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The euro rose against the dollar significantly, updating the maximum in May, due to the publication of weak data on the US labor market and news on Greece. As previously reported, during a telephone conversation the head of the EU Jean-Claude Juncker, Prime Minister of Greece, Tsipras made progress in talks on Greek debt on Wednesday. During the talks, the leaders of Greece and the European Commission discussed the need for a fair, financially sustainable and effective reform of the pension system in Greece, as well as touched upon the problems of the labor market and the reform of the wage system. In a joint statement, and Tsipras Juncker also said that the "constructive talks" should be continued.
As for US data, Automatic Data Processing reported that private sector employment grew weaker in April than in March, while the growth was less than expected. According to a report last month, the number of employees increased by 169 thousand. People from a revised downward indicator for March at 175 thousand. (Originally reported growth of 189 thousand.). According to forecasts of the value of this indicator it was to reach 200 thousand.
Investors also await the publication of Friday's report on employment in the US non-farm payrolls in April. The recent series of disappointing US data undermined optimism about the economic recovery, prompting investors to reconsider the initial expectations rise in interest rates by the Federal Reserve at the end of the year instead of the middle.
The Canadian dollar has appreciated significantly against the US dollar, the most refreshing April 29, but then lost most of the earnings position. The Canadian currency was supported by rising oil prices and positive national statistics, but the anticipation of the publication of data on the US labor market and Canadian market participants are forced to be cautious. Recall the results of research presented by the Association of Purchasing Managers Canada and the Richard Ivey School of Business, have shown that the results of April PMI managers has grown significantly and moved above the neutral point. According to the report, the April business activity index rose to 58.2 compared with 47.9 in March. In addition, more detailed information is shown: the employment sub-index in April rose to 50.3 from 45.1, inventories sub-index fell to 53.3 from 57.9, a sub-price index fell to 57.8 from 59, 5, and the sub-index rose to 46.2 deliveries from 45.0. Meanwhile, it became known that the unadjusted index of business activity of purchasing managers in April amounted to 55.7 points against 56.0 points in March.
The British pound rose moderately against the US dollar, due to the publication of data on activity in the services sector, as well as the expectations of national elections in the UK. It is learned that the British service sector rose the most in eight months in April, led by a marked growth in new business, which prompted the company to continue a steady pace of jobs creation. The seasonally adjusted index of the British purchasing managers in the services sector from Markit / CIPS rose to 59.5 from 58.9 in March. Economists had expected a result of 58.5. PMI reading above 50 indicates expansion in the sector. The last reading was the highest since August last year, the UK service sector has now expanded 28 months in a row, which is the longest sequence of growth in seven years. "Fears of recession against the background of the election were scattered, because the rise in the activities of the services sector helped offset the sharp slowdown in manufacturing and construction. Research PMI suggest that the economy is showing robust growth rates in the second quarter will begin expanding at a rate of 0 , 8%, "- said Chris Williamson, chief economist at Markit ,.
Meanwhile, traders were silenced in the run-up to elections in Britain. Elections will be held tomorrow, and as recent social polls, the election race has become one of the most severe since the 1970's. According to the latest opinion polls, neither the Conservatives, led by Prime Minister David Cameron nor the opposition Labour Party failed to take a leading position. Therefore, the "small" parties can become key players vote, in which the British will choose the members of its parliament for the next five years. As expected, the Scottish nationalists take a good position in this election, so the vote can not only determine the future of Scotland, but the future of Great Britain in the European Union.
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