American focus: the euro exchange rate fell

Euro fell against the dollar, reaching in this two-week low, helped by a weak presented a report on the euro area, which added speculation that the European Central Bank will cut interest rates to stimulate economic growth. It should be noted that the sharp drop in business activity in Germany has overshadowed the data output to ease the recession in France in April. As it became known, the PMI index for the services sector in the euro area rose to the level of April of 46.6, compared with 46.4 in March, below the 50 level that separates growth from contraction. Add that bad index for the euro area as a whole has coincided with a decrease in the index for German companies that make up the backbone of the economy in the eurozone. Meanwhile, studies have shown that the euro-zone companies are cutting jobs at a faster pace this month, after the March survey found that companies are firing employees at a slower pace. Economists note that at the moment clarity about the outlook completely absent, and as long as this situation remains, it will slow economic growth, and the decline will continue.

Sterling fell to a two-week low against the dollar, but later still managed to recover most of the losses after a report from the Confederation of British Industry showed that the balance of industrial orders declined significantly in April, reaching with its lowest level in half a year, in spite of Economists forecast a modest improvement, which was mainly due to the fall in domestic demand. According to the report, the balance of industrial orders fell in April to a level of -25, compared to -15 in March. Note that according to the average forecast of most economists, the value of this index would grow to -14. We add that the latest reading was the lowest since October 2010. In addition, the data presented today show that in the three months ended April, the number of new orders fell slightly, while the index, which measures expectations for the next quarter orders grew. Note also that the number of producers who expect to increase the total volume of new orders was 22%, while 28% expected a decrease of orders, against which the balance amounted to 6%. Note that the balance was much lower than the expected 14%, but remained above the long term average level to 3%.

The Canadian dollar traded at almost a six-week low against the U.S. dollar on the data from Europe and China, which indicate a slowdown in global economic growth, undermining demand for Canadian exports. Meanwhile, we observe the dynamics of trading was influenced by a report from Statistics Canada, which showed that retail sales in February rose at a faster pace than expected. In real terms, however, sales remained at the same level, which means that the February increase was driven mainly by higher prices, particularly for gasoline. Agency data showed that retail sales rose 0.8% to 39.55 billion Canadian dollars ($ 38.54 billion), which exceeded the expected 0.3%. Excluding the auto sector index rose by 0.7% m / m vs. 0.5% expected and revised January figure of 0.4%.