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Overview of the main economical events of the current day - 09/07/2013
The dollar made a pause in its growth
The dollar was correcting on Monday after prior days significant growth and without any considerable macrostatistics data on the USA at the beginning of the week. Having reached important technical levels of many pairs market participants corrected their positions. Correction can continue but on Wednesday FOMC meeting minutes will be released and also the Fed governor Ben Bernanke will make a speech about the coming 100th anniversary of the American central bank which will be celebrated in December of this year.
The euro rose moderately on Monday amid the Eurogroup meeting and the achieved agreement on financing of Greece, stabilization of political situation in Portugal and the speech of the ECB head Mario Draghi in the European Parliament – despite weak trade balance and industrial production data of Germany and investors’ confidence in the euro-zone. At the end of Monday finance ministers of the euro-zone achieved an agreement on bailout aid to Greece. The first sum of 2.5 billion euros will be paid to Athens in July, which will allow the country to escape the crisis of financing threat.
The ECB governor Mario Draghi making speech in the European Parliament repeated again that the monetary policy would stay mild as long as it would be necessary and interest rates would be kept at low levels for a long period of time. Although the situation in the euro-zone hasn’t stabilized yet and downside risks for the economy maintain, the ECB is awaiting a gradual economic recovery in the second half of the year although at a slow rate.
Germany’s trade balance surplus for May decreased to 14.1 bln euros from 17.5 bln prior month – exports fell by 2.4% m/m instead of a sluggish growth. Industrial production of Germany fell by 1% in May in comparison with the previous month while it was expected to decrease only by 0.5%, which was linked to a considerable drop in construction and energy sectors. The recovery of the largest European economy is still unstable amid uncertain prospects of the foreign trade. Sentix confidence index of European investors also dropped in June to -12.6 in comparison with the reading in May -11.6.
The political situation in Portugal stabilized on weekend after the prime minister had appointed the former Minister of Foreign Affairs, who resigned recently, the vice prime minister, which allowed to save the ruling coalition and avoid new elections. S&P rating agency lowered the forecast of Portugal current rating to negative one due to the growing political uncertainty which could undermine the county’s return to the debt market.
Meanwhile the Bank of France increased the prospects of the economic growth in the second quarter up to 0.2% in comparison with 0.1% which was predicted before. Also the Bank’s report released on Monday showed the growth of business confidence in June. Manufacturing business confidence of France grew to 96 in June in comparison with 94 in May.
By MasterForex Company
The dollar made a pause in its growth
The dollar was correcting on Monday after prior days significant growth and without any considerable macrostatistics data on the USA at the beginning of the week. Having reached important technical levels of many pairs market participants corrected their positions. Correction can continue but on Wednesday FOMC meeting minutes will be released and also the Fed governor Ben Bernanke will make a speech about the coming 100th anniversary of the American central bank which will be celebrated in December of this year.
The euro rose moderately on Monday amid the Eurogroup meeting and the achieved agreement on financing of Greece, stabilization of political situation in Portugal and the speech of the ECB head Mario Draghi in the European Parliament – despite weak trade balance and industrial production data of Germany and investors’ confidence in the euro-zone. At the end of Monday finance ministers of the euro-zone achieved an agreement on bailout aid to Greece. The first sum of 2.5 billion euros will be paid to Athens in July, which will allow the country to escape the crisis of financing threat.
The ECB governor Mario Draghi making speech in the European Parliament repeated again that the monetary policy would stay mild as long as it would be necessary and interest rates would be kept at low levels for a long period of time. Although the situation in the euro-zone hasn’t stabilized yet and downside risks for the economy maintain, the ECB is awaiting a gradual economic recovery in the second half of the year although at a slow rate.
Germany’s trade balance surplus for May decreased to 14.1 bln euros from 17.5 bln prior month – exports fell by 2.4% m/m instead of a sluggish growth. Industrial production of Germany fell by 1% in May in comparison with the previous month while it was expected to decrease only by 0.5%, which was linked to a considerable drop in construction and energy sectors. The recovery of the largest European economy is still unstable amid uncertain prospects of the foreign trade. Sentix confidence index of European investors also dropped in June to -12.6 in comparison with the reading in May -11.6.
The political situation in Portugal stabilized on weekend after the prime minister had appointed the former Minister of Foreign Affairs, who resigned recently, the vice prime minister, which allowed to save the ruling coalition and avoid new elections. S&P rating agency lowered the forecast of Portugal current rating to negative one due to the growing political uncertainty which could undermine the county’s return to the debt market.
Meanwhile the Bank of France increased the prospects of the economic growth in the second quarter up to 0.2% in comparison with 0.1% which was predicted before. Also the Bank’s report released on Monday showed the growth of business confidence in June. Manufacturing business confidence of France grew to 96 in June in comparison with 94 in May.
By MasterForex Company