Daily Market Review 17 of August
German Chancellor Angela Merkel spoke yesterday in support for European Central Bank's efforts to contain the debt crisis in the euro zone, boosting demand for riskier assets including Currencies, equity and Commodities.

Speaking at a press conference on Thursday night German Chancellor Angela Merkel expressed her support for the ECB's moves to save the Euro-zone. She backed President Mario Draghi's calls for doing “whatever it takes to preserve the euro,” and said that ECB's stance is completely in line with European leaders' vision.

'What he said is something we repeated time and again since the beginning of the Greek difficulties more than two years ago,” Merkel assured.

Merkel's words boosted sentiment in the markets as they reassured investors that European leaders are working closely together on preserving the euro-zone. By the end of the US session the S&P 500 closed at its highest level since early April and settled with a 0.71% gains to 1415.51. The Nasdaq went even further outperformed the market after Cisco shares jumped nearly of 10% and Apple shares hit a new closing high of $636.34.

On the macro front, data showed on Thursday that U.S. building permits issued in July rose 6.8% to 0.812 million, compared to expectations for an increase of 1.2% to 0.770 million. Of course this positive data did it share in boosting the market sentiment. But as usual, no good comes without bad, manufacturing activity in the Philadelphia-region remained in contraction territory for the fourth straight month in August and the Department of Labor said unemployment claims in the U.S. last week rose to a four-week high.

A poor economic calendar for today is expected to keep the markets on hold at least until next week.

The only major enouncement’s for today will be the Canadian inflation data (CPI and CORE CPI) that are due at 12:30 GMT and the Michigan Consumer Sentiment out of the US that are due at 13:55GMT.

EUR/USD The bloc currency opened today session to the  down side following yesterday mini rally, but the release of Germany’s July Producer Price numbers, although disappointing, triggered an upside move to the 1.2360 area.  Without any major enouncement expected further in the day, it is likely that the bloc currency will consolidate around the current levels a head of the weekend.