*** AceTrader Daily Market Review ***

[acetraderfx]

Market Review - 29/04/2013 23:04GMT

Euro rises on formation of Italian government

The single currency rose against the greenback on Monday after Italy finally formed a government over the weekend, ending 2 months of political uncertainty.

Although the single currency opened higher and gained to 1.3067 in New Zealand on weekend news of formation of a 'new government' in Italy, euro retreated to 1.3032 at Asian open before trading sideways. Euro found renewed buying interest at European open and rallied to 1.3100 in early European morning on cross buying of euro versus other currencies before rising to an intra-day high at 1.3116 at New York open.

Versus the Japanese yen, although the greenback remained under pressure at Asian open and dropped to session low at 97.35 in Asian morning, price pared intra-day losses and rebounded to 97.97 in early European morning. Despite a brief retreat to 97.62 at New York open, dollar rose to an intra-day high at 98.20 at New York midday on speculation that the Federal Reserve will maintain bond purchases under quantitative easing for the foreseeable future before easing in U.S. afternoon.

The British pound traded with a firm undertone in Asia and extend its recent ascent to a fresh 2-month high at 1.5547 in European morning. However, selling interest ahead of 1.5550 prompted long-liquidation and cabled retreated to 1.5483 in New York afternoon.

In other news, Italy Prime Minister Enrico Letta said 'will maintain commitments on European budget limits; Europe must become a motor for growth, facing crisis of confidence; will visit Brussels, Paris, Berlin this week to demonstrate European commitment; Italy will from austerity alone, growth policies cannot wait; must reduce taxes weighing on labour and young people.'


Data to be released on Tuesday:

Japan manufacturing PMI, household spending, unemployment rate, industrial production, retail sales, housing starts, China market holiday, UK Gfk consumer confidence, mortgage approvals, France PPI, EU CPI, unemployment rate, Canada GDP, PPI, U.S. redbook retail sales, Chicago PMI and consumer confidence.

 

[acetraderfx]

May 1, 2013 : Dollar slumps as Chicago PMI unexpectedly dropped

Market Review - 30/04/2013 22:03GMT

Dollar slumps as Chicago PMI unexpectedly dropped

The greenback dropped against majority of its peers after U.S. Chicago PMI unexpectedly fell to its lowest level in 3 years, increasing speculation the Federal Reserve will maintain its bond buying under QE program as policymakers began a 2-day FOMC meeting today.

U.S. Chicago PMI fell to 49 in April, the lowest since September 2009, from 52.4 last month.

Although the single currency traded sideways in Asian morning and rose briefly to 1.3121 ahead of European open, price dropped to session low at 1.3052 in European morning after the released of weaker-than-expected Germany retail sales before recovering to 1.3084. Price jumped in New York morning and rose to an intra-day high at 1.3186 on dollar's broad-based weakness after U.S. Chicago PMI unexpectedly dropped to its lowest level in 3 years. Later, euro pared intra-day gains and retreated to 1.3146 at New York midday before stabilising.

Germany retail sales were reported at -0.5% m/m, lower than forecasts of 0.0%.

Versus the Japanese yen, the greenback remained under pressure in Asia and weakened to 97.61 in European morning before staging a recovery to 97.79 in New York morning. Dollar fell briefly but sharply to an intra-day low at 96.99 after the release of weak U.S. Chicago PMI, however, price pared intra-day losses and rebounded to 97.62 in New York afternoon.

The British pound traded with a firm undertone in Asia and edged higher to 1.5507 ahead of European open. Despite a brief pullback to 1.5474 ahead of New York open, price rallied to an intra-day high at 1.5570 in New York morning on dollar's weakness. However, cable pared intra-day gains and retreated to 1.5529 in New York afternoon before stabilising.

In other news, U.K.'s Chancellor of the Exchequer George Osborne said 'particularly important' that FPC gives due weight to impact of actions on near-term economic recovery.' Italy's Silvio Berlusconi said 'must re-negotiate deficit commitments made with EU; cannot be part of government that does not abolish IMU housing tax.'

On the data front, U.S. consumer confidence is released at 68.1, vs the expectation of 60.8, prior reading is revised to 61.9. EU unemployment in Mar came in 12.1%, worse than the forecast of 12.0%.

Data to be released on Wednesday:

Australia new home sales, manufacturing PMI, UK manufacturing PMI, U.S. ADP employment, manufacturing PMI, construction spending, ISM manufacturing and Fed rate decision.