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Markets SeeSomeLift as Additional EU Data is Awaited; RBNZto Hold Its Policy Meeting Later Today The US Dollar saw some selling pressure for the first time in the last few sessions as markets focus on the next major headline to determine trading bias. European equities are seeing a modest move higher but whether or not this is a true bullish move remains to be seen. Market attention will now turn to the Merkel, Sarkozy and Papandreou meeting that will take place later today for any potential alterations to previous bailout speeches. Earlier today, Moodyâ€™s gave a credit downgrade to two French banks and this is something that will be watched closely for the rest of the week. The EUR/USD is slightly higher at 1.3740-1.3590 and the USD/JPY is seen at 77.10-76.85. In Japan, Industrial Production saw a rise of 0.4% on a monthly basis for July. This is off sharply from the 3.8% that was seen in June but the previous figures were coming off of the historic lows seen after the countryâ€™s earthquake and tsunami aftermath. On the whole, this data provides some confirmation that the economic recovery that has been in place since March is starting to slow in momentum. Additional factors for Japan include the global growth slowdown and the extreme value of the Yen against all major currencies. These factors are all weighing heavily on the export economy and if this continues, we can be sure to hear of more intervention rhetoric from the BoJ. In the UK, average hourly earnings grew by 2.8% on a yearly basis, which is a slight rise from the 2.7% figure seen in June and was largely inline with market forecasts. The claimant count for the month increased to 20,300, which is a marked improvement from the 33,700 figure from July and an improvement on the market forecasts. Regional equities are seeing a bounce on the data and the FTSE is now trading at the highest levels of the month. In Australia, the Bureau of Statistics revised its inflation figures lower for the first half of 2011, which matches recent data in producer prices. Second quarter inflation was lowered to 2.5% on a yearly basis (from the 2.7% reading seen previously). In New Zealand, the RBNZ will hold its policy meeting, with its decision released at 21:00 GMT. Markets are expecting rates to remain unchanged at 2.5%, as global uncertainty will make it difficult to make any drastic moves in an already unstable marketplace. If this turns out to be correct, the attention will shift to the policy statement as investors look to assess any changes in the bias of the central bank.
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