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01:30 Australia Changing the number of employed May 15.5 0.9 38.9
01:30 Australia Unemployment rate May 4.9% 5.1% 5.1%
05:00 Japan Leading Economic Index April 96.4 95.2 95.1
05:00 Japan Coincident Index April 96.4 96.5 96.5
The dollar was within 0.2 percent of a one-week low against the euro on bets Federal Reserve Chairman Ben S. Bernanke today may signal more stimulus is needed to spur a recovery in the world’s largest economy. Bernanke will testify to U.S. lawmakers in Washington today. He said in April the Fed may provide more easing should unemployment fail to make “sufficient progress towards its longer-run normal level.” The policy-setting Federal Open Market Committee meets June 19-20 to consider whether to add to its record easing after the economy created the fewest jobs in a year in May. Two regional Fed bank presidents who vote on policy this year, San Francisco’s John Williams and Atlanta’s Dennis Lockhart, said yesterday the central bank should be prepared to take action if the economy deteriorates further.
The yen declined versus most of its 16 major counterparts as Asian stocks extended a global rally, damping demand for lower-yielding currencies.
The euro remained higher after its biggest gain in three months against the yen yesterday amid speculation the European Central Bank will act to rein in the region’s debt crisis after leaving its benchmark interest rate at a record low. The ECB’s decision to leave its key rate at 1 percent yesterday was predicted by 49 of 60 economists surveyed by Bloomberg News. Ten forecast a quarter-point reduction, and one a half-point cut. “We monitor all developments closely and we stand ready to act,” ECB President Mario Draghi told reporters in Frankfurt following the decision. Downside risks to the economic outlook have increased and “a few” of the ECB’s Governing Council members called for a rate cut at the meeting, he said.
The so-called Aussie strengthened against 15 of its 16 major peers after the country’s statistics office reported payrolls increased by 38,900 after a revised 7,000 gain in April. That compared with the median estimate for no change in employment in a Bloomberg survey.
EUR/USD: during the Asian session the pair receded from a yesterday's high.
GBP/USD: during the Asian session the pair decreased after yesterday's growth.
USD/JPY: during the Asian session the pair rose, updated a week’s high.
A full morning for the UK, which includes the Bank of England's policy decision UK data starts at 0700GMT, witt the release of the Halifax Houspe Price data. At 0830GMT, the May Markit/CIPS service sector index is released. At 1100GMT, the BOE Monthly Policy Decision is due. The European data calendar kicks off at 1130GMT, German Chancellor Angela Merkel, British Prime Minister David Cameron, Norwegian Prime Minister Jens Stoltenberg, attend a public discussion with students, in Berlin. There is no confirmation yet as to whether or not there will be a press conference.
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