American focus: the euro rose sharply

The dollar fell against most major currencies, as speculation arose that Spain could ask for help, and the increased demand for Italian bonds, influenced increasing appetite for riskier assets.

The dollar continued to trade down, even after the published data showed that the number of initial claims for unemployment benefits fell to the lowest level in four years. The number of initial claims for unemployment benefits during the week (September 30 - October 6) decreased by 30,000 to 339,000 level. However, this decline is largely due to the fact that one state has not published data.

Earlier, the euro has significantly decreased since the rating agency S & P downgraded Spain's credit rating by two notches, but because it has increased the likelihood that Spain, for financial support, the euro has soared.

The dollar index (DXY), which is used to track the value of the dollar against the currencies of the U.S. partner, fell 0.2% to 79.779.

The Australian dollar strengthened after the published data, according to which it was reported that the number of employed increased by 14,500 people in September, which was almost three times more than the average estimate of economists. At the same time, the unemployment rate rose to 5.4%, reaching its highest level since April 2010.

The euro broke a three-day decline against the yen on speculation regarding the financing of Spain. Note also that the profitability of Spanish 10-year bonds fell to 5.76% today.

During the U.S. session, the dollar fell sharply against the yen, after a significant increase in the early afternoon. However, the combination of weak economic performance in Japan, increased pressure on the Bank of Japan in order to soften its monetary policy, as well as the probability of the intervention to the depreciation of the yen is likely to retard the growth of the Japanese currency in the near future.