Euro M3 Money Supply Grew at a Slower Pace

The ECB stated on Thursday that M3 money supply in Euro-Zone rose at a slower pace of 3% in July compared to June's 3.6%. As market experts tend to think the annual growth rate will ease to 3.2%. Among the main components of M3, M1 increased 12.2% in July, up from 9.4% in June. Meanwhile, the annual rate of change of short-term deposits depreciated to minus 2.6% from 0.4% in June. Furthermore, the annual rate of change of marketable instruments dropped to minus 7% from minus 4% in the previous month. The euro-region economy barely contracted in the Q2 as Germany and France unexpectedly emerged from the decline.

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Strengthening of USD Positions

On Monday the greenback gained its positions versus major currencies traded in Forex market, from a string of recent declines after signals at the end of the week that CBs of different countries continued to carry out a policy of keeping their Interest Rates low for the near future. Technical analysis experts continue to expect that at some point signs of strength in the U.S. economy will be treated as positive for the nation's currency, ending an inverse relationship since the period of financial recession, where negative news performed a negative influence on purchasing the U.S Dollar.

The US currency also appreciated yesterday versus the EUR and Japanese Yen as Wall Street halted earlier gains and traders shifted their trading positions ahead of U.S. consumer and Housing data to be released this week. Solid U.S. data and probable reappointment of Federal Reserve Chairman Ben Bernanke pushed investors to carry out riskier transactions at the expense of the JPY and USD.

Alcoa 2Q Report

Thursday American indexes started trades with decline and fall continued throughout the whole session, sales encompassed the whole stock. USA started its corporate report period for 2Q and the first company to issue a report traditionally is Alcoa and this report is expected to be one of major economic events for this Week. Both stock and currency markets are likely to respond positively to this report. Yesterday Alcoa`s stock gained a little bit marking a rare exception. Alcoa Inc., which is expected to report a quarterly loss Wednesday amid a slump in global aluminum demand, is positioning itself for an new economic rebound by investing in markets it thinks are ripest for recovery.
The largest U.S. Aluminum company has done a $750 million expansion of a construction factory in Russian Federation. This will allow it to produce beverage cans for the European market. The company recently bought a small Morocco fasteners business that supplies European aerospace customers.
Klaus Kleinfeld, Alcoa's chief executive, said on Tuesday that he observes recovery signals in some sectors, including the aluminum market. In Russian Capital, where he was traveling with U.S. President Barack Obama, Mr. Kleinfeld said the North American automotive market is on the way of reviving.
Alcoa is the world leader in the production and management aluminum, fabricated aluminum and alumina combined, through its active and growing participation in all major aspects of the industry. Alcoa`s production is used in aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design and engineering.