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.

Find more economic news at the website.

Recovery Signals Boost Dollar Decline

The US currency ended up trades with a slide as the US economy showed first signals of recovery after the global recession. Today the US government is set to release its figures of GDP expected to decline at a slower pace in 2Q than in 1Q. Global corporate earning reports added to optimism. Participants of Forex market took advantage of the fresh optimism to choose higher-yielding currencies, such as the Euro and Aussie.

Yesterday Germany and the Euro-Zone issued better than expected reports on unemployment and consumer confidence bringing USD decline against EUR reaching 1.4128 level. The markets also witnessed the USD fall versus GBP as British consumer confidence showed optimistic results.

It is expected that today traders will go on trading with yesterday`s optimism. This behavior is expected to drive lower the USD index.

Euro-Zone Orders

According to the EU statistical agency Eurostat new orders for manufacturers in 16 countries with the euro currency fell 35.5 percent in April from a year earlier. This decline is considered to be the toughest since previous year. The worst situation were orders for tools, parts and components sold on to other producers, down nearly 40 percent. Car and home appliance orders decreased by more than a 25 percent.
Orders in Germany economy dropped by 39.5 percent. Eurostat said euro-zone orders slipped 1 percent from level of March. The entire 27-nation EU orders in April fell 35 percent from the same month last year and 0.5 percent compared to March. In Europe, however, new industrial orders in the euro zone turned out to perform very poorly.