Eurozone economy is growing the slowest pace since the end of the recession

Eurozone economy is growing the slowest pace since the end of the recession, as business and consumer confidence waned and stock prices fell, according to the measure of activity compiled by the Centre for Economic Policy Research (CEPR) and Bank of Italy. CEPR and Bank of Italy on Friday said that their indicator of economic activity fell Eurocoin to 0.03% from 0.22% in August, dropping the fourth consecutive month. It was the lowest level since August 2009.
Eurocoin indicator designed to assess the gross domestic product growth from quarter to quarter, with the exception of unstable components, such as seasonal fluctuations and short-term volatility.
"The decline mainly reflected trends in stock prices and growing pessimism on the results of surveys of consumers and businesses," - said the Bank of Italy and CEPR.

Euro / Pound. Comments dealers, Foreign Exchange Market

Euro / pound in European trading is under pressure. At the moment the couple kept in stg0.8680. As noted by one of the dealers, the level of stg0.8675 strike has now expiring option. Market participants believe that the end of the month associated with the payment of the EU the UK will take place during the fixing the ECB. However, the expected strong demand for euro / pound by the Bundesbank, as well as active selling the pound to the dollar model accounts. Interest in buying a pair of felt stg0.8670/60, and then to stg0.8650. The breakthrough of this level may open the way to move toward stg0.8640/30. The nearest resistance is a pair of runs on stg0.8740, and then at the 100-day moving average at stg0.8795. The current euro / pound stg0.8677.

Data on retail sales in Germany did not add optimism

The single European currency once again managed to find support near $ 1.3520, and against the background of the profit is adjusted higher. However, near the $ 1.3565 the bears became more active, and the publication of a weak report on retail sales in Germany has provoked a new wave of sales, resulting in the pair is trading now around $ 1.3535. Dealers say that while the bulls keep a stiff upper lip, but a break below $ 1.3520 threatens to turn into a more active falling euro / dollar, and they warn that such an event would entail the development of lower to $ 1.3500 and $ 1.3480, while below the last mark will have another series of pretty good stops. Ofer now appear in the $ 1.3550/60, further orders are placed on the Bears $ 1.3580, larger - on $ 1.3595/05 with stops above. Source: Forexpf.Ru

Asia Stock chose the red zone

During today's trading stock index Asia-Pacific region fell for the first four sessions and complete the quarter the most significant decline for almost 3 years, reported Bloomberg. Statistical data from the U.S. not calmed investors' fears concerning the threat of recession, world's largest economy.

Composite stock index MSCI Asia Pacific region fell by 0.5% - to 113.56 points. Since the beginning of the week indicator gained 1.7%. Japan's Nikkei 225 fell 0.5%, South Korea's Kospi - 1.2%, Hong Kong's Hang Seng - by 2.1%.

Stock quotes a Hong Kong company Li & Fung Ltd., A supplier of clothing and toys to retailers in the world, including Wal-Mart, have fallen by 5.1% due to fears of demand reduction.

Paper concern the world's leading automotive Japanese Toyota Motor Corp. fell 0.9%.

Samsung Electronics Co. reduced the capitalization of 1.9%.

Price of securities of the second-largest oil company Australian Woodside Petroleum Ltd. increased by 0.8% following the increase in oil prices.

Since the beginning of the month MSCI Asia Pacific has fallen off by 9.1%, bringing the decline this quarter, up 16% - a maximum of three months ended in December 2008, in the midst of a global crisis. In selected markets in the region is a quarterly decline of 11% to 21%.

The preliminary consumer price index / CPI / Italy in May, 0.1% m / m, 2.6% y / y

ROME, May 31. Inflation in Italy in May slowed down compared to the previous month, although it remained unchanged compared with the same period last year. At this point released Tuesday, preliminary data from a national statistics agency Istat.
According to the data, the consumer price index / CPI / in May rose by 0.1% compared to the previous month and 2.6% over the same period last year. In April the consumer price index rose by 0,5%.
Annual price increases in May coincided with an increase in April, when the consumer price index grew at the fastest pace since November 2008.
These data are roughly coincided with the forecast of economists surveyed by Dow Jones Newswires, according to which the index would grow by 0,2% compared to the previous month and 2.6% over the same period last year.
Harmonised index of consumer prices in Italy, which allows for more discounts offered for promotional purposes, and is a key indicator of inflation for the European Central Bank / ECB / in May rose by 0.2% compared to the previous month.
Annual core inflation, which ignores volatile energy prices and fresh food, in May was 1.8%, remained unchanged compared with April.
Without taking into account energy price inflation was 2.1% versus 2.0% in April.
In the spring of this year, the ECB would raise interest rate to 1.25%, seeking to prevent the growth of inflationary expectations.
Annual inflation in commodity prices in May was 3.0%, while prices of services rose by 2,3%.
Rising energy prices, which account for about 8% of the total price growth slowed in May. They rose 0.1% compared to the previous month and 9.8% compared with the same period last year. In April, prices jumped by 1.9% compared to the previous month and 10.7% compared with the same period last year.

EUR /CHF:The direction of EUR /CHF 1.2099 and indicates 1,2256 - UBS

Key technical signals the direction for the euro / Swiss franc at 1.2099 are 1.2256 and say to UBS. "Given that the euro / dollar has stabilized recently, the fall of the euro / franc also slowed, and the first time in a long time Frank was not able to reach new record highs on Monday" - economist says Reto Hyunervadel. "The illiquid market currency pairs with the Franks were unable to grow, " - he adds. As at 09.34 GMT, the euro / franc was trading at 1.2270.

The unemployment rate in the euro area in April of 9,9% against 9,9% in March

LONDON, May 31. The number of unemployed in the euro area has not changed in April from the previous month and remained at its lowest level in six years. This is evidenced by data released on Tuesday, the EU statistical agency Eurostat.
According to the data, the unemployment rate in the 17 eurozone countries in April was 9.9% in February and March. He remains the lowest since September 2009. A decline compared to April 2010, when unemployment reached 10.2%.
Despite the constant level of unemployment in the euro area, which corresponded to the forecast of economists surveyed by Dow Jones Newswires last week, there are still differences between stronger and weaker economies in the region.
Although unemployment has declined in the largest leading economies such as Germany, France and Italy, Ireland, Spain and Portugal, the situation has not improved. These countries, which remain among the highest unemployment rates in the region are at the heart of the crisis of sovereign debt. Data on unemployment in April for burdened with debt of Greece are not yet available.
Discrepancy appears to be increasing. According to recent data presented Tuesday in Germany, the unemployment rate in May was at its lowest level since the beginning of such statistics in 1999.
April Eurostat data indicate that the highest unemployment rate, 20.7%, was observed in Spain. The unemployment rate in Portugal was 12.6%. The indicator for Portugal has not changed from the previous month after a review in March upwards to 12,6% from 11,1%.

Unemployment in Italy in April of 8,1% against 8,3% in March - Istat

ROME, May 31. The unemployment rate in Italy in April fell to 8.1% versus 8.3% in March, and 8.6% in April 2010. This is indicated by data published on Tuesday the national statistics agency Istat.
However, the reported number of unemployed in April fell by 2,9% compared with March. The number of employees also decreased by 0.3%, reported Istat. All unemployment figures are inclusive of adjustment for seasonal variations.
They point out that the Italians were knocked out of the labor force, and not return to the search for work.
The employment rate in April fell to 56.9% versus 57.1% in March. Unemployment among people aged 15 to 64 years rose in April to 38,1% against 37,7% in March.
Unemployment among young people aged 15 to 24 years fell in April to 28,5% against 28,6% in March and 28.7 in April 2010, reported Istat.

The unemployment rate in Germany in May, with the correction of 7.0%

Nuremberg, May 31. The unemployment rate in Germany with the correction in May fell to record lows amid falling unemployment below 3 million, however, the number of unemployed has decreased with the correction of lower than expected. This is indicated by data released on Tuesday, the Federal Minister of Labour of Germany.
According to the data, the unemployment rate in Germany in May, with the correction has fallen to 7,0% against 7,1% in April, showed the lowest value since the beginning of keeping statistics in 1999.
The total number of unemployed without correction, which in May dropped by 118,000 to 2.960 million in May was the lowest value since 1992.
Nevertheless, taking into account the correction for seasonal variations, the number of unemployed fell by only 8000. According to some data, the number of unemployed in April fell by 33,000.
Economists surveyed by Dow Jones Newswires, expected to reduce the unemployment rate adjusted to 7,0% and reducing the number of unemployed at 30,000.
"The favorable development in the labor market continued in May, while the demand for labor is high, although it is a little weak," - said Frank-Juergen Weise, head of the Federal Department of Labor.

Consumer spending in France in April of -1.6% mom, 1.2% y / y

PARIS, May 31. Consumer spending in France in April unexpectedly fell. This is due to the fact that the fall in car sales and soft weather conditions have reduced energy consumption. These findings were presented Tuesday by the National Bureau of Statistics, Insee.
Expenditures on goods manufacturing fell in April by 1,6% compared to the previous month and were only 1.2% higher than in April 2010.
Economists surveyed by Dow Jones Newswires, expected fall in consumer spending at 0.4%.
In Insee cautioned that data on consumer spending on manufactured goods in April, can not be compared with the March data because of changes in nomenclature. In accordance with previous nomenclature, data for March showed consumer spending on manufactured goods by 0,4%.
Total expenditure on goods / this figure was released in April for the first time / fell by 1,8% compared with March, following a decrease of 1% in March compared with February, says in the Insee.
Total expenditure on goods in April 2011 were 0.1% lower than in April 2010.

USD/CAD:Dollar / Canada fell victim to the frustrations of bulls.Comments dealers

Trying to take advantage of weaker data on the current account of Canada's GDP and for the first quarter during trading on Monday did not bring significant results, and again met resistance in the C $ 0.9785, the dollar / Canada is once again turned lower. As a result, under the gun again supported in the C $ 0.9750, to assert that the bulls are not particularly sought, taking into account the frustration of the lack of progress in an upward movement in recent days and rising oil prices. Under pressure from the Swiss behalf couple continued to fall, and is now testing bids in the area C $ 0.9710/00. Dealers warn of the next series of stops around C $ 0.9690, a breakthrough which will pave the way towards the C $ 0.9645/40, and possibly even lower, although on the eve of the announcement of the decision of the Bank of Canada on interest rates, market participants are likely to prefer to refrain from aggressive actions. Ofer can be seen in the area C $ 0.9720/30, the larger located in an area C $ 0.9745/55.

The Australian dollar rose, receiving support from the development of the situation in Greece

SYDNEY, May 31. The Australian dollar has ignored published Tuesday weak economic data and increased slightly against the backdrop of positive developments in Greece.
The Australian dollar rose early in the session after reports of the newspaper Wall Street Journal, referring to well-informed sources, Germany's intentions to cease its efforts to support the postponement of the maturity of Greek bonds, to promote a new package of credit assistance to that country.
Export companies and the country's currency received additional support against the backdrop of the fall of the yen after the news agency Moody's Investors Service that it was studying the debt rating of Aa2 to the Government of Japan for possible downgrade.
As at 06.30 GMT on a pair of the Australian dollar / US dollar was trading at 1.0700 against 1.0680 on Monday evening. A pair of Australian dollar / Japanese yen was trading at 87.175 against 86.30.
The Australian currency rose to a session peak of 1.0756 U.S. dollars before fell to the background of technical factors and the output of alarm messages on the current account deficit a day before the report on GDP growth, which riveted attention.
According to data provided Tuesday by the Australian Bureau of Statistics, the export volume in 1 st quarter decreased by 8.7%, which would reduce economic growth of 2,4%. Reduction of the Australian economy in the 1 st quarter will be the worst in 20 years after the series of natural disasters had a negative impact on the export of such important sectors as coal mining.
"The economy is likely to be a significant step back in time the negative consequences caused by natural disasters" that have taken place in Australia earlier this year, "says Besa Santa, senior economist at St. George Bank.
Along with the alarming news in the housing sector, export data bit not coincide in time with the market as to when to expect the next interest rate increase of the Reserve Bank of Australia. Some economists, however, warn that you should not pay too much attention to go during the day data.
"It's all about - the lack of resources in the labor market and capital and the subsequent rise in inflationary pressures in 2012 and later. We continue to believe that in August and November interest rate will be raised by 25 basis points," - said Annette Beacher, the head of research on the Asia-Pacific TD Securities in Singapore.

Retail sales in Germany in April with the correction in real terms 0.6% m / m

FRANKFURT, May 31. Retail sales in Germany in April grew more slowly than expected, although faster than the previous month, when fears of an earthquake in Japan, and unrest in North Africa, significantly worsened consumer confidence. This is indicated by data released on Tuesday, the Federal Statistical Office Germany.
According to the data, retail sales adjusted in real terms in April rose 0.6% after falling in March at 2.7%.
Economists surveyed by Dow Jones Newswires, expected sales growth in April to 1.7%.
Retail sales adjusted in real terms increased by 3,6% compared with the same period last year.
Sales of food, beverages and tobacco products in supermarkets, large grocery stores and other markets in April rose by 4.3% over the same period the previous year and by 4,7% compared with March.
At the April sales impacted the Easter holidays, which this year took place later than in 2010, when the majority of purchases for the Easter holidays were made in March, noted in a statistical agency.

The euro/dollar rises on hopes about Greece

At the opening of the London session, after the three-day weekend, the euro / dollar reached a three-week high amid reports that Germany had become softer to the problems of Greece. Meanwhile, the Japanese yen actively sold after rating agency Moody's placed the rating of Japan to the list for a possible downward revision. Another significant fluctuation of the oscillation has a pair of New Zealand dollar / US dollar, which reached a fresh peak with the introduction of floating exchange rate, namely 0.8267 due to a sharp increase confidence in business circles. On Tuesday, the focus of the market focused on the consumer price index / CPI / May in the eurozone.

EUR/JPY:The euro / yen is trading at a higher-comment dealers

The euro / yen is trading at a higher after above 117.00 triggered stop-buy orders, said a senior dealer at a major Japanese bank. According to him, selling out the yen, coupled with the end of the month strong today as stock index MSCI going to withdraw the shares of a number of Japanese companies from among its members, and some Japanese companies offer mutual funds. Large-scale consolidation of shares in the Asian market is also supporting the risk appetite. But the premise of Moody's rating of Japan's "Aa2" to the list for a possible downward revision accelerate the sale of the yen, said this dealer. At the time of this writing, the euro was trading at 117.14 yen, after it rose to 117.28 against the three-week high reached before the minimum of 115.62. Dealer major Japanese bank believes that the couple later in the day will focus on the resistance of 118.00.

Swiss UBS consumption indicator in April fell to 1.58

ZURICH, May 31. Indicator of consumption in Switzerland has fallen slightly in April, but still indicates a slight increase, caused a significant increase in the number of registrations of new cars and grew up active in the retail trade. On this data indicated UBS, released on Tuesday.
Indicator in April fell by 0.10 points to 1.58 the previous month, although it was still significantly above its long-term average 1,5.
Low interest rates, a growing job market and low import prices due to the entrenched the Swiss franc were the main engines of growth in domestic consumption, said a UBS.
The largest Swiss bank still are optimistic about the economy as a whole. Bank economists expect the inflation-adjusted consumer spending this year will grow by 1,6%.

USD/CAD:A pair of U.S. dollar / Canadian dollar could soon fall to 0.9638. Dealer Comments

U.S. dollar on Tuesday fell to its lowest level in seven days against the Canadian dollar against the background of the desire of investors to take risks. Technical charts now indicate the possibility of further U.S. dollar falling in the near future to 0.9638 Canadian dollars.

A pair of U.S. dollar / Canadian dollar fell in Asian session on Tuesday to 0.9721 against the previous day's closing level of 0.9769 against the backdrop of improved relations investors to risk after release in the Wall Street Journal article talking about Germany's intentions to cease its efforts to support for postponing the maturity of Greek bonds to promote a new package of credit assistance to that country.

Within weeks, Germany has insisted on the fact that private investors Greek bonds partly to share the burden of the new aid package. Concessions made now, Berlin, consisting in Greece to provide more money even without the burden-sharing bondholders in the near future, would help Europe overcome the indifference to the financial needs of Greece before her money runs out in mid-July.

As at 05.24 GMT on the pair dollar / Canadian dollar was trading at 0.9725.

From a technical standpoint, short-term prospects for the pair U.S. dollar / Canadian dollar becoming more negative after a couple has broken down on Tuesday support 0.9740, which is the base pairs of consolidation over the past five days.

Daily slow stochastics show a decline in the overbought level, speaking in favor of the creation in the short term impact on the top of the maximum 0.9816.

A pair of U.S. dollar / Canadian dollar could soon fall to 0.9638, a level of reaction a minimum of 20 May.

Further decline in the pair could target it to 0.9509, the level of reaction low on May 11.

Nevertheless, the negative prospects for the pair U.S. dollar / Canadian dollar will be reduced to zero, if on the basis of the global session, the pair closes above 0.9816.

SINGAPORE, May 31. / Dow Jones /. U.S. dollar on Tuesday fell to its lowest level in seven days against the Canadian dollar against the background of the desire of investors to take risks. Technical charts now indicate the possibility of further U.S. dollar falling in the near future to 0.9638 Canadian dollars. A pair of U.S. dollar / Canadian dollar fell in Asian session on Tuesday to 0.9721 against the previous day's closing level of 0.9769 against the backdrop of improved relations investors to risk after release in the Wall Street Journal article talking about Germany's intentions to cease its efforts to support for postponing the maturity of Greek bonds to promote a new package of credit assistance to that country. Within weeks, Germany has insisted on the fact that private investors Greek bonds partly to share the burden of the new aid package. Concessions made now, Berlin, consisting in Greece to provide more money even without the burden-sharing bondholders in the near future, would help Europe overcome the indifference to the financial needs of Greece before her money runs out in mid-July. As at 05.24 GMT on the pair dollar / Canadian dollar was trading at 0.9725. From a technical standpoint, short-term prospects for the pair U.S. dollar / Canadian dollar becoming more negative after a couple has broken down on Tuesday support 0.9740, which is the base pairs of consolidation over the past five days. Daily slow stochastics show a decline in the overbought level, speaking in favor of the creation in the short term impact on the top of the maximum 0.9816. A pair of U.S. dollar / Canadian dollar could soon fall to 0.9638, a level of reaction a minimum of 20 May. Further decline in the pair could target it to 0.9509, the level of reaction low on May 11. Nevertheless, the negative prospects for the pair U.S. dollar / Canadian dollar will be reduced to zero, if on the basis of the global session, the pair closes above 0.9816.

DATA: GDP of Switzerland in the 1-sq m +0,3% k / k, 2.4% y / y

ZURICH, May 31. Switzerland's GDP growth in the 1 st quarter slowed, although exports of machinery and electrical products continued to neutralize the growth of the Swiss franc. This was pointed out on Tuesday the data of the State Secretariat for Economic Affairs.

According to the Secretariat, the Swiss economy has grown in the 1 st quarter by 0,3% compared with the previous quarter and by 2.4% over the same period last year. These results fell short of economists had forecast quarterly growth at 0.6% and year - by 3,0%.

In the 4 th quarter Swiss economy grew by 0,8% compared with the previous quarter and by 3.1% over the same period last year.

Strong domestic consumer demand due to the demand for housing and health care costs, and strong exports were the main engines of economic growth in the 1 st quarter.

Slower growth in the 1 st quarter against the recent increase in trade flows in Switzerland, as well as a stronger than expected, leading indicator KOF.

Board member of the Swiss National Bank President Jean-Pierre Dante said this month that the economy of Switzerland is well developed, which is shown by the strong Swiss franc.

Nevertheless, most market watchers do not think the Swiss National Bank raised a key rate from 0.25% to mid-September meeting due to the continued strength franc against the euro and the dollar.

The euro rose by nearly 3-week high against dollar

U.S. Dollar / Japanese Yen 81.21-26 81.37-80.69 +0.35%

EUR / USD 1.4379-80 1.4406-1.4282 +0.70%

Australian dollar / US dollar 1.0710-13 1.0756-1.0683 +0.27%

British pound / dollar 1.6540-45 1.6546-1.6471 +0.46%

Dollar / Swiss Franc 0.8503-10 0.8524-0.8463 -0.25%

/ Quotations are given at 04.50 am GMT /

May 31. / Dow Jones /. Euros in the Asian session on Tuesday rose to nearly three-week high against U.S. dollar amid falling fears about debt problems in Greece. Meanwhile, the yen fell against all major currencies after ratings agency Moody's Investors Service has begun to explore Japan's debt rating for possible downgrade.

According to the newspaper The Wall Street Journal, Germany intends to discontinue its efforts to support the postponement of the maturity of Greek bonds, to promote a new package of credit assistance to that country. According to traders, it could be a step that will help overcome the indifference of Europe to the financial needs of Greece.

"These messages are triggered buying euros - said Yuji Saito, director of Credit Agricole exchange market in Tokyo. "Nevertheless, real growth in the euro is associated with a change in the balance of world index MSCI", at the end of the month, he said. Euro and Swiss franc will benefit from this change in the balance, while the British pound came under pressure, said Saito.

Nevertheless, the British pound rose against the dollar.

"While it remains unclear whether Greece, eventually recover without restructuring the debt, even if now slightly decreased concerns about emergency debt restructuring," - says Daisuke Ueno, a senior analyst Gaitame.Com Research Institute.

According to the official representative of the European Union, made on Monday, the EU can exert pressure on the Greek banks are major creditors of the government that they have agreed to defer repayment of loans and gave Athens more time to reform and reduce the growing debt burden.

"They make sense to do this step in order to achieve sustainability in their own country," - spokesman. According to estimates released last month by the International Monetary Fund, the share of domestic credit institutions account for 38% of the debt of Greece.

Meanwhile, the Greek government intensifies preparations for the reduction of new spending and raise taxes in the amount of billions of euros, which it publishes in the next few days, even amid the continuing rise of broad opposition in the country, these new measures.

This week, Prime Minister Papandreou will hold a series of meetings with cabinet members and deputies from the Socialist Party in order to detail the new measures, as well as to prevent the growing discontent of ordinary members of the ruling party.

Agency Moody's Investors Service announced that has begun to explore the rating of sovereign debt for possible downgrade on the background of continuing difficulties, the government, which faces political deadlock on the issue related to fiscal consolidation and the way in which to finance recovery from the disaster in 1911 March. Japanese Finance Minister refused to comment on the decisions of private rating companies.

There is uncertainty about how the government intends to propose a supplementary budget, as well as clear the way will be financed by funds for restoration after the earthquake / "- said Takako Masai, general manager of market subgroups Shinsei Bank." Policy in Japan may become a factor selling the yen, "in the coming weeks. However, given the uncertainty about the U.S. economic recovery and the debt problems of Greece, the weakness of the yen may be short," she said.

The New Zealand dollar traded higher against the backdrop of growing business confidence

New Zealand dollar reached a peak on Tuesday with the introduction of a floating rate after that, the poll National Bank of New Zealand has demonstrated a significant increase confidence in business circles.
"New day, new and positive for New Zealand's economic data," - said NBNZ BNZ economist Doug Steel. - We expect that the results of the survey will be strong. In reality, they were simply stunning. "
According to a survey of business prospects NBNZ, 38,3% of respondents expect conditions will improve over the next 12 months, whereas in April and it was then carried out the previous similar survey / had expected 14.2%. Index of pure confidence is the difference between those who expect conditions will improve and those who believe that they will deteriorate.
New Zealand dollar peaked 0.8265 U.S. dollar after the release of these data.
However, BNZ currency strategist Mike Jones noted that after this the New Zealand dollar has fallen somewhat because of the fixed returns. However, this analyst expects the New Zealand currency will remain strong.
"It certainly will bathe in the glory of the report NBNZ", - said Jones.
Corporate Manager of Western Union Business Solutions Chris Hunter said that is difficult to assume, where there will be resistance levels for the strong New Zealand dollar, but it assumes that the next resistance may be at 0.8300.
"We are now in uncharted territory," - he said.
He added that the New Zealand dollar soon becomes a leader, and should not be on the heels of Australia.