Weekly reviews

The U.S. Labor Department reported the fall of the initial jobless claims by 19 thousands to more than eight year minimum of 284 thousand after 303 thousand the previous week. The U.S. secondary housing market sales rose in June for the third month in a row indicating its growth after months of a decrease. The consumer confidence in the 18 EU countries weakens for the second month in a row. This suggests that the new measures to stimulate the economy, previously announced by the European Central Bank failed to convince the households that the economy is recovering.

The dollar has noticeable strengthen after the Federal Reserve Chairman Janet Yellen said earlier in the week that the interest rates may rise sooner than expected, if the economic recovery will continue recovering. Nevertheless, the Fed chief also said that if the recovery failed, then the monetary policy would remain accommodative.

The Fed meeting participants discussed the expected monetary policy and the normalization tools. The published reports did not show new information about the date when the central bank is going to raise the interest rates. The new indication was the bond buying program to be completed after the October meeting. The Fed acknowledged some improvement in the economic activity in the last three months after the winter slowdown in the 1st quarter.

The Germany unemployed number increased by 9 million in June versus a decrease expectations. The unemployed growth continues for the second consecutive month. The German unemployment remained unchanged at 6.7%. At the same time, data on unemployment in the eurozone went better than expected. The Eurozone unemployment rate remained unchanged in May from a revised down April value of 11.6%, while it was expected to grow to 11.7%. The unemployment rate in Italy in May rose to 12.6% from 12.5% in April, in line with the expectations.

The Eurozone Consumer confidence fell in June for the first time after three months of a growth. The preliminary index of consumer confidence fell to -7.4 compared with 7.1 in May, against expectations of its growth. Last Friday Mersch from ECB said that the Eurozone was still not out of the economic crisis, in spite of the gradual progress in recovery.