European session: the euro rose sharply against the U.S. currency

Data

1:35 Japan index of business activity in the manufacturing sector in July 51.5 51.9 50.8

1:45 China Manufacturing PMI HSBC (preliminary data) July 50.7 51.2 52.0

6:58 France PMI in the manufacturing sector (preliminary data) July 48.2 48.5 47.6

6:58 France PMI services sector (preliminary data) July 48.2 48.9 50.4

7:28 Germany PMI manufacturing sector (preliminary data) July 52.0 52.2 52.9

7:28 Germany PMI services sector (preliminary data) July 54.6 54.7 56.6

7:58 Eurozone business activity in the manufacturing sector (preliminary data) July 51.8 52.0 51.9

7:58 Eurozone business activity in the services sector (preliminary data) July 52.8 52.7 54.4

08:30 UK Retail Sales m / m in June -0.5% +0.2% +0.1%

08:30 UK Retail Sales y / y in June +3.9% +3.9% +3.6%

The euro exchange rate against the dollar has risen considerably, departing from the 8-month low, which was associated with the release of positive data on the index of business activity in the manufacturing sector in Germany and the euro area in July. According to statistics published by Markit Economics index showing business optimism in the manufacturing sector of the economy of Germany, grew to around 52.9, while analysts had expected growth to the level of 52.2.

As for the euro area, there is a composite Purchasing Managers' Index, which covers the manufacturing sector and the service sector, rose to 54.0 in July from 52.8 points, the highest level since April. Recall that a value above 50 indicates expansion. Latest update also proved significantly higher than the average forecasts of experts. However, while business activity in the service sector of the eurozone expanded at the fastest pace since May 2011 - PMI index rose to 54.4 from 52.8 - firms continue to reduce prices, which is fixed for the past 31 consecutive months. We add that the sub-index of prices for products in this sector fell to 48.3, despite high raw material costs. With regard to the sub-index of employment in the services sector, it has not changed in July (50.9).

Meanwhile, data showed that manufacturing index rose to 51.9 from 51.8 mark in June, which was slightly lower than expected (52.0). Meanwhile, the production index rose to 53.0 from 52.8.

Pound fell sharply against the U.S. currency came under pressure on weak retail sales report. British retail sales in the second quarter was the highest in the last 10 years, but has not changed in the last month. This was stated in the report submitted to the Office for National Statistics. According to data for the period from April to June, retail sales rose by 1.6 percent compared with the previous three months, recording the largest increase since the beginning of 2004. Nevertheless, by the end of June, sales grew by only 0.1 percent compared to May. In annual terms, sales rose by 3.6 percent. Experts had expected a monthly basis, growth will be 0.2 percent, and year - 3.9 percent.

In Statistical Office reported that sales in the second quarter were increased stepwise by 1.0 percent in April, which more than offset the fall in May. Comparing the second quarter from the same period last year, sales rose 4.5 percent, showing the biggest increase since the end of 2004. In today's report also stated that the annual 2 percent increase in prices for textiles, clothing and footwear was unusual, given that retailers cut prices during the month. The last time the price of clothing rose in June 2007.

The yen remained under pressure after the publication of the report of the weak export Japan. Country's exports fell by 2.2% compared with the same period a year earlier. The indicator does not live up to expectations of economists, who had forecast an increase of 1%. In May index lost 2.7%, and this was the first drop in more than a year. Imports increased by 8.4% compared to the same period last year, with increased buying power and a relatively weak yen after being dropped by 3.6% in May.

EUR / USD: during the European session, the pair rose to $ 1.3485

GBP / USD: during the European session, the pair fell to $ 1.7005

USD / JPY: during the European session, the pair rose to Y101.66

At 12:30 GMT the U.S. will report on initial jobless claims for unemployment, 13:45 GMT to submit an index of business activity in the manufacturing sector in July, and at 14:00 GMT declares sales in the primary market in June. At 23:30 GMT Japan's consumer price index will be released in June and Tokyo CPI for July