Forex: Monday’s review
Yesterday the euro rose the most in more than a year against the dollar after French and German leaders pledged to deliver a plan to support banks and repeated a commitment to keep Greece in the single-currency bloc. The shared currency also advanced as Belgium agreed to buy the local consumer-lending unit of Dexia SA, ending a 15-year cross-border experiment with France after the European debt crisis deepened. The euro stayed higher even as a report showed European investor confidence fell to the lowest in more than two years.
The dollar dropped against all of its major counterparts as global stocks advanced, sapping demand for the greenback as a haven.
The Swiss franc strengthened against the euro, the day before the Swiss National Bank imposed a ceiling of 1.20 versus the common currency and resumed purchases of foreign currencies to curb the franc’s advance.
EUR/USD: yesterday the pair is grown
GBP/USD: yesterday the pair is grown and closed the day on week's high
USD/JPY: yesterday the pair decreased
On Tuesday UK data starts at 0830GMT with Industrial Production/Manufacturing Output data from the UK.
No European data expected Tuesday, but, at 0730GMT this morning, ECB President Jean-Claude Trichet speaks before the European
Parliament's Economic and Monetary Affairs Committee, in Brussels. UK at 1400GMT, the NIESR GDP estimate is due. In its August Inflation
Report the Bank of England's implied forecast was for 0.75% growth in Q3, with the Bank forecasting a rebound after Q2 growth was
depressed by one-off factors