The dollar is losing ground against the Euro and the Japanese Yen Wednesday afternoon, but is extending its gains against the pound sterling. The Euro has benefitted from investor optimism for a Greek resolution.
Economic data was rather light today. Consumer credit in the U.S. increased by less than expected in the month of May, according to a report released by the Federal Reserve on Wednesday. The report said consumer credit rose by $16.1 billion in May following an upwardly revised $21.4 billion jump in April.
Economists had expected consumer credit to climb by $18.5 billion compared to the $20.5 billion increase originally reported for the previous month.
Greece put in a request for a three year bailout program today. The Wall Street Journal reported that Athens will offer some austerity measures to be implemented next week in return for financing.
Eurozone leaders have set Sunday to be the final deadline for the crisis struck country to submit a new plan for financial assistance. Greek Prime Minister Alexis Tsipras failed to present EU leaders with a detailed reform blueprint at a meeting of finance ministers on Tuesday.
The dollar began Wednesday’s session around $1.0975 against the Euro, but has since slipped to around $1.1065.
UK Chancellor of the Exchequer George Osborne said Wednesday that the government will run a surplus in 2019-20.
In the Summer Budget, he said the budget deficit is estimated to fall to 2.2 percent 2016-17, then to 1.2 percent the year after that. It will move into a surplus in 2019-20, with a positive balance of 0.4 percent.
In this Budget, Osborne said the Office for Budget Responsibility revised borrowing down this year, to GBP 69.5 billion.
Borrowing then falls to GBP 43.1 billion next year, GBP 24.3 billion in 2017/18 and down to just GBP 6.4 billion the year after that.
Economic growth is expected to be 2.4 percent this year, down from 2.5 percent estimated in March. “That is faster than America, faster than Germany and twice as fast as France,” Osborne said.
The buck has dropped to a 1-month low of $1.5360 against the pound sterling, as it continues to retreat from Monday’s high of $1.5627.
U.K. house prices grew at the fastest pace in nine months in June, data from Lloyds Banking Group’s Halifax division showed Wednesday. House prices advanced 9.6 percent year-on-year in three months to June, a similar rate of growth was last seen in September 2014. Economists had forecast the rate to ease to 8.3 percent from 8.6 percent in three months to May.
Permanent job placements in the UK increased at the slowest pace in over two years in June, the Report on Jobs compiled by the Recruitment and Employment Confederation and KPMG showed Wednesday. The number of people placed in permanent jobs rose again in June, but the rate of expansion eased to the slowest in 25 months.
Shop prices in the United Kingdom were down 1.3 percent on year in June, the British Retail Consortium said on Wednesday, following the 1.9 percent decline in May. Food prices eased 0.4 percent in June, the data showed, while non-food prices dropped almost 2.0 percent.
The greenback has fallen to a month and a half low of Y120.417 against the Japanese Yen today, from yesterday’s high of Y122.876.
Japan posted a current account surplus of 1.880 trillion yen in May, the ministry of Finance said on Wednesday, surging 266.7 percent on year. The headline figure topped expectations for a surplus of 1.570 trillion yen following the 1.326 trillion yen surplus in April.
A measure of peoples’ assessment of the Japanese economy declined more-than-expected in June, survey data from the Cabinet Office showed Wednesday. The current index of the Economy Watchers’ survey dropped notably by 2.3 points to 51.0 in June from 53.3 in the prior month. Economists had forecast the index to fall slightly to 53.0.
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