American focus: the euro rebounded from lows

The euro rose against the dollar, recovering from session lows, after data from Automatic Data Processing, Inc (ADP) showed that in May, the level of private sector employment increased by 135 thousand vs. 171 thousand and 113 thousand (revised from 119 thousand) in April. According to ADP, employment in firms with the number of employees from 1 to 49 increased by 58 thousand jobs in May. The average amount of business with 50-499 employees attracted 39 thousand new employees. Large firms and enterprises with 500 employees or more added 39 thousand new jobs. Employment in the service sector increased by 138 million in May, and manufacturing employment fell again, this time for 6 thousand positions.

The obtained data raise concern about the state of the labor market in the United States on the eve of Friday's employment report from the Labor Department.

The pound rose after the UK services PMI showed strong growth. Activity in the UK service sector, which occupies a dominant position in the national economy in May grew at the fastest pace in more than a year. This pickup in activity is likely to continue, as new orders increased most rapidly in three years. These are the results of a monthly survey conducted by Markit and the Chartered Institute of Purchasing & Supply. Increased activity in the services sector - the strongest signal yet that the recovery that began in the 1st quarter, should continue in the 2nd quarter onwards. This makes it highly unlikely the Bank of England to provide additional economic stimulus at the meeting, which will end on Thursday.

Purchasing Managers Index (PMI) for the service sector rose in May to 54.9, its highest level since March 2012, against 52.9 in April. Value exceeded the forecasts of economists who had expected growth of the index to 53.1.

The Australian dollar fell after the release of the worst in the last two years of statistics on the country's GDP. As shown by the data that was presented today by the Australian Bureau of Statistics, in the first quarter of the country's economy has grown, but not enough to confirm the estimates of experts. According to the report, the seasonally adjusted gross domestic product in Australia rose in the first quarter, up 0.6 percent from the previous three months, which was below analysts' average forecast of 0.8 percent increase, after 0.6 percent growth in fourth quarter 2012. In addition, the data showed that the volume of trade increased by 2.7 percent, while real gross domestic income rose by 1.1 percent.

The Australian Bureau of Statistics also reported that the main contribution to GDP growth was marked by net exports, which rose by 1.0 percentage points, and final consumption expenditure, which increased by 0.4 percentage points. Add that offset part of the decline in the overall growth of gross fixed capital formation (-0.7 percentage points) and the change in inventories (-0.4 percentage points).

It should be noted that in the context of the main sectoral contribution to GDP was recorded from agriculture, forestry and fishing (2.6 percent), transportation, storage and postal services (2.4 percent), financial and insurance services (in 2.2 percent), retail trade (2.1 per cent) and mining (1.5 per cent).

Financial and insurance services contributed to the increase in gross domestic product by 0.2 percentage points, while the other major sub-sectors helped lift gross domestic product by 0.1 percentage points.

At the same time, the report showed that the annualized gross domestic product grew by 2.5 percent, which was also below the average forecast of experts at the level of 2.7 per cent increase, which followed a growth of 3.1 percent over the previous three months.