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Value of the pound significantly higher against the dollar, helped by a report on the index of the PMI services sector. As the results of recent studies that have been presented Markit Economics and BME, following last month active in the UK service sector has grown considerably , registering with the fastest pace of expansion in more than six and a half years , helped by an increase in new orders.
According to the report , the seasonally adjusted index of purchasing managers in the services sector rose in August to a level of 60.5 from 60.2 in July. Economists expected the index to decline to 59.8 . The index remains above the neutral mark of 50 , and points to the greatest improvement in business activity in December 2006 .
Add that led the growth of the overall index stood increase in the number of new orders received by the British services sector , which rose at the fastest pace in more than 16 years, due to the ongoing strengthening market confidence and improve marketing.
In addition, it was reported that input price inflation declined in August, but at the same time showing the slowest pace since May. At the same time, the prices for the products recorded a slight increase . The study showed that the British service providers still believe that the activity will continue to grow over the next year.
The euro rose against the dollar despite the fact that the previously weak retail sales data from the blocked part of the positive GDP report . According to the report , in the second -quarter gross domestic product grew by 0.3 % , thus confirming the predictions of experts and the previous estimate . Meanwhile , we add that the decline in the first quarter was revised downward to 0.2 % from 0.3 %. On an annualized basis , GDP fell by 0.5 percent, which was slightly lower than originally reported - at 0.7 per cent reduction.
Meanwhile , it was revealed in July retail sales rose by 0.1 % compared to the previous month. Many experts believed that the value of this index will rise by 0.5 % , after falling 0.7 % in June , which was revised upwards from -0.5 %. Sales of food, beverages and tobacco increased by 1% during July , while retail trade in non-food sector fell by 0.4 %. On an annual basis, retail sales fell in July by 1.3 %. It was little more than a drop of 1.1% ( revised from -0.9 %) , which was reported in June. We add that the projected sales had fallen by 0.3 %.
The Australian dollar has appreciated significantly against its U.S. counterpart , responding thus to the GDP report . According to the latest data, which were published today the Australian Bureau of Statistics , at the end of the second quarter of Australia's economy grew by confirming with the estimates of experts.
As it became known, in quarterly terms of Australia 's economic growth in the second quarter was 0.6 percent, which is fully in line with the experts, and followed the same growth in the last two quarters .
Meanwhile, it became known that the annualized growth of 2.6 %. We add that, according to the average forecast of economists was to increase of 2.5 %, which would equal the growth that was recorded in the first quarter.
Note that today's numbers and other previously submitted reports support the view of the Reserve Bank of Australia in respect of the fact that the economy is growing below its trend, and the arguments of the opposition that the decline in interest rates was reflected in weak economic growth. But the modest difference in growth rates between the first and second quarters, and more substantial than expected , the contribution of household expenses , can suggest that the economy is strengthening.
The Canadian dollar rose slightly against the U.S. dollar after the Bank of Canada has upheld the key interest rate for the twenty-fifth time in a row .
The Bank of Canada left its key interest rate unchanged at 1.00 %. The central bank said that " considerable monetary stimulus , which is now seen to remain fit." The Bank of Canada reiterated that total and core inflation are expected to remain low-key and gradually return to a level of 2%.
Earlier, the Canadian dollar has ignored data showing an increase in the trade deficit in Canada in July. The trade deficit of Canada in July was 931 million Canadian dollars ( 884.14 million U.S. dollars ) , well above the forecast of 200 million Canadian dollars, economists said Royal Bank of Canada.
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