The Euro trade on defense after three sessions of losses

Good Morning,

- The Euro trade on defense after three sessions of losses, rebounding from 13-month lows. The euro last trade above to $1.32 level, creeping up from a one-year low of $1.3152 set on Wednesday.

- Asia stocks steady. The S&P 500 posted another record closing high yesterday. Japan's Nikkei -0.48%, Hong Kong's Hang Seng -0.75% (07:13 GMT), Korea's Kospi 0.04%, Australia's ASX 200 -0.49% and China's Shanghai -0.62%.

- Against the Swiss franc, the euro held steady at 1.2070 level, up from Wednesday's low of 1.2060, its lowest level since December 2012.

- The rebound in the Euro knocked the dollar index off a 13-month peak. It last trade at 82.340, down from the high set on Wednesday at 82.727.

- Some sources told Reuters on Wednesday that the ECB is unlikely to take new policy action next week unless inflation figures on Friday show the euro zone sinking significantly towards deflation.

- Preliminary German inflation data due later today will be closely watched to gauge how soft the euro zone numbers might turn out.

- U.S. Treasuries rallied overnight, as European government bond yields continued to probe record lows and month-end buying, helped send 30-year Treasury yields to their lowest levels in over a year. German 10-year bund hit a record low at 0.898% on Wednesday.

- Bank of America on USD: In a note to clients today, Bank of America Merrill Lynch reiterates its structural bullish USD views arguing that evidence says that the Greenback is in the midst of a medium, if not long term, bull trend. However, in the very short-term, BofA warns that across currencies, the USD looks set to correct further. "Looking at USD/JPY, the pair should decline towards the 103.00 area before resuming higher towards 107.50, while USD/CAD should correct back around 1.0764 before regaining its firm footing and resuming its long term bull trend to and through 1.1280," BofA projects.

- Ukraine says Russian forces lead major new offensive in East. Tanks, artillery and infantry have crossed from Russia into part of eastern Ukraine in recent days, attacking Ukrainian forces and causing panic and wholesale retreat not only in this small border town but a wide swath of territory, in what Ukrainian and Western military officials described on Wednesday as a stealth invasion.

- The Australian dollar rose to a three-week high versus the U.S. dollar after second quarter business investment data beat forecasts.

- Business investment in Australia was stronger than expected in the June quarter, giving weight to Reserve Bank of Australia assumptions for second-quarter gross domestic product growth of about 0.4 per cent. However, spending on equipment, plant and machinery disappointed, forcing a series of gross domestic product downgrades among economists. The Australian Bureau of Statistics said on Thursday that seasonally-adjusted total new capital expenditure for the three months to end-June was ahead 1.1 per cent compared with the March quarter, to $37.6 billion. Year-on-year, there was a fall of 4 per cent

- Watch today: German unemployment, EU money, US jobs.

Have a nice Day!