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Market Review - 25/07/2013 22:26GMT
Dollar tumbles on tepid U.S. data
The greenback fell against other currencies in New York session on Thursday as the mixed U.S. jobless claims and durable goods are not good enough to support the view that the Federal Reserve will reduce its stimulus measures in near future.
Although the greenback retested Wednesday's top at 100.45 in Australia y'day, failure to penetrate aforesaid res prompted long-liquidation and U.S. dollar fell sharply to 99.77 and then 99.62 in European morning due to the steep fall in Japan's Nikkei-225 index together with the cross buying of yen versus other currencies. Later, despite brief bounce to 99.99 in New York morning after the release of U.S. jobless claims and durable goods, dollar's broad-based weakness pressured the pair to a low of 99.44. Dollar later tumbled to 98.87 near New York close.
U.S. initial jobless claims came in at 343K, worse than the expectation of 340K. U.S. durable goods in Jun came in at 4.2%, stronger than the expectation of 1.4%.
The single currency strengthened from Australian low at 1.3188 in Asian session on dollar's weakness and rose to 1.3238 in European morning after the release of better-than-expected German Ifo business climate and current condition, however, lack of follow-through buying prompted profit-taking and the pair tanked to 1.3166 but then rose strongly to 1.3240 in New York morning on broad-based weakness in the greenback due partly to the weak U.S. jobless claims and eventually climbed to 1.3296 near New York close.
German Ifo Business climate in Jul came in at 106.2, better than expectation of 106.1. current condition in Jul is released at 110.1, stronger than the forecast of 109.7.
The British pound rose from Australian low at 1.5305 in Asian morning and rallied to 1.5386 in European morning on expectation of upbeat U.K. GDP data, however, traders took their profit after the release of U.K. GDP, which came in at 0.6% m/m and 1.4% y/y, same as the forecast, price tumbled to 1.5263 but then staged a strong rebound in tandem with euro to 1.5435 near New York close.
In other news, IMF said 'ECB may need to cut interest rates again, make deposit rates negative to support growth; ECB should consider new LTRO for solvent banks, targeted LTRO linked to new lending to small firms or direct buying of private assets.' IFO economist Wholrabe said 'German economy is in catch up phase after weak Q1, Q4 of 2012; no sign that German economy is suffering from weakness in other euro zone states, China.'
Data to be released on Friday:
Japan CPI, France consumer confidence, Germany import price index, U.S. University of Michigan consumer confidence.
Dollar tumbles on tepid U.S. data
The greenback fell against other currencies in New York session on Thursday as the mixed U.S. jobless claims and durable goods are not good enough to support the view that the Federal Reserve will reduce its stimulus measures in near future.
Although the greenback retested Wednesday's top at 100.45 in Australia y'day, failure to penetrate aforesaid res prompted long-liquidation and U.S. dollar fell sharply to 99.77 and then 99.62 in European morning due to the steep fall in Japan's Nikkei-225 index together with the cross buying of yen versus other currencies. Later, despite brief bounce to 99.99 in New York morning after the release of U.S. jobless claims and durable goods, dollar's broad-based weakness pressured the pair to a low of 99.44. Dollar later tumbled to 98.87 near New York close.
U.S. initial jobless claims came in at 343K, worse than the expectation of 340K. U.S. durable goods in Jun came in at 4.2%, stronger than the expectation of 1.4%.
The single currency strengthened from Australian low at 1.3188 in Asian session on dollar's weakness and rose to 1.3238 in European morning after the release of better-than-expected German Ifo business climate and current condition, however, lack of follow-through buying prompted profit-taking and the pair tanked to 1.3166 but then rose strongly to 1.3240 in New York morning on broad-based weakness in the greenback due partly to the weak U.S. jobless claims and eventually climbed to 1.3296 near New York close.
German Ifo Business climate in Jul came in at 106.2, better than expectation of 106.1. current condition in Jul is released at 110.1, stronger than the forecast of 109.7.
The British pound rose from Australian low at 1.5305 in Asian morning and rallied to 1.5386 in European morning on expectation of upbeat U.K. GDP data, however, traders took their profit after the release of U.K. GDP, which came in at 0.6% m/m and 1.4% y/y, same as the forecast, price tumbled to 1.5263 but then staged a strong rebound in tandem with euro to 1.5435 near New York close.
In other news, IMF said 'ECB may need to cut interest rates again, make deposit rates negative to support growth; ECB should consider new LTRO for solvent banks, targeted LTRO linked to new lending to small firms or direct buying of private assets.' IFO economist Wholrabe said 'German economy is in catch up phase after weak Q1, Q4 of 2012; no sign that German economy is suffering from weakness in other euro zone states, China.'
Data to be released on Friday:
Japan CPI, France consumer confidence, Germany import price index, U.S. University of Michigan consumer confidence.
