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Market Review - 24/07/2013 22:21GMT
Euro retreats despite early rise due to strong German PMI
The single currency fell strongly in New York session on dollar's broad-based strength together with the strong rise in U.S. treasury yields despite early strong rise in European morning due to the upbeat German PMI data.
Euro ratcheted lower from Tuesday's top at 1.3239 to 1.3191 in European morning, however, the pair rose above 1.3239 to 1.3255 in European morning after release of better-than-expected German Service and Manufacturing PMI, which came in at 50.3 and 52.5, better than the forecast of 49.2 and 50.8.
Later, despite marginal gain above 1.3255 to a fresh 1-month top at 1.3256, lack of follow-through buying prompt profit-taking and price fell sharply to 1.3199 in New York morning after the release of strong U.S new home sales before staging a recovery to 1.3244, however, renewed selling interest pressured the pair to a low at 1.3177 in U.S. afternoon on the strong rise of U.S. treasury yields.
U.S. New home sales in Jun came in at 0.497M and 8.3% m/m, better than the forecast of 0.482M and 1.7%.
Usd/jpy traded with a firm undertone throughout the day. Price edged higher from Tuesday's New York low at 99.35 in Asia and rose strongly to 100.17 in European morning on active cross selling of yen versus. The pair later climbed to 100.44 in New York morning after the release of strong U.S. new home sales but then eased to 100.03. However, renewed buying interest lifted the pair to 100.44 in U.S. afternoon on the strong rise of U.S. treasury yields before retreating.
Although the British pound edged lower from Tuesday's top at 1.5392 to 1.5346 in European morning, the pair staged a rebound to 1.5390 but then dropped again to 1.5315 in New York morning due to cross selling of sterling versus euro, however, cable rebounded to 1.5377 on the fall in eur/gbp but then fell sharply to 1.5290 in U.S. afternoon.
On the data front, eurozone manufacturing and service PMI in July came in at 50.1 and 50.4, better than the forecast of 49.1 and 48.7. U.K. CBI industrial trend in Jul came in at -12, same as expectation. U.S. Markit PMI in Jul came in at 53.2, better than expectation of 52.5.
Data to be released on Thursday:
New Zealand rate decision, German IFO business climate, current assessment, Italy consumer confidence, U.K. GDP, U.S. jobless claims, durable good.
Euro retreats despite early rise due to strong German PMI
The single currency fell strongly in New York session on dollar's broad-based strength together with the strong rise in U.S. treasury yields despite early strong rise in European morning due to the upbeat German PMI data.
Euro ratcheted lower from Tuesday's top at 1.3239 to 1.3191 in European morning, however, the pair rose above 1.3239 to 1.3255 in European morning after release of better-than-expected German Service and Manufacturing PMI, which came in at 50.3 and 52.5, better than the forecast of 49.2 and 50.8.
Later, despite marginal gain above 1.3255 to a fresh 1-month top at 1.3256, lack of follow-through buying prompt profit-taking and price fell sharply to 1.3199 in New York morning after the release of strong U.S new home sales before staging a recovery to 1.3244, however, renewed selling interest pressured the pair to a low at 1.3177 in U.S. afternoon on the strong rise of U.S. treasury yields.
U.S. New home sales in Jun came in at 0.497M and 8.3% m/m, better than the forecast of 0.482M and 1.7%.
Usd/jpy traded with a firm undertone throughout the day. Price edged higher from Tuesday's New York low at 99.35 in Asia and rose strongly to 100.17 in European morning on active cross selling of yen versus. The pair later climbed to 100.44 in New York morning after the release of strong U.S. new home sales but then eased to 100.03. However, renewed buying interest lifted the pair to 100.44 in U.S. afternoon on the strong rise of U.S. treasury yields before retreating.
Although the British pound edged lower from Tuesday's top at 1.5392 to 1.5346 in European morning, the pair staged a rebound to 1.5390 but then dropped again to 1.5315 in New York morning due to cross selling of sterling versus euro, however, cable rebounded to 1.5377 on the fall in eur/gbp but then fell sharply to 1.5290 in U.S. afternoon.
On the data front, eurozone manufacturing and service PMI in July came in at 50.1 and 50.4, better than the forecast of 49.1 and 48.7. U.K. CBI industrial trend in Jul came in at -12, same as expectation. U.S. Markit PMI in Jul came in at 53.2, better than expectation of 52.5.
Data to be released on Thursday:
New Zealand rate decision, German IFO business climate, current assessment, Italy consumer confidence, U.K. GDP, U.S. jobless claims, durable good.
