American focus: dollar weakened

European currency strengthened against the U.S. dollar, which has helped to publish data on Germany and the ECB's monthly economic report.

The Federal Statistical Office reported that by the end of June German exports rebounded, which was supported by strong demand from countries not included in the composition of the euro area, while the volume of imports unexpectedly declined, reflecting the weakness in domestic demand.

According to the report, the volume of exports, adjusted for working days and seasonal changes, rose in June by 0.6%, compared with a revised fall of May at 2%. However, the growth rate was weaker than the average forecast from the experts - at the level of 0.9 percent. As for imports, its volume decreased by 0.8%, after rising 1.4% in May, which was revised. Economists had forecast that imports will rise by 0.5%.

As a result of opposing trends in export and import trade surplus with Germany in June this correction was 15.7 billion euros in May from a revised value of 14.6 billion euros. These were better than analysts' forecasts, according to which the surplus was 15.2 billion euros.

As for the ECB bulletin, he confirmed the intention of the ECB to keep interest rates at the current (0.5%) and a lower level for a long time. Monetary policy will remain accommodative for as long as it is required in order to support the economic recovery, which is expected to grow by gradual pace over this year and next.

Meanwhile, the ECB has identified several risks to the economic recovery of the region, namely, the continuing uncertainty in global financial markets, the likelihood of a weaker-than-expected domestic and external demand and the inability of national governments in Europe to the timely and consistent implementation of the necessary reforms.

The U.S. dollar fell against major currencies after data on the U.S. labor market. At the end of last week, the number of employees in the U.S. who first applied for unemployment benefits increased slightly, rising from nearly five-year low, but remained close to levels that point to a gradual improvement in the labor market. According to the report, the seasonally adjusted number of initial claims for unemployment benefits rose in the week ended August 3, 5000, reaching 333 thousand worth noting that according to the average forecasts of experts the value of this parameter should be increased to 336 tys.Krome order it was reported that the previous week was revised upward to the level of 328 thousand to 326 thousand

The yen rose against the dollar on the fact that the Bank of Japan did not make any changes in monetary policy by abstaining from the expansion of the unprecedented stimulus programs. In this case, the Central Bank did not revise and assess the current state of the Japanese economy, and macroeconomic forecasts. The statement said the Bank of Japan, its leaders decided to wait for new signals that will clarify the situation.

Central Bank noted in a statement after the meeting that the economy "is recovering at a moderate pace," while others "as a whole gradually sent to revive growth" despite the lingering pockets of economic weakness. The Bank of Japan has also confirmed the growth of exports and drew attention to the weakening of the investment company which ceased amid rising corporate profits.

We also add that the Japanese government approved a medium-term financial plan, which includes a reduction of $ 4 trillion. yen in each of the next two years in order to achieve the national goals of financial reform in 2015 financial year.

It is learned that the government intends to achieve a primary deficit of 18.9 trillion yen in fiscal year 2014 and 15.2 trillion yen deficit in 2015 fiscal year, against 23.2 trillion. yen in the current year.

Reduce costs in conjunction with other measures, as well as optimistic goals of economic growth, should take primary deficit to around 3.3 percent of gross domestic product in 2015 fiscal year, - the government of the country. That is, the rate should be reduced by half compared with 6.6 percent in fiscal year 2010.

However, the plan assumes that the government should take additional measures and balance the budget by 2020 financial year, as according to the latest plan primary balance will still be minus 2.0 per cent of GDP in that year.