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Forex News: USD, JPY Decline on Rising Risk Appetite

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Yesterday's trading provided a very clear trend. On one hand, the European currencies - such as the euro, pound and franc - all strengthened. On the other hand, the dollar and yen, which are considered to be relatively safe investments, both weakened.

In addition, commodities such as crude oil rose and this can only mean one thing - optimism regarding the potential of global recovery is increasing. This sentiment came following several positive economic publications from the world's leading economies, and following a consistent advancing of global equities.

As long as the major economies, such as the US, Japan, Germany and Britain, deliver positive data, this trend may continue. However, once there is a doubt regarding the recovery of a leading economy, this trend might be promptly corrected.

Here are today's leading publications:

08:30 GMT, GBP - Britain Construction Purchasing Managers' Index ( PMI ) - This is a survey of purchasing managers who are asked to rate their level of business conditions. If the end result will reach above 60 points, the pound ( GBP ) might be boosted.

12:30 GMT, USD - US Personal Spending - This report measures the change in the value of expenditures by American consumers. Consumer spending accounts for a majority of overall economic activity, and thus this indicator tends to have a large impact on the market. If the end result will beat expectations for 0.1% increase, the dollar ( USD ) may drop further.

14:00 GMT, USD - US Pending Home Sales - This report measures the change in the number of homes under contract to be sold but still awaiting the closing transaction. Following a 30% decrease in June, a positive figure is likely to further indicate that the US economy is recovering, and as a result to boost the euro and the pound from an increase in risk appetite.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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