Euro ready for growth?
The euro suffered the least losses versus the US dollar on wide-scale selling of the Canadian, Australian and New Zeeland counterparts as World Bank lowered 2009 economic growth forecast. At the end of the Asian session Tuesday Aussie/US dollar declined more than 300 basis points from Friday's high due to stock indexex in the US and Asia, falling prices on non-ferrous and precious metals as well. On this back the European single currency showed extended steadiness against the greenback, even not touching the Monday's low at the level at 1.3826, and quickly rebounded above the level at 1.3940 as soon as first sings of growth in futures and stock stock markets.
German Financial Ministry announced in its monthly report that leading index pointed at possible stabilisation of activity in industrial sector within a year. New orders growth, especially semi-manufactured goods, pointed out that companies expanded manufacture plans. German business confidence continue growing, rising from 84.3 in May at 85.9 in June. German purchasing Manager Index (PMI) Manufacturing in June rose to 40.5 against 39.6 in May, at the same time PMI Services fell from previous month's 45.2 to 44.3.
UK Mortgage Credit in May slowed down three straight months to the 8-year low. The British Bank Association reported it. Nevertheless there is probability that forecast would be revised to upwards, so the number of Loans for House Purchase grew two months in a row to the 13-month high. Seasonally-adjusted mortgage credit in May rose totally by 2.3 bln British pound. This growth was the smallest since March of 2001. In April nett mortgage credit rose by 2.5 bln pound. As compared to the same period of the previous year the credit edged up by 4.0 bil pound.
