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01.08.2014 18:20

American focus: the pound has fallen significantly against the U.S. currency

The dollar declined significantly against the euro, which was associated with the release of a report on the U.S. labor market, which has not met expectations. As it became known, unemployment unexpectedly rose in July - up 6.2% from June's 6.1%, which was the lowest value of the index since June 2008, according to the Ministry of Labor of the country. Analysts predicted changes. The number of jobs in the U.S. economy increased in July by 209 thousand after increasing by a revised 298 thousand a month earlier. Experts interviewed expected the figure to 230 thousand, previous assessment of the June rise equaled 288 thousand Edit Data for May and June added 15 thousand to employment growth. Improvement in the U.S. labor market this year, is expected to contribute to the sustainable growth of consumer spending, which, in turn, will support the creation of new jobs and ensure further economic recovery.

Dollar was little support data potrebdoveriyu. As shown by the final results of studies presented Thomson-Reuters and the Michigan Institute in July, American consumers feel more pessimistic about the economy than was recorded in the last month. According to the data, in July the final index of consumer sentiment fell to 81.8 compared with the final reading for June at 82.5 and the initial estimate for July at around 81.3. It is worth noting that, according to the average estimates of experts, the index was down compared with the June value to the level of 81.5.

The yen has strengthened significantly against the U.S. dollar, after data on employment in the United States reported an increase in the number of jobs in the labor market at a moderate pace. However, they fell short of market expectations, while the unemployment rate rose. The July employment report in the U.S. has forced investors to transfer funds in U.S. Treasury bonds, especially with short maturities, triggering a drop in bond yields. Its reduction, in turn, exert downward pressure on the dollar against other currencies. U.S. bond yields decline makes the dollar less attractive to investors, as it reduces the gain on assets denominated in that currency. It is worth noting that improving data supported the prevailing market view that the U.S. economy is close to the Fed's mandate. In a statement this week, the Fed acknowledged the improvement of data, indicating that it may be approaching the first increase in interest rates since the financial crisis.

The British pound fell sharply against the U.S. dollar, as data on manufacturing activity disappointed investors. In the UK manufacturing activity grew at the slowest pace in a year in July, while a slowdown in new orders and output end of the first half of the "significant growth spurt," said Friday Markit Economics. Industrial activity index fell to 55.4 from a revised level of 57.2 in June. Economists had forecast a reading of 57.2 in July, from 57.5 previously voiced in June. The new orders index fell to 57.8 from 60.6 and the output index also fell. Although the report refers to some loss of momentum in manufacturing, the sensor is higher than the average in the 51.5 series, and showed expansion of 17 consecutive months. Other indicators show continued strength - a report from the Confederation of British Industry showed that factory orders are at their highest level since 1995. "Despite the cooling in July, growth in production and new orders remain well above their long-term trends, maintaining a constant job creation," said Rob Dobson, economist at Markit in London. "Growth rates remain historically very strong, to help promote another robust economic growth in the third quarter."

01.08.2014 17:20

European stock close

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