September +2.1% +2.3% +2.2%
07:30 U.S. FOMC Member Yellen Speaks -
08:00 Eurozone ECB Monthly Report October
 

The euro rose against the dollar and the yen, having played incurred at the beginning of the European session losses after lowering the credit rating of Spain. Yesterday, the rating agency Standard & Poor's downgraded Spain's credit rating two notches to BBB-from BBB +, which is close to "junk" status. Growth in the euro may be due to expectations of players that fall Spanish rating can push the country to the formal request for financial assistance, which potentially opens the door to activate the program OMT. In addition, the support of the measure, today reminded the players and the October newsletter ECB.

ECB noted the importance and effectiveness of the program OMT and signaled that he is ready to activate the program as needed. The Bank expects that in 2012 the rate of inflation will not exceed 2%, and then falls below this mark. Despite running the ECB measures, it is expected that the economy "will continue to remain under pressure in the inevitable process of balance sheet adjustment in the financial non-financial sector, as well as high unemployment and uneven recovery processes occurring in the world economy", - stated in the bulletin.

In addition to the German inflation figures for September, which coincided with forecasts (0.0% m / m, +2.0% y / y vs. prev. +2.1%), Today also published a report on the French CPI (+2.2% y / y with the expected increase +2.4% to +2.5% in September, -0.3% m / m vs. 0.0%).

Investors' attention focused on the meeting of finance ministers and central bankers the Group of Seven in Tokyo, which will be held later on Thursday.

The Japanese yen fell against the dollar after Japan's Economy Minister Maehara said that Japan may conduct an intervention on their own, without the approval of the United States, as the interests of Japan and the U.S. conflict in terms of exchange rates. The minister added that the purchase of foreign bonds by the Bank of Japan - one of the ways to increase the monetary base and the Bank of Japan will decide how to buy foreign bonds.

The Australian dollar rose against the U.S. dollar after today's publication of positive statistics on the labor market. As reported by the Australian Bureau of Statistics, in September, the number of employed people in the country grew by 14,500, showing the largest increase in new jobs since May 2012. It should be noted that the figure for the third consecutive month goes better than analysts' expectations.