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The euro rose against the dollar after weak data on the Richmond Fed manufacturing activity. Report of the Federal Reserve Bank of Richmond (Richmond Fed) has shown that the producers of the central Atlantic region of the U.S. this month reported a decline in activity. The in Richmond Fed index of current business conditions in the manufacturing sector in July fell to -11 from 7 in June, and the June value was revised downward. The June was the first positive value since March. The index values above zero indicate an increase in activity. Richmond Fed sub-indexes in July showed a massive decline. The new orders index in July fell to -15 from 9 in June. The shipments index fell to -15 from 11. As for services, the activity is also decreased. Income index in the services sector fell to -6 to 12.
At the same time, the Bloomberg survey of economists showed that the expected reduction of the quantitative easing program to $ 65 billion in September. The survey was conducted July 18-22. Half of the respondents expect the onset of decline of the "quantitative easing" in September. That's more than 44% in the June survey. However, despite expectations, the yield on 10-year Treasury bonds continued to decline last week with a high of nearly two years after the announcement of Federal Reserve Chairman Ben Bernanke that the reduction of redemption of bonds will not be a tightening of monetary policy. 15% expect to reduce the start of the program of "quantitative easing" the Fed meeting on 29-30 October. Half of waiting until the "quantitative easing" in the second quarter of 2014 None of the respondents expect to reduce redemption of bonds as a result of the Fed meeting on July 30-31. According to the median estimate, the Fed will buy bonds in the market for another 1.32 trillion. dollars to complete the program of "quantitative easing." 51% percent of the respondents believe that monetary policy is "too soft", 10% - that it is "too hard".
The pound before fell against the dollar, which was due by the publication of the UK. In the British Bankers Association reported that by the end of last month the number of approved applications for mortgage loans increased moderately, reaching with the highest value since the beginning of 2012, but was less than the estimates of experts. According to the report, in June of this indicator has risen to the level of 37.278 million, compared to 36.290 million in the previous month, which was revised upward from 36.1 thousand added that many economists expect growth to 38.5 thousand .
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