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The euro exchange rate fell sharply against the dollar, which has been associated with Draghi comments. Trichet said that the authorities are ready to act again, after the Central Bank lowered the rate to 0.50%.
Draghi's comments, made in Rome include recommendations to the government, support tax cuts and a more equitable distribution of wealth in the euro area in order to increase economic activity. However, fiscal consolidation is still mandatory, especially for countries with the highest levels of debt.
We also add that in early trading little impact on the couple gave a report on retail sales, which showed that in March retail sales in the eurozone fell by 2.4% per year versus -1.7% previously and forecast of -2.2%. Note that a monthly basis, this figure fell to 0.1% from 0.2% in February, which was in line with expectations.
No less important was the report that showed that in April, the German services PMI fell to 49.6 against 50.9 the previous month and the forecast of 49.2, Italian PMI exceeded the forecast of 45.8 and up from 45.5 to 47.0; Spanish indicator fell from 45.3 to 44.4 (forecast 45.7 ). PMI Services eurozone rose to 47.0 from 46.4, exceeding the forecast of 46.6, while the composite PMI improved to 46.9 vs. 46.5.
The cost of the Canadian dollar was higher against the U.S. dollar after a report from the Ivey showed that the index of business activity fell markedly in the last month, beating forecasts with experts. According to the report, the seasonally adjusted value of the index fell in April to a level of 52.2, up from 61.6 in March. Note that according to estimates, the figure was reduced to the level of 58.3. Recall that, as the value of this index is above 50, indicating expansion in consumer activity. The report also stated that the employment sub-index in April was 55.1, indicating that employment was higher than in the previous month. Meanwhile, it became known that the sub-index stocks amounted to 52.7, a sub-price index stood at 58.7, while the sub-index reached 49.5 deliveries. Note that not seasonally adjusted business activity index was 50.9 in April
The Australian dollar fell against the U.S. dollar after the data, which were released today by the Australian Bureau of Statistics showed that retail sales in Australia fell in the month of March, showing at the same time the first decline in three months, which was mainly due to the decline in consumer spending on household goods as well as clothing, shoes, jewelry, and accessories. According to the report, the seasonally adjusted retail sales fell by 0.4 percent, after rising 1.3 percent in each of the past two months. Economists had expected a rise of 0.1 percent. Note that, according to most experts predicted average sales should grow by 0.2 percent.
The data also showed that the retail sale of household goods in March decreased by 1.5 percent, while spending on clothing, footwear and personal accessories fell 4.2 percent.
Sales at department stores fell 0.1 percent, while growth in food sales slowed to 0.8 percent.
Meanwhile, the Australian Financial Review today reported that the Treasury of Australia lowered the GDP growth forecast for the current and next fiscal year. As it became known, GDP growth forecast lowered by 0.25% to 2.75% in the current fiscal year, which ends June 30, and in the 2013-2014 fiscal year.
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