Forex: Wednesday’s review
Yesterday the euro rose to three-week highs against the dollar and yen after European industrial production unexpectedly rose in August, and the European Union and International Monetary Fund officials indicated Greece will get an 8 billion-euro ($11 billion) loan next month. Later European Commission President Jose Barroso called for a “coordinated approach” to recapitalize the region’s banks. The 17-nation currency extended gains after policy makers in Slovakia, the only nation yet to approve a retooled bailout fund, reached an agreement on another vote to ratify the plan.
New Zealand’s dollar rose the most in two months against the dollar as stocks and commodities advanced, buoying higher- yielding currencies.
EUR/USD: yesterday the pair is grown and showed new three-week high.
GBP/USD: yesterday the pair is grown.
USD/JPY: yesterday the pair is grown and showed new three-week high Y77.50.
On Thursday UK trade data is set for release at 0830GMT. While analysts' median forecast is for little change in the trade balances from July there are doubts over what impact the euro area's sovereign debt crisis will have on trade activity. US data at 1230GMT with jobless claims and the international trade balance. Initial jobless claims are expected to increase by 9,000 claims to 410,000 in the October 8 week. At 1830GMT, Minneapolis Fed President Narayana Kocherlakota is due to deliver a speech to Sidney (Montana) Area Business Leaders.