European session: The yen fell against the dollar

Data

00:00 China Bank holiday

01:00 China Non-Manufacturing PMI September 53.9 55.4

06:00 Germany Bank holiday

07:00 United Kingdom Halifax house price index September +0.4% +0.6% +0.3%

07:00 United Kingdom Halifax house price index 3m Y/Y September +5.4% +6.2%

07:48 France Services PMI (Finally) September 50.7 50.7 50.5

07:53 Germany Services PMI (Finally) September 54.4 54.4 53.7

07:58 Eurozone Services PMI (Finally) September 52.1 52.1 52.2

08:30 United Kingdom Purchasing Manager Index Services September 60.5 60.4 60.3

09:00 Eurozone Retail Sales (YoY) August -0.7% Revised From -1.3% -1.5% -0.3%

09:00 Eurozone Retail Sales (MoM) August +0.5% Revised From +0.1% +0.3% +0.7%

The euro rose to eight-month high against the dollar , where it continues to trade in a consolidation mode . Note that this dynamics associated with discussions on the extension of stopping the U.S. government. This fact will lead to slower economic growth in the country and can serve as a signal for a possible expansion of quantitative easing program , which will undoubtedly have a negative impact on the U.S. currency . Yesterday, after a meeting of congressional leaders with President Barack Obama, House Speaker John Boehner said that the progress in the negotiations to address the financial impasse has been reached . U.S. lawmakers also need to negotiate with the White House to raise the debt limit . Otherwise, the 17 October, the U.S. will default .

Earlier in the European session the pair hardly reacted to the positive data on the services PMI eurozone and the strong performance in retail sales in the region.

Add that to the course of trade is also affected by expectations of American publishing data on the number of applications for unemployment benefits . It is expected that this indicator will rise to the level of 315 thousand to 305 thousand additional impact on the dollar can have today's publication of data on the manufacturing index from the Institute for Supply Management (ISM). According to the median forecast of economists , the index for September is likely to fall to 57 from 58.6 a month earlier. Recall that the value is above the 50 level punknogo points to economic growth.

The pound fell against the dollar , dropping at the same session to a minimum , due to the expectations of the publication of data on the U.S..

Note that a significant , though not long support the pound had data on activity in the service sector. As it became known , the activity in a key sector of the British economy - the service sector - in September remained near record highs , although it declined to 60.3 from 60.5 in August. Economists expected a decline to 60.4 . Readings above 50.0 indicates expanding activity , while below 50 - the reduction .

The data also showed that the index of activity in all sectors of the economy grew in the 3rd quarter to a 15- year high , which gives reason to expect GDP growth for the quarter of 1.2% , which would be the highest since the start of the global financial crisis.

" Services reported continued growth in September - said Markit chief economist Chris Williamson . - There are encouraging signs that in the coming months will show strong growth . In September was marked by record high increase in new orders. Business confidence about the prospects increased . " . After GDP growth in the first two quarters , we should expect increases in the 3rd quarter .

EUR / USD: during the European session, the pair rose to $ 1.3615

GBP / USD: during the European session, the pair fell to $ 1.6181

USD / JPY: during the European session, the pair rose to Y97.88, then fell to Y97.65

At 12:30 GMT the U.S. will report on changes in initial claims for unemployment insurance . At 14:00 GMT the U.S. will release the ISM composite index of non-manufacturing activity in September , and will report on changes in the volume of industrial orders in August.