American focus: the U.S. currency regained much of the lost ground

The euro exchange rate fell sharply against the dollar, helped by the disappointing results of the report IBD / TIPP economic optimism on. As it became known, the economic optimism index fell in May by 2.4%, to 45.1 from 46.2 in April. Values ​​above 50 indicate optimism of consumers, and below 50 - the pessimistic. The index is up 2.1 points below the average for the 12 months, which is 47.2, but 0.7 points above the level of 44.4 reached in December 2007, when the economy entered a recession. The index of economic expectations for the next six months, which reflects an assessment of the economic outlook by consumers in six months, fell by 8.5% to 43.1. The index of personal financial outlook - an indicator of the views of Americans about their personal finances for the next six months - rose by 2.1%, to 54. The index of confidence in U.S. economic policy - an indicator of opinions about how the government's economic policy - fell by 0.5% to 38.3.

The cost of the British pound fell against the U.S. dollar, which has been associated with the triggering of stop orders on the pair at 1.5520. Note that the volume of trading in the markets is quite low due to public holidays in the UK and Asia, and this reinforces the volatility.

We also add that in part influenced by the dynamics of trade data from the British Retail Consortium (BRC), which showed a monthly basis, the consumer price index fell 0.8 percent, which led to the fact that the annual rate rose by only 0.4% , compared with an increase to 1.4 percent per year in March. In addition, it was reported that non-food prices fell by 1.1% on the month and by 1.0% per year, which followed a growth of 0.2 percent per year in March. In the non-food sector, the biggest drop in prices was observed for clothing, footwear and electrical goods. Note that the cost of clothing and footwear fell by 2.5% on the month and 4.7% for the year, compared with a fall of 2.2% in March. We also learned that the price of electrical goods fell 1.2% on the month and 4.8% over the year. The British Retail Consortium also reported that personal accessories, women's and men's clothing was recorded sharp acceleration of deflation in April, while the shoe was deflation that followed the rise in prices in March. The data also showed that food inflation slowed in April to 2.9% compared with 3.5% in March. Food inflation for fresh food has declined to 3.1% from 3.6% in March.

The cost of the Australian dollar fell against the U.S. dollar, after it became known that the Reserve Bank of Australia unexpectedly cut its benchmark interest rate to a record low to support economic growth, following the example of the European Central Bank, which lowered its key interest rate by a quarter point last week . Note that the Central Bank of Australia cut the official interest rate by 25 basis points to 2.75 percent. Economists had expected the Reserve Bank decision to keep the sample rate at 3 percent.

Previously, the RBA noted that the outlook for inflation allows for rate cut if needed to support the demand.

In a statement issued after the meeting today, RBA Governor Glenn Stevens said the bank will use the reduction in key interest rates to encourage sustainable growth in the economy, in line with achieving the inflation target.

Recall that the RBA began its cycle of rate cut in November 2011, and since then it has decreased by 200 basis points.

Meanwhile, we add that today, the RBA kept its outlook on prices, saying that the level of inflation over the next one to two years will meet its goal. However, in the RBA expressed concern about the "extraordinary" power of the local currency.