Forex: Monday’s review

Yesterday the euro traded in a narrow range. The pressure on the single currency has had a regional statistics, under which the euro zone investor confidence index up in July Sentix -29.6 points. In addition, the single currency remained under pressure due to rising yields on the debt of Spain and Italy. The main event of today's session was a meeting of the Eurogroup, which dealt primarily with the outcome of EU summit. But as it became known, the meeting was not very inspired by market participants and the major currencies almost did not react to past events.

Euro retreated from the Asian session low against the dollar on the comments of representatives of the Eurogroup in respect of the debt crisis. According to the European Commission, following the establishment of a pan-European supervisory control over the banking activities, to directly recapitalize the banks by means of the eurozone ESM will not require sovereign guarantees. Support a single currency was the outcome of the German auction. The German Government has placed semi-annual treasury bills amounting to 3.29 billion euros, while intended to attract four billion euros.

The pound was trading at the beginning of the session kept in relation to the dollar, but after the meeting of the Eurogroup, has shown rapid growth, updating the intraday high and is now trading in the data values.

The yen also shows a small but steady growth, updating the current high.

The Australian dollar fell after reports from the Xinhua News Agency, which reported that Chinese Premier Wen Jiabao said the government's intention to conduct a fine job in response to the risks associated with falling economic growth in the country. Comments appear once the largest trading partner of Australia announced a second-rate cut last month. In China, in June 2012. inflation was 2.2%, according to a report from the National Bureau of Statistics of China. This was the lowest in the last 2.5 years. Producer price index fell by 2.1% compared to the same period last year. Reduced PPI index is four months in a row and shows a decrease in demand for industrial goods.