International NewsEURUSD
saw a positive increase opening near the session low of 1.2920 but
shooting up to the high of 1.3032 in afternoon trade helped by positive
Eurozone Retail Sales figures MoM read as 1.0%, a solid increase from
the previous -0.2% especially since economists had only expected a modest increase to 0.2%. The
US received a mixed bag of economic data, the key points being related
to employment. ADP Nonfarm Employment Change rose to 188K, a significant
improvement on the previous reading of 134K exceeding even the market
estimate of 160K. Continuing Jobless Claims and Initial Jobless Claims,
again, key indicators of employment levels, both fell significantly and
beyond market expectations, the latter from 348K to 343K. Markets are
closed in the US today for Independence Day. The
National Bank of Poland cut its interest rate yesterday from 2.75% to
2.5% the lowest on record, the bank did made it clear however that this
was the last of its campaign of monetary policy easing that began in
2012. Earlier this year the country’s GDP forecast was revised downward
to 0.5-1.7% from the March forecast of 0.6-2%. Portugal
dived deeper into the mire as 10 year bond yields shot up beyond the 7%
level generally considered to be unsustainable. This was in response to
fears that the conservatives, the Democratic and Social Center Party
which was led by Mr Portas until his resignation on Tuesday, could
withdraw its support for the government. Canada's
trade deficit narrowed unexpectedly in May with imports falling twice
as fast as exports, highlighting the challenges facing exporters from an
uncertain economy. Egypt's
markets which plunged when the first Tahrir protests began and stayed
closed for almost two months, has has risen almost 10 percent in the
last few days. It suggests that Egyptian (and some foreign) investors
welcome the return of the military-run status quo. | 
