On the first day of the trading week we evidenced the increased market participants’ willingness to take risks. This was a result of the published information that the American creditor company CIT Group Inc. would probably avoid bankruptcy. And the German monthly and yearly producer price index, released on Monday, turned out to be lower than the forecast and the previous period, which did not render any pressure on the euro. The euro currency demonstrated its maximums due to the published positive fundamental indicators in the US. As a result, the EUR/USD pair established its 6-week maximum in the range of $1.4248.

The Great Britain monthly and yearly Rightmove House Prices index, published on Sunday, demonstrated a considerable increase compared to the previous period. This factor supported the British pound. The GBP/USD pair demonstrated a sharp growth to the level of $1,6500.

On Monday the oil prices grew and reached the $64.90 level per barrel. Against the background of the decreased US dollar, the gold and silver prices grew as well.

 

 

On Tuesday due to the comments regarding the statement of the president of the US Central Bank, Ben Bernanke, the American dollar strengthened against the major currencies. Many of the American companies demonstrated positive reports, regardless of the experts’ forecasts. At the same time the suspicions regarding the CIT Group Inc. inevitable bankruptcy were announced again.  The EUR/USD pair showed minimums at the level of $1.4183, but then reached maximums at the $1.4277 mark.

It was published on Tuesday, that the Central Bank of Canada left the principal rate unchanged at the level of 0,25%.

On Wednesday the dynamics of the major currencies changed its direction again. The American dollar strengthened as a shelter-currency during the first part of the day. But then the interest to the high-risk currencies strengthened, and the US dollar demonstrated a decrease.  The EUR/USD pair traded in the range of $1,4160-$1,4256. And the sterling reacted with a decrease after the released negative information regarding the additional financing, which would be necessary for the Barclays Plc and Royal Bank of Scotland Group Plc. Consequently the GBP/USD pair established a trading day minimum around $1.6310. As an American dollar the yen turned out to be supported against the major currencies due to the leading fund indices drop.

According to the published news, the US oil inventories demonstrated an unexpected drop. And the oil rate stabilized around the $65 level per barrel.

Positive corporate reports of EBay Inc. and Ford Motor Co. were published on Thursday, which provoked the growth of the high-yielding currencies and decrease of the American dollar. The US fundamental news also supported the US dollar competitors. Particularly, the existing home sales indicator for June demonstrated an unexpected growth, and the initial jobless claims for the last week turned out to be lower, compared to the forecast. After the release of the negative corporate reports of the ”Microsoft Corp.”, ”American Express Co.” and ”Amazon.com Inc.” the situation changed and the dynamics of the euro currencies demonstrated a sharp decrease.   The EUR/USD rate demonstrated its maximums at the level of $1.4290, and minimums at the level of $1.4120.

The UK retail sales report has been published on Thursday for June, which happened to be considerably better, than the forecast. Consequently, the sterling received a temporary support.  As a result the GBP/USD pair reached maximums at the $1.6580 mark.

On Friday the German business confidence IFO index has been published, which demonstrate an unexpected increase. The euro currencies received temporary support from the other fundamental news as well. The EUR/USD pair closed the trading week at the level of $1.4230.

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